Azmin promises White Paper on Felda’s cash flow.
Economic Affairs Minister Mohamed Azmin Ali says a White Paper to reduce the Federal Land Development Authority (Felda) debt of RM8 billion will be presented at the current Parliament sitting.
He said Putrajaya was facing a critical cash flow in debt-riddled state plantation giant Felda and looking at ways to reduce the debt, including through the appointment of a new management in July.
“Felda’s cash flow position is in a critical situation with its borrowings from financial institutions amounting to RM8 billion as at June 30 this year. Therefore, the new board of directors is working with these financial institutions to restructure the loans,” he said.
“We are also looking at action plans to benefit the settlers,” he added during the question-and-answer session at Dewan Rakyat today.
He was replying to Hassan Abdul Karim (PKR-Pasir Gudang), who asked the ministry whether it was true that Felda’s cash flow was nearly nil, and what steps had been taken to safeguard the settlers.
“In addition, Felda is also looking to dispose of its non-strategic assets like properties in London, Sabah and Sarawak, which it bought with a cost of RM2.2 billion. These efforts are expected to reduce Felda’s borrowings by 15% to RM6.8 billion by end of this year,”