BELOW are excerpts of an exclusive interview with Felda chairman Tan Sri Mohd Isa Abdul Samad.
Question: What is Felda’s main agenda in improving the settlers’ standard of living?
Answer: At the moment, Felda is focusing on housing projects for the new generation in more than 300 settlements nationwide. Housing is a major issue and Prime Minister Datuk Seri Najib Razak himself realises that Felda must provide housing for the new generation.
This is because some Felda children have not migrated to towns, and, are instead, more comfortable with remaining on the settlement land. Therefore, Felda is embarking on the first phase of a housing project that offers homes with a built-up area of 1,000 sq ft for RM90,000
a unit. The project, which involves 8,470 units, started last year and is under construction. Some are already 90 per cent ready.
The implementation of the project was somewhat delayed because loans were not obtained from financial institutions.
So far, Felda has allocated close to RM500 million. Normally, housing projects do not involve funds from the company or organisation, and are instead financed via bank loans.
Felda hopes that once we get bank approval, the project will be continued. InsyaAllah, it will be fully completed by next year.
Question: There were allegations that the failure to complete the first phase of the housing project was because Felda ran out of funds. Is this true?
Answer: The problem of completing the first phase on time was politicised by certain quarters. The issue was not because Felda had no funds but rather, getting loans from financial institutions.
Question: Who is eligible to enjoy this housing scheme and how is it managed?
Answer: Buyers comprise children of settlers. Felda encourages them to buy but at the same time, they can opt for the rent-to-own concept. However, a major issue of concern is when a buyer wants to obtain a loan from the bank. The banks, of course, want the buyers to show their salary slips and this has caused some problems.
As a result, Felda will discuss with the affected parties on how best to resolve this matter. The feedback received from several settlement areas is that the settlers welcomed this housing scheme, whether it is done as outright sales-and-purchase or rent-to-own.
Question: When do you foresee the financing problem for the first phase will be resolved?
Answer: Felda is dealing with many banks. It is understood that Maybank is prepared to offer loans by the end of this month. We hope to get this. We have been dealing with several other banks.
Based on the first-come first-served basis, we will take advantage of the opportunities that come along. As a result, Felda expects a portion of the project’s first phase can be occupied by March or April next year.
Question: What is the status with the second phase?
Answer: For the second phase, the prime minister had asked Felda to develop more than 11,000 units, worth RM70,000 each, with a built-up area of 850 sq ft.
Felda has decided to appoint only one company to develop the project. The developer will deal with financing and several banks have given their commitment to provide financing to the appointed developer. This project will start soon with foundation work for 3,000 units, while the balance is awaiting approval, including from the local authorities.
Question: Is housing a serious problem, especially for the younger generation of Felda settlers?
Answer: It is true the new generation of Felda do not have homes because Felda allocated one plot of land for one house, and there are already homes that have been renovated because the houses are occupied by more than one family. The prime minister is aware of this issue faced by the settler community, and the price of the house has been reduced from RM90,000 to RM70,000 to make them more affordable.
At the moment, Felda is offering one unit to every family although there are homes occupied by more than one family. If there are families that reject the offer because they cannot afford to buy or rent, the offer will be opened to other families.
Question: What are Felda’s plans for next year?
Answer: Felda will continue to give priority to solving the housing issue by adding new residential units from time to time according to need, because we have more than 300 settlements.
If possible, every settlement area should have new residential units to enable the children of settlers to live in the settlements.
The second biggest challenge is how to increase our revenues as the country is heading towards a developed nation status with a high-income population. At the moment, we are in the middle-income level. Efforts are underway, especially in encouraging settlers to become entrepreneurs, by increasing the number of entrepreneurs who are now only 25,000 or 19.1 per cent of the settlers.
Thirdly, Felda is intensifying skills courses among the new generation. It is an ongoing programme to provide added value, especially to those who do not further their studies to higher institutions.
In addition to sending youth to skills institutes across the country, Felda provides skills training courses at three institutions run by Felda Foundation — in Mempaga (Pahang), Kelana Jaya (Selangor) and Raja Alias (Negri Sembilan). The Felda skills centre in Mempaga is focused on catering and hospitality; the Kelana Jaya centre on information technology and computers, and Raja Alias on sewing and salon.
Question: What issues are often manipulated by the opposition to show Felda’s weakness in caring for the settler community?
Answer: The issue of housing projects is often talked about, especially by the opposition. But I am confident the Felda community is familiar with the behaviour of the opposition ever since Felda was set up, not to mention that this issue crops up every time ahead of elections.
InsyaAllah, the Felda community will not be affected by the opposition’s propaganda. They know that in every election, there will be issues brought up by the opposition to raise doubts and erode voters’ confidence in the government.
So far, they have not managed to convince the settlers and I am confident that the Felda community’s support for Umno and Barisan Nasional (BN) will still be strong in the coming general election.
Question: Are the actions of some senior Umno leaders — who quit the party and joined the opposition movement — affecting settlers’ support for Umno and BN for the coming general election (GE)?
Answer: I believe these issues will not have much impact.
When there is a crisis of leadership, there will be problems, but the crisis is not something extraordinary. It happened when Datuk Onn Jaafar left Umno. Although there were some problems, they were resolved.
All these issues were raised ahead of the GE and died down after that, proving that the issues were raised solely for the purpose of elections. If you say their actions were for the good of the nation, they have all been given the chance (to do so) before this.
What exactly are these leaders trying to demonstrate? Their era has passed. They should provide an opportunity for today’s leaders to implement national development policies.
I hope people give their trust to our leaders to run the country... problems arise when issues are politicised.
InsyaAllah, with the information programme to the grassroots, Felda remains a fixed deposit for BN in the coming GE.