Will Felcra settlers benefit from staged debt write-offs?

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Felcra Settlers to Benefit from Staged Debt Write-offs for Less Viable Projects

Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi has agreed that debts associated with Felcra Berhad’s less viable land development projects under its Consolidation and Rehabilitation programmes will be written off in stages over five years. This decision aims to alleviate the burden on settlers, with the implementation contingent on Felcra maintaining a stable financial position annually. The initiative underscores a shift in focus towards the overall welfare and benefits for Felcra settlers, rather than solely on profitability.
Debt Write-off for Less Viable Projects Approved

The write-off specifically targets debts incurred from land development projects categorized as less viable. These projects have faced challenges where crop yields were insufficient to cover operational and management costs. Felcra had sought approval to write off over RM230 million in such debts over a five-year period, contingent upon the company's financial capacity to do so each year.
Emphasis on Settler Welfare and Financial Stability

The implementation of the debt write-off is directly linked to Felcra's year-to-year financial stability, ensuring that the agency can manage its obligations while providing relief to settlers. Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi emphasised that Felcra's primary objective is to assist smallholders and improve the lives of its settlers, not just to generate profits. Management has been cautioned against burdening settlers with debts stemming from reduced production or operational difficulties.
Restructuring Aims for Fair and Sustainable Returns

Felcra's ongoing restructuring and transformation efforts are centred on enhancing the welfare of its settlers. The aim is to ensure that settlers receive equitable and sustainable returns from their participation in the agency's programmes. This approach prioritises the long-term well-being and prosperity of the settlers involved in the consolidation and rehabilitation schemes.
Development Allocations in Sabah Highlighted

In parallel with these debt relief measures, Sabah has been allocated nearly RM28 million for various development projects under Felcra through Rolling Plan 1 of the 13th Malaysia Plan, extending up to 2026. These allocations cover crucial areas such as plantation redevelopment, agricultural infrastructure, road upgrades, social amenities, and business premises, demonstrating a broader commitment to rural development and settler support.

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Will Felcra settlers benefit from staged debt write-offs?

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