Felda is in the process of returning back to black

SHAH ALAM - The ailing Federal Land Development Authority (Felda), which has been hit by massive losses in billions and liquidation of several subsidiary companies, is now looking at restructuring processes to go back to black.

Felda as the largest shareholder FGV Holdings Berhad (FGV) would continue to benefit from the latter's achievements as a result of the corporate restructuring that was implemented as well as ensuring that FGV operates excellently based on the best management with optimal returns to safeguard the interests of settlers and the new generation.

“FGV, as a company listed on the main market of Bursa Malaysia requires an experienced and skilled board member responsible for formulating sustainable growth strategies as well as driving the company towards excellence for the benefit of Felda and its stakeholders,” Felda said in a statement today.

Therefore, the company said that it would provide appropriate support to policies, proposals and planning from FGV based on assurance that the company’s achievements must continue to be improved.

Commenting on the allowance increment for its Board’s, Felda said it was deemed appropriate considering that it had not been reviewed for a long time, and it was in line with the company’s performance which recorded the best performance in 2021 where FGV earned a profit after tax of RM1.175 billion.

“In fact, this remuneration is also deemed appropriate after being studied by external consultants in comparison with other government-linked companies and public listed companies with market capitalisation equivalent to FGV as a benchmark.

“This review also includes the Chairman's allowance and also involves the car allowance which is simply reclassified to directors ’fees.

Felda added that the change was in accordance with the Board’s responsibilities to manage a company listed with a fairly large market capitalisation such as FGV.

“Shareholders, other than Felda also voted in favour of the remuneration increase during the AGM (annual general meeting) which has just been completed as an appropriateness sign of the division,” the statement read.

Felda added that it had previously rejected a resolution on the payment of Directors' fees FGV in 2019 when the company was not profitable, which proved Felda’s commitment to protect its interests as major shareholders.

The interests of settlers and new generations are always discussed at the organisation’s level and remain our main agenda despite FGV not directly dealing with the settlers.