Felda and Terengganu state government sign settlement to resolve land status for 15,000 hectares of plantations, ending a long-standing legal issue.
KUALA LUMPUR: The Federal Land Development Authority and the Terengganu state government have signed a settlement agreement to resolve the land ownership status of commercial plantations across six districts.
The agreement covers areas in Besut, Setiu, Dungun, Hulu Terengganu, Marang and Kemaman.
Felda stated the move continues cooperation dating back to 1969 under the Land Development Schemes Agreements. It said the settlement will generate economic returns and benefits for the Felda community, aligning with efforts to strengthen socio-economic development.
The authority expressed appreciation to the federal government for acting as the main facilitator in the negotiations. It also thanked the Terengganu state government and other involved parties for finalising the agreement.
“The close cooperation between the federal and state governments, as well as Felda, has been the key driver in achieving this amicable resolution,” the statement read. It added that the outcome reflects effective governance in the interest of the people.
The settlement follows a dispute where the state government issued notices prohibiting encroachment on land cultivated by Felda. The notices involved 10 plantations covering approximately 15,000 hectares.
The state had claimed the land was developed without payment of premiums, taxes or profit-sharing for over 40 years. Notices were issued simultaneously to plantation management in all six affected districts.
However, the state government later extended the remedial period for Felda following positive developments from negotiations.
