KUALA LUMPUR (July 5): Felda Global Ventures Holdings Bhd (FGV) has reiterated its continued support of smallholders and settler families. 

The Bursa Malaysia main board-listed company said it is proud of its roots which run deep in Malaysia’s first smallholder programme established under the Federal Land Development Authority (Felda) and will continue to work closely and support smallholders and settler families. 

In a statement, its group president and chief executive officer Dato’ Zakaria Arshad said: “FGV itself has its genesis in Felda and till today, continues to work closely with smallholders and settler families, offering the critical link between farmer and marketplace.” 

His remarks follow on the heels of an article in Berita Harian Online on July 3, 2018, titled FGV Holdings Jangan Guris Hati Peneroka, which translates to FGV Holdings, Don’t Hurt The Feeling of Settlers. 

Clarifying FGV’s stance, Zakaria said: “Today, six years after FGV’s listing on Bursa Malaysia, FELDA remains our largest shareholder and an important stakeholder, as are the settlers.” 

FGV is determined to champion the cause of all smallholders on the international stage, especially at a time when the industry’s license to operate is being challenged for a number of reasons, he added.

Zakaria said FGV has always respected the position of its smallholder suppliers, including settlers, and will work hard to preserve and strengthen the bond that it has with them.

“FGV supports more than 112,000 FELDA settlers who produce and supply a third of our fresh fruit bunches.

“Another third of FGV’s production is from 350,000 ha of plantations that are managed by FGV under a Land Lease Agreement (LLA) with Felda.”

FGV said it pays Felda RM250 million annually for the lease of the land and also shares 15% of its annual profit from the LLA-related land with Felda.

“Noteworthy to mention that every year since our listing, FGV has never failed to pay dividends to its shareholders,” Zakaria said.

“We will continue to work towards ensuring all shareholders benefit from FGV’s growth and success.”

On another note, FGV also clarified that Koperasi Permodalan FELDA Malaysia Bhd (KPF) owns 5.15% shares in FGV as at June 1, 2018, which is 187,966,608 shares and not 800 million shares as reported.

FGV closed a sen or 0.68% lower to RM1.49 today, for a market capitalisation of RM5.47 billion.