Deputy Prime Minister Ahmad Zahid Hamidi has agreed to write off RM230 million in debts for Felcra’s less viable land projects over five years, depending on the agency’s financial stability.
BEAUFORT: Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi has approved the staged write-off of debts for Felcra Berhad’s less viable Consolidation and Rehabilitation land development projects nationwide.
The implementation will occur over five years, contingent upon Felcra maintaining stable financial performance annually.
Zahid, who is also Rural and Regional Development Minister, emphasised that although Felcra operates as a corporate entity under Minister of Finance Incorporated, his ministry bears full responsibility for ensuring proper management and continued benefits for settlers.
“We know Felcra was established to help the people, especially smallholders, by consolidating their efforts and enabling them to prosper together,” he said at the Felcra MADANI Santuni Rakyat programme here.
He issued a stern reminder to Felcra’s management against burdening settlers with outstanding debts resulting from production declines and operational challenges.
Felcra chairman Datuk Seri Ahmad Jazlan Yaakub had earlier sought approval for writing off more than RM230 million in land development debt from less viable projects.
He explained that crop yields from participants in these areas proved insufficient to cover management costs, making the debt unsustainable.
Separately, Zahid announced that Sabah received development project allocations under Felcra through Rolling Plan 1 of the 13th Malaysia Plan, totalling nearly RM28 million until 2026.
The allocation includes RM20.42 million for oil palm and rubber plantation redevelopment and RM6.6 million for agricultural infrastructure.
More than 1,200 local residents attended the Felcra MADANI Santuni Rakyat programme, demonstrating the federal government’s commitment to uplifting rural communities in Sabah.
