SIX months after casting their vote for Pakatan Harapan, patience is wearing thin for Felda settlers who claim that the new government has done nothing to cut their debts or cushion the effects of the plunging price of crude palm oil.

“During the elections, they made so many promises. They said they will clear our debts. What happened to that?” asked 67-year-old Kaulan Ngadiran from Felda Moakil in Labis, Johor.

“In fact, we were informed that there was a government proposal to actually reduce our cost of living allowance from RM1,400 to RM1,200. What are we to eat then?”

He said monthly allowances were given to settlers who have handed over their land to Felda Technoplant. However, this allowance was actually a loan which will be settled with the profits made from their land.

This scheme had caused many of the settlers to accrue huge debts and it was Pakatan Harapan’s promise to clear these debts which won many of the settlers over in the 14th general election.

PH also promised to revamp Felda’s management to protect the settlers.

Persatuan Anak Peneroka Felda Kebangsaan chairman Mazlan Aliman said all debt repayments should be suspended until the management is revamped, especially in light of the dropping prices of crude palm oil.

“When payments are automatically credited for their debts, the income of the settlers are affected,” he told The Malaysian Insight.

He also hoped the government would give special incentives to settlers and farmers following the drop in palm oil prices.

Anger at Putrajaya over China snub

Many settlers have taken Putrajaya to task for the plunging price of crude palm oil, with many blaming the new government’s decision to cancel several mega development projects for a drop in demand from China, the biggest importer of Malaysian palm oil.

Earlier this week, palm oil prices fell below RM2,000 per tonne for the first time in three years, trading at RM1,965 a tonne, the lowest since August 2015.

Shahri Yunus, a settler from Felda Moakil 1, said Putrajaya should not offend China as the giant was the main buyer of Malaysian palm oil.

“They should stop their big mouth. They have cancelled the East Coast Railway project (ECRL), and other projects involving China, and as a result it is the Felda settlers who are suffering,” said the 45-year-old.

Pakatan Harapan has cited the high cost of the RM55 billion ECRL and two gas pipeline projects – the Trans-Sabah Gas pipeline and the Multi-Product Pipeline – as reasons for their cancellation as the government struggles to repay its RM1 trillion debt.

However, Shahri said Putrajaya has angered Beijing, leaving the planters and farmers to suffer.

“It is okay if the government pays a bit more for the ECRL project as China would buy our palm oil which will benefit the settlers as well as planters.

“But with ECRL cancelled, China has stopped buying our palm oil. They decided to buy from elsewhere. We end up with nothing. No ECRL, no money for palm oil,” he said.

In this Felda settlement, the settlers receive only RM380 per tonne for their palm oil.

Data from Malaysia Palm Oil Board shows palm oil exports to China show a reduction of 144,777 tonnes or 10.8% to 1.2 million tonnes for the first nine months of this year, from 1.34 million tonnes in the same period last year.

Last month, Prime Minister Dr Mahathir Mohamad attempted to allay fears of a further drop in exports by announcing that China intends to procure an additional 500,000 tonnes of palm oil from Malaysia, provided prices are competitive.

But Felda settler Yusof Abdullah, 57, isn’t about to celebrate and is instead bracing for prolonged hard times as the government sorts out its diplomatic ties with Beijing.

“If each China citizen uses a tablespoon of palm oil, that is a big market for us,” he lamented.

“If China stops buying our palm oil, we will suffer.” – November 17, 2018.