Kelantan gets serious to take over 55,000 hectares of Felda lands

Feb 23: The Kelantan state government will form a legal panel to advice it on the state's acquisition of 55,000 hectares of lands belonging to Felda Plantations, to be mortgaged for 99 years to Felda Global Ventures Holding, the loss-making company which is scheduled to be listed on Bursa Malaysia on May 10.

State exco member Husam Musa said the takeover was necessary as the plan to mortgage the lands to FGVH would violate the Group Settlement Areas Act 1960 (GSA), which stipulates that the lands can only be for settlers and the settlers’ cooperative.

Should the listing take place, Husam said settlers would lose their status as majority shareholders in Felda Plantation to FGVH.

At present, settlers through Koperasi Permodalan Felda form the majority with a controlling stake of 51 percent in Felda Plantation. However, once lands were mortgaged to FGVH upon listing, KPF’s stakes would be reduced to 37 percent.

Husam (right) said the move also ensure justice for the settlers based on the earlier agreement where Felda Plantation was the biggest shareholders.

Husam stressed that the state government had the right to retake the lands to be distributed to new settlers.

“If this happens, some 8,000 new settlers will be given four acres each,” he said.

Last month, National Felda Settlers’ Children’s Association (ANAK) revealed that none of the Pakatan Rakyat-led states in Kedah, Kelantan and Selangor had agreed to sign any land deal transfering ownership of lands in these states to the proposed listed company FGVH.