THE government’s commitment to guarantee up to RM9.9 billion for the Federal Land Development Authority (Felda) to issue sukuk will help reduce the organisation’s financial burdens. 

Chairman Ahmad Shabery Cheek said the guarantee boosted Felda’s efforts to transform as well as resolve settlers’ debts. 

“Under the unity government, there is clearly an agreement that the government will help Felda to repay the sukuk. 

“The government’s confirmation through this guarantee makes Felda happy and provides relief to all Felda settlers,” he told Bernama last night. 

On July 9, the Finance Ministry announced that beginning this year, the government is allocating up to RM1 billion a year to enable the redemption of Felda sukuk. 

The ministry said in a statement on June 28 that Prime Minister Anwar Ibrahim, who is also the finance minister, had signed an agreement providing a government guarantee to restructure Felda’s loans, which included reducing the agency’s principle debt with financial institutions by RM7.9 billion. 

The agreement will, among other things, enable Felda to cancel 80% of settlers’ debts amounting to RM8.3 billion. 

Shabery said Felda will begin to focus on efforts to upgrade digital economy capabilities in all its regions. 

The things he will focus on include improving Internet connectivity to support e-commerce and the gig economy. 

“The first thing I will do as chairman after this is to go to the field to see for myself how the telecommunication infrastructure is in the entire Felda area as well as the efforts that can be made to improve the marketing of Felda products,” he added. – Bernama, July 12, 2023.