“FELDA DEPOSIT” BROKEN

The mismanagement at the plantation group and the backlash from the fiasco at state-owned 1Malaysia Development Bhd (1MDB) broke the so-called “Felda deposit” with settlers turning their backs on UMNO.

It led to the fall of the Najib-led National Front government in the 2018 general election, pushing the country in the period of unprecedented political uncertainty that saw the government change hands three times before Mr Anwar took over after the national polls in November.
 
In early July this year, Mr Anwar’s government moved in to break the financial impasse at Felda after it agreed to provide an Islamic MYR9.9 billion debt facility, known as Sukuk, for the plantation group to restructure its debts and also resolve the funding problems faced by settlers.

Under the proposed financial restructuring facility, Mr Anwar’s government will allocate up to MYR1 billion annually for the redemption of the Felda sukuk.

A senior politician in Mr Anwar’s inner circle said that there is “general opposition to UMNO having any direct role in Felda”.

“Giving Felda back to UMNO to control is not going to win back the Malay vote,” he said, adding that getting the state plantation concern back on a strong financial footing is the better approach.

Sunway University’s Professor Yeah Kim Leng, who sits on a five-member panel advising Mr Anwar on financial matters and GLC reform, told CNA that the priority for Felda is to make sure that it is put back on a proper footing with sound professional management.

“The goal should be to bring the plantation company on par with its private sector players in terms of profitability and efficiency,” he said.

He added that for PM Anwar, the objectives for GLC reform are to set clear mandates, whether social or commercial, with no political interference.

“We have to learn from past lessons,” he added.