KOTA BARU: The billion-ringgit worth of losses incurred by the Federal Land Development Authority (Felda) has sent shockwaves among the younger generation of Felda settlers.
Kami Anak Felda vice president Mohd Syahbuddin Hashim said the more than RM1 billion in losses that Felda has recorded would have a huge impact on farming activities in the land settlement schemes.
"The report shocked everybody. Many people especially those in Felda could not except what was revealed.
"Kami Anak Felda is worried about this because if this continues, it will give an impact to activities in Felda areas," said Syahbuddin, who is Galas assemblyman and Kami Anak Felda's Kelantan chairman.
Kami Anak Felda is a non-governmental organisation representing younger Felda settlers and their family.
Syahbuddin said he would further study the report to get a better picture of what had happened.
The 2022 Auditor General's Report yesterday revealed that Felda incurred an increased net loss amounting to RM1.005 billion in 2022, as compared to RM545 million in 2021.
The report also said the outstanding loans from external institutions for Felda amounted to RM8.659 billion, a slight decrease from RM8.809 billion in 2021.
In 2022, Felda received a reduced grant of RM214 million as compared to RM342 million in 2021.
The reduction in grants received by Felda affected its operational sustainability as it is highly dependent on financial assistance from the Federal government, the report said.
The Auditor General's report had recommended that Felda chart a course to operate independently, ensuring strong financial performance without continual reliance on external assistance.