Friday 29 Mar 2024
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KUALA LUMPUR (Oct 31): The Dewan Rakyat was told today that Federal Land Development Authority (Felda) settlers’ collective debts amounted to RM5 billion as at July 2016.

In a written reply dated Oct 24 to Bukit Gantang member of Parliament, Idris Ahmad, Deputy Minister in the Prime Minister's Department Datuk Razali Ibrahim said these debts were made up of RM3.6 billion in estate development, RM1.3 billion of socioeconomic debts, and advanced fertiliser of RM158 million.

“Estate development consists of initial development, replanting and enabling settlers to takeover estate under Felda’s management. Socioeconomic debts consist of home enlargement loans, Felda Global Ventures Holdings Bhd (FGV)’s loan stock, entrepreneur loans, computer and education loans. Advanced fertiliser debts were to allow settlers to get fertiliser on monthly instalment payments,” Razali explained.

Among the three types of debts, he said estate development were the highest, as settlers are required to pay back total operation and living costs advanced by Felda, as well as plantation yield advanced by Felda on selective basis.

“These pay backs will only be executed by Felda, after the settlers’ yield started for the fifth or sixth year of replanting development period, and it will be deducted through their monthly paysheet,” he said.

“Socioeconomic debt is an interest-free loan scheme offered by Felda to settlers and it is not a mandatory debts for all of them,” he added.

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