25 September 2020, Friday | 12:37pm

Government to inject RM6.23b into FELDA

2019-04-10

KUALA LUMPUR: The government has agreed to allocate RM6.23 billion into the Federal Land Development Authority (Felda) in stages through grants, loans and government guarantees as needed to sustain the authority’s future.

The allocation announced by Economic Affairs Minister Datuk Seri Mohamed Azmin Ali during his tabling of the White Paper on Felda in Parliament today will give the development authority a needed injection of funds following its poor financial position,

The following are the highlights on Felda Group’s financial position and difficulties as presented in the white paper.

Felda Group’s liabilities as at Dec 31, 2017 totalled RM14.4 billion, with RM12.1 billion or 84 per cent of total liabilities due to the group’s debts to financial institutions.Non-current assets and current assets totalled RM25 billion in 2017.Debt after tax from 2007-2010 increased from RM1 billion to RM1.1 billion, and following Felda Global Ventures’ (FGV) initial public offering (IPO), Felda recorded losses from 2013-2017.Felda’s cash in 2011 was RM3.9 billion and in 2017, it was only RM0.4 billion.

The main reason for the RM4.9 billion losses in 2017 was deterioration in revenue from the Lend-Lease Agreement (LLA), as well as non-strategic investments and corporate takeovers.There were investment impairments in FGV totalling RM2.1 billion, as well as fair value loss on the investment in PT Eagle High Plantations Tbk which amounted to RM1.6 billion in 2017, including foreign exchange losses.

BERNAMA

 

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