THE government is committed to the full execution of the Felda recovery plan, including the disposal of the settlers’ debts, the Finance Ministry (MOF) said today.

“In relation to this, the government has approved a government-backed guarantee of up to RM9.9 billion for Felda to issue sukuk (bonds),” it said in a statement.

“Starting 2023, the government will also allocate up to RM1 billion annually to enable the redemption of Felda sukuk, which, among others, will finance the settlers’ debt relief.”

The statement followed the claims of former prime minister Muhyiddin Yassin that his successor Anwar Ibrahim had lied about the disposal of Felda settlers’ debts. 

Muhyiddin said it was his administration that had cleared the debts in 2021.

In response, Anwar, who is also the finance minister, said he had just signed off on the approval for the disposal of debts last month. 

“How can you say you have completed it, (when) I just signed it at the end of June. So, when you said it was completed, which part did you complete?” Anwar asked.

Anwar said the previous government had agreed to dispose of the debts but did not follow that up with action.

“Budget 2021 and Budget 2022 tabled by Perikatan Nasional had no provision to settle and dispose of Felda settlers’ debts. I stand by this record. 

“Only in Budget Madani 2023 did I start to set aside more than RM990 million as an early allocation to dispose of Felda settlers’ debts amounting to RM8.3 billion,” he said.  – July 9, 2023.