PUTRAJAYA’S attempt at reviving Felda will depend on how effectively they execute the plans in the white paper to put the cash-strapped land scheme back on track, settler groups said.

The groups, who represent a broad segment of more than 112,600 families living in Felda settlements, welcomed the Pakatan Harapan government’s white paper, which revealed the agency’s critical financial standing and the steps it will take to correct the problems.

But what worries them is whether Felda’s management, the agency behind the scheme, is up to the task of carrying out the government’s proposals effectively.

The agency’s management and board have in the past shown a tendency of mucking up even the best laid plans, they said.

Of particular concern, said two of the groups, was Felda Technoplant Sdn Bhd (FTP), a subsidiary that has angered many settlers for failing to manage and harvest their 4ha holdings adequately.

Suara Generasi Kedua Felda (SGK2F) and the Felda Youth Council (MBDM) both said a revival of Felda is not possible without reforming FTP as it is responsible for managing all of the settlers’ holdings.

SGK2F adviser Zulkefli Nordin went a step further and said Felda’s top management must be removed and reformed as they have failed to administer the scheme.

“Otherwise, no matter how much you change the government, the plans to revive Felda will not work,” said Zulkefli.

The groups also said while they welcomed the government’s new business model for Felda, it needed to be discussed further with settler families in all 317 schemes so as to get their maximum buy-in.

They also hoped Putrajaya will complete building more of the abandoned housing schemes for second generation settlers as they have already paid for these units.

“The government also needs to lift the prices of palm oil and latex as settlers depend on these commodities as a primary source of income,” said MBDM president Muhammad Fadzli Hasan.

Maximum buy-in

There are currently about one million individuals in 112,635 settler families living in 317 Felda schemes throughout Peninsula Malaysia.

Putrajaya announced it is allocating RM6.23 billion in various grants, loans and government guarantees to resuscitate and transform the land development agency.

About one third or RM2 billion of the government’s allocation will be used to pay the interests owed by settlers who took replanting loans and income advances.

This write-off meant that the Pakatan Harapan government has fulfilled an election pledge to abolish unreasonable debts in Felda, said Mazlan Aliman who heads a settler umbrella group called Majlis Muafakat NGO Felda.

Another RM1 billion will be spent over four years to create new agricultural activities for the settlers and their families so that they are not totally dependent on oil palm for their income.

The administration is also spending RM250 million to complete 4,794 units of abandoned houses that were meant for second generation settlers. However, this is less than half of the 11,000 housing units whose projects are uncompleted, said Mazlan.

Besides these measures, the government announced that a new business plan is being developed which would allow each, separate four ha plot to be joined together to create larger estates which can then be more effectively and productively managed.

The new model is a response to the shift in Felda’s population, where more than 70% of its first generation settlers have died, said Mazlan.

Most of these 4ha plots are now being managed by the first generation’s children, said Mazlan but their legal status is still unclear.

Fadzli of MBFM said the problem is that not all of the descendants of the first generation are interested in becoming planters or farmers.

“The business model would hopefully allow us to lease our plots to create an estate. The income we gain from this we can use to fund other activities,” said Fadzli, a son of settlers from Felda Ayer Tawar in Kota Tinggi, Johor, which has highest population among the settlements.

“But in order to do this, the settlers’ groups, the government and Felda need to work out its details such as how much each family stands to gain. And then we need to convince everyone of its benefits.” – April 12, 2019.