PETALING JAYA: Felda has successfully disposed a significant portion of its debts, thanks to fund injections and government guarantees to the tune of RM2.5 billion.
Felda general manager Datuk Dr Othman Omar said the agency would now focus on accepting more bond offers to settle the balance of its debts, totaling around RM10 billion, as agreed on in the White Paper on Felda tabled in Parliament in April.
“Much of our bank loans have been settled via government guarantees of RM2.5 billion, which recently received approval.
“More will be done at year end and next year to gain bond offers to make payments and restructure our borrowings, which now stand at around RM10 billion,” he told reporters during Felda’s corporate visit to Sri Pentas, here today.
Present were Felda chairman Tan Sri Mohd Bakke Salleh; Media Prima Bhd (MPB) Group chairman Datuk Syed Hussian Aljunid, MPB group managing director Datuk Kamal Khalid, MPB group executive director Datuk Iskandar Mizal Mahmood, MPB editorial and news operations executive director Mustapha Kamil Mohd Janor and Media Prima Television Network television chief executive officer Johan Ishak.
Othman was responding to a question on Felda’s plans and targets on improving its cash flow next year, following a RM810 allocation for the agency in the 2020 Budget.
The allocation, among others, includes RM250 million to increase the earnings of 11,600 settlers; RM300 million to clear the settlers’ loan interest; RM100 million towards water supply in Felda settlements; RM70 million for next generation housing; and RM90 million to upgrade roads and basic infrastructure in Felda settlements.
Othman said the allocation, announced by Finance Minister Lim Guan Eng, can help resolve Felda’s cash flow issue, bank loan repayments as well as assist in programmes for its settlers.
“At least half, or more than 50,000 settlers will gain from the clearing of the loan interest.
“Several programmes to improve the settlers’ income is also being implemented, such as farming of rabbits, which has received good response from old and new settlers, and is hoped to reduce the negative impact caused by low palm oil prices,” he said.
On Felda’s corporate visit to Sri Pentas, Othman said he was confident that MPB would be able to prepare a platform for Felda to deliver its message and information to the target group.
“We want to deliver our message to the target groups in the towns and settlements as during our engagement sessions, there were many settlers and administrators that we could not reach out to.
“With MPB’s cooperation, we hope to reach out to these groups and deliver our messages so that our programmes are more accurate and effective,” he said.