Maslan insists Felda listing to result in RM1.5 bil turnover
| Harakahdaily, | 27 January 2012 |
Jan 27: Deputy minister in the Prime Minister’s Department Ahmad Maslan has reacted to National Felda Settlers’ Children Association's warning of a RM1.5 billion annual deficit should Felda Global Ventures Holding go ahead with the listing plan as announced by prime minister Najib Razak.
Maslan (pic) said the leasing of Felda lands to FGVH, which ANAK had earlier projected at RM251 million per annum, was a way for Felda to obtain a turnover of RM1.5 billion.
"Prior to the listing, we studied the mechanisms to ensure that Felda will make money. Besides that (land leasing), Felda will also profit big from the floating whereby the returns, when invested each year will yield almost half a billion ringgit," he was quoted as saying.
Yesterday, ANAK economic advisor and former Bank Negara director Rosli Yaakob said Felda could see a huge fall in revenues as FGVH would only pay RM251 million in rental and also 15 per cent of profits from its oil palm plantations, which amounts to RM257 million at the projected price of RM2,900 per tonne of oil palm fruits for the 360,067-hectare land mortgaged by Felda Plantations to FGVH.
This, he said was based on the lease agreement between Felda Holdings and FGVH which was revealed by the association yesterday.
“Felda’s revenue which is around RM2 to RM 2.3 billion a year, will be left with a mere RM508 million. Even that is subject the price of the commodity remaining stable as it is now,” said Rosli, adding that Felda had turned in a profit of only RM400 million in 2010.
“Felda’s expenditure in 2010 exceeded RM1.98 billion. Felda will suffer a deficit of RM1.5 billion. Who will bear this cost?” he asked. 
The listing plan will result in the loss-making FGVH controlling the 51 per cent stake owned by more than 200,000 smallholders in Felda Holdings, which made RM760 million in 2010.
FGVH subsidiaries had accumulated losses of around RM500 million up to last year from its overseas investment.
Against this backdrop, Maslan however claimed that RM1.5 billion per annum deficit projected by ANAK, which has yet to include the losses suffered by FGVH, could be recovered by Felda's existing investments.
Maslan's response was however described as confirming ANAK's fear of the absense of any concrete plan.
“Apart from those so-called ‘strategies’, it was clear that there was no real concrete plan based on Maslan’s statement to Bernama,” said a political observer.
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