THE Federal Land Development Authority (Felda) is in talks with the Ministry of Finance to issue government-guaranteed sukuk to restructure its loans amounting to RM2.5 bil, Minister in the Prime Minister’s Department (Economy) Mustapa Mohamed told the Dewan Rakyat today.
The sukuk issuance is part of Felda’s RM6.23 bil bailout by the government through grants, loans and government guarantees that was announced during the release of the Felda White Paper in April 2019.
Meanwhile, the government has also established a special task force chaired by Bursa Malaysia chairman Abdul Wahid Omar to find ways in which Felda can become financially independent and sustainable.
The task force is expected to present its findings in August, said Mustapa.
The Felda White Paper, released in April last year, outlined various strategies to revive the federal agency, including a new model for settler land management and economies of scale.
Other refinements addressed in the white paper include corporate management reform and a more robust accounting system. – July 16, 2020
