Felda faces RM10 billion loss from mismanagement, says Malaysia's PM

Prime Minister Anwar Ibrahim said the Federal Land Development Authority (Felda) is now burdened with nearly RM10 billion in debt, after years of mismanagement and excessive political interference. He noted that the government must pay roughly RM980 million each year to service the agency’s debt, a stark reversal from Felda’s former status as the world’s largest plantation company that generated billions in profits for over 100,000 settler families.

Anwar blamed a change in leadership about eight years ago and the consequent politicisation of the agency’s management, rather than the work of the settlers, for the downturn. He recalled that under the agency’s founders, Raja Muhammad Alias Raja Muhammad Ali and later Tan Sri Taib Andak, Felda was efficiently run and delivered strong returns. The comments were made at the Semarak Kenegaraan programme in Gemas, Negeri Sembilan.