Palm oil price of above RM3,000 will benefit settlers, says Felda chief
Published on: Thursday, February 16, 2017
Kuala Lumpur: A high palm oil price of above RM3,000 per tonne would benefit the Federal Land Development Authority (Felda) settlers, says Chairman Tan Sri Shahrir Abdul Samad.He said the current price was better than before and Felda hoped for a higher price as settlers would receive reasonable returns which would be good for them."This is our business model where settlers are able to enjoy maximum returns while Felda's function is to guarantee plantations are well-managed and ensure that payment for fruit bunches are reasonable," he told Bernama here Wednesday.
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A higher commodity price would contribute to the country's economy which would boost entrepreneurship and socio-economic activities, he said.He said Felda and Felda Techno Plant (FTP) managed almost 72 per cent of the settlers in the Felda Plan while 14 per cent are self-managed. Felda, for its various activities, needed some RM1.7 billion to RM1.8 billion yearly, with 30 per cent of it used for workers' emolument and administration while the balance used for infrastructure, re-plantation, managing gardens, fertilising and providing loans for the settlers, he said.Since its commencement in 1956, Felda has been receiving contributions from the government to pay wages, investment purposes and others.
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From 1996 onwards, Felda has been independently accounting for its expenses and activities from its income.For its income, Felda depended on its investments in local companies, properties, shares and other investment, with the largest being a land lease to Felda Global Ventures Holdings Bhd (FGV), amounting to RM300 million a year.
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"We are looking into all components such as bank loans, government allocations, asset returns and others to collect enough fund for expenses," he said.Meanwhile, in an interview with a local business radio today, Shahrir said, Felda was also looking forward to offload more of its assets and shares to stabilise the organisation's cash flow."This is the first thing that we would do. We decided to sell some of our stakes from our shares and portfolios. For example, we sold our stake in Malayan Banking Bhd (Maybank)."For this year, I'm looking forward to getting some financial assistance, interim and to sell our hotel assets," he said.It was reported that Felda aimed to sell RM280 million of its shares in Maybank to pare down its stake in the nation's biggest bank.Next, Felda will also look into its 71 per cent stake in Encorp Bhd and 21 per cent stakes in Iris Corp Bhd.Felda is currently in the process of selling its hotel in London, which it bought for £98 million (RM543 million) in 2014.Shahrir said the value of the hotel, located in Bayswater, has matured, making it an asset that the organisation could dispose of.He said after being appointed as the new chairman earlier this year, he was mandated to go back to the company's root—to look after the farmers.Stay up-to-date by following Daily Express’s Telegram channel.
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