Felda land issues, KPF restructuring top government priorities

The Malaysian government is set to prioritize addressing long-standing issues faced by Felda settlers, focusing on land rights for the second generation and the financial restructuring of Koperasi Permodalan Felda Berhad (KPF). Deputy Prime Minister Datuk Seri Dr. Ahmad Zahid Hamidi stated that these initiatives aim to secure the future of the Felda community.

Among the key priorities is resolving land issues for the second generation of Felda settlers, enabling them to build homes on inherited land. Amendments to the Group Settlement Area (GSA) Act have been brought before the Cabinet. Pahang and Johor have already taken steps to grant titles for second-generation housing on existing lots. Ahmad Zahid urged other states to follow suit, emphasizing the importance of these measures for the benefit of current and future generations of Felda settlers. He also noted that electricity and water supply issues in Pahang have been resolved, while Johor is in the process of implementing them.

The government is also paying close attention to KPF's financial standing, responding to member demands for share redemptions due to low dividend returns in recent years. KPF requires approximately RM350 million for share redemption claims and an additional RM150 million to settle outstanding payments to creditors. Ahmad Zahid expressed his commitment to assisting KPF's management in restructuring assets to ensure these payments are made by the end of the year.

This restructuring is considered crucial for revitalizing KPF's performance and enabling it to provide better dividend returns to its members. Furthermore, the government is reviewing proposals to return plantations currently managed by third parties back to Felda's direct management. This move is expected to strengthen Felda's financial position and reduce its reliance on government aid.