Minister in the Prime Minister’s Department (Economy) Mustapa Mohamed
KUALA LUMPUR (July 7): 90% of the loans amounting to RM8.3 billion incurred by the Federal Land Development Authority (FELDA) settlers were for replanting activities, said Minister in the Prime Minister’s Department (Economy) Mustapa Mohamed.
He said the government’s move to write-off a significant portion of the loan would be a source of relief for settlers.
“Alhamdulillah (praise be to Allah), it has been a year since FELDA’s transformation process began. It is now back on track, after going through difficulties since 2012.
“Thank you Prime Minister Tan Sri Muhyiddin Yassin for the special gift in conjunction with the FELDA Settlers’ Day celebration today,” he said in a Facebook post today.
In a pre-recorded speech today, Muhyiddin said the government has agreed in principle to dispose of part of the Felda settlers’ loans amounting to RM8.3 billion as an initiative to revive the 65-year-old organisation.
He said the disposal of the loans – to be implemented through a conditional loan adjustment initiative – would reduce the loan burden of each settler by an average of 80%.
Muhyiddin said the conditional disposal included, among others, the partial adjustment of the replanting loan balance as of Dec 31, 2019, amounting to RM8 billion, which would benefit 92,441 settlers or 82% out of a total of 112,638 settlers.
Meanwhile, Mustapa said that for the first time ever, settlers would get a complete statement of debts, including the amount of loans written off.
“Even though the country is facing a difficult situation due to Covid-19, the government made this decision to ensure Felda’s sustainability, moving forward.
“In order to succeed, the settlers and the management need to work together and work as a team,” he said.
Read also:
FELDA has potential to become world’s top plantation group again, says PM Muhyiddin
Conditional loan disposal to reduce 80% burden of settlers, says PM Muhyiddin
