Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi proposed that a portion of the land currently managed by FGV Holdings Berhad (FGV) be returned to the Federal Land Development Authority (Felda) to strengthen Felda's financial position. He announced the proposal on July 7 during a press conference after Felda Settlers' Day and Felda’s 70th anniversary celebration at Tun Abdul Razak Stadium in Bandar Pusat Jengka, officiated by Prime Minister Datuk Seri Anwar Ibrahim [1, 2, 3].
Zahid said, "I am of the view that if the management of Felda plantations is restructured and handled by Felda itself, the process of settling debts can be accelerated. This step is also expected to provide better returns to the settlers" [1]. He added his agreement with Anwar's emphasis that priority must be given to the welfare of Felda settlers across generations [2].
Prime Minister Anwar Ibrahim said the federal government spends nearly RM1 billion annually to assist Felda, including settler welfare, and acknowledged the financial challenges facing the authority. He stated the government inherited Felda’s debt burden due to past mismanagement and estimated it would take at least nine years to restore Felda's finances [1, 2, 3].
Anwar also said the government is supporting Koperasi Permodalan Felda (KPF) in restructuring several assets to enable the cooperative to repay approximately RM350 million in share redemptions. This is to help members facing low dividends amid stock and property market downturns. The restructuring is planned for implementation by the end of 2026 [1, 2, 3].
Zahid highlighted the cooperative’s challenges, saying, "This restructuring is currently being carried out, particularly to help those who purchased KPF shares and had to take loans or sell their properties. As such, the restructuring that has been submitted to me will be implemented by no later than the end of this year" [3].
The proposal to return part of FGV-managed land to Felda aims to accelerate debt settlement and improve financial returns for settlers. The government continues efforts to stabilize Felda’s finances, with concrete steps such as KPF’s asset restructuring set for completion by year-end.
