How much is Felda projected to lose from the hotel sale?

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Felda faces a projected RM330 million loss from a proposed hotel sale.

Prime Minister Datuk Seri Anwar Ibrahim has directed the Federal Land Development Authority (Felda) to submit a comprehensive report concerning the planned sale of a hotel. The hotel is slated to be sold for £100 million (RM550 million), a figure significantly lower than its original purchase price of £160 million (RM880 million) by the previous management. This discrepancy indicates a projected loss of £60 million, equivalent to RM330 million, from the transaction.
Hotel Sale Price Discrepancy

The Prime Minister revealed that he withheld approval for the hotel's sale upon learning it was to be disposed of for £100 million. This price is considerably less than the £160 million paid by Felda's prior management to acquire the property. The difference between the purchase and sale prices points to a substantial financial shortfall.
Prime Minister's Intervention

Anwar, who also serves as the Finance Minister, stated he refused to sign the document authorising the sale. He emphasised his commitment to overseeing Felda, an institution he described as being under his purview. His decision to halt the sale was prompted by the significant loss anticipated from the transaction, particularly in light of the ongoing financial challenges faced by Felda settlers.
Context of Settler Hardships

The Prime Minister highlighted the struggles of Felda settlers, noting their requests for improved basic facilities such as air conditioning and school repairs, alongside concerns about insufficient income. He contrasted these settler needs with what he described as Felda "casually losing money" through such a disadvantageous sale. This disparity underscores his concern for the responsible management of Felda's assets.
Mandate for a Comprehensive Report

The directive for Felda to provide a complete report aims to safeguard the agency, which is considered a vital institution in Malaysia. Anwar stressed the necessity of addressing such financial irregularities to prevent the decline of key agencies, particularly those historically associated with the Malay community. He views correcting these issues as crucial for the future viability of these organisations.

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How much is Felda projected to lose from the hotel sale?

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