BAKKE SALLEH IS FELDA CHAIRMAN
Ex-Felda Holdings CEO to quit as Sime Darby Plantation managing director
TAN Sri Mohd Bakke Salleh of Sime Darby Plantation Bhd will succeed Tan Sri Megat Zaharuddin Megat Mohd Nor as Federal Land Development Authority (Felda) chairman.
Bakke will helm and take over the challenge of managing the agency’s RM8 billion debt and recovery plan from July 1.
Announcing this yesterday, Economic Affairs Minister Datuk Seri Azmin Ali said Prime Minister Tun Dr Mahathir Mohamad had agreed that Bakke would helm Felda for two years until June 30, 2021.
“Bakke has extensive experience in the plantation sector and
business world.
“An honest man, he has proven himself in upholding good corporate governance,” Azmin said.
“I am confident Bakke can rehabilitate and lead Felda to be a source of pride among settlers and their families.”
Earlier this week, Megat Zaharuddin announced that he would retire from the post on June 30.
Bakke, 64, is retiring as managing director of Sime Darby Plantation on Sunday, after nine years with the company.
Azmin thanked Megat Zaharuddin for his contributions to Felda and commitment in completing the White Paper on Felda, which was tabled in Parliament in April.
Prior to heading Sime Darby Plantation, Bakke used to be chief executive officer of Felda Holdings Bhd in 2009.
Bakke graduated from the London School of Economics, the United Kingdom, in 1977.
He has been a member of the Institute of Chartered Accountants in England and Wales (ICAEW) since 1983 and Malaysian Institute of Accountants since 1988.
Felda was established in 1956 by the government to help poor Bumiputeras by resettling them in oil palm and rubber estates, with the hope of eradicating poverty through economic empowerment.
With more than 900,000ha of land in Malaysia, Felda is one of the world’s largest palm oil producers.
Together with their secondand third-generation family members, the 112,635 settler families make up a community of 1.2 million people.
About 335,000ha from Felda’s total land bank are currently run by FGV Holdings Bhd (FGV) under a land lease, which was established in 2012, for 99 years.
Out of Felda’s total land bank, and excluding the 335,000ha held by FGV under the land lease, another 475,000ha are appropriated to Felda settlers, while Felda’s own managers operate the remaining 40,000ha of the plantation land bank.
Under the land lease, FGV pays Felda about RM248 million per year, plus a 15 per cent share of the group profits.
The 15 per cent profit-sharing fluctuates according to implied discounted cash flow, prices of fresh fruit bunches and crude palm oil, replanting of old trees and the lease term.
Among urgent matters Bakke has to look into is to resolve Felda’s high debts, tight cash flow and complicated land lease with subsidiary FGV.
Among suggestions previously put forward by market observers include Felda taking FGV private and delisting it from the stock exchange.