Felda to review land lease agreement with FGV

KUALA LUMPUR (April 10): The Federal Land Development Authority (Felda) will be reviewing the land lease agreement (LLA) it has with FGV Holdings Bhd.

The financially-stressed agency intends to revisit the terms of the LLA for a fairer deal.

"Felda is in discussion with the management of FGV to relook into the terms of agreements that have been agreed upon previously so that they will benefit all parties, particularly the settlers," said Minister of Economic Affairs Datuk Seri Mohamed Azmin Ali during the debate on Felda's White Paper in Parliament this afternoon.

During his speech earlier, Azmin said Felda should receive an annual payment of RM248 million plus a 15% share of plantation profit generated from the 99-year lease of its commercial land.

However, Felda only received an average of RM400 million a year from FGV, which was listed on Bursa Malaysia in 2012, versus the minimum requirement of RM800 million per year to manage the plantations and to ensure the livelihood of settlers.

— theedgemarkets.com

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