The government aims to cut down the debts of the Federal Land Development Authority by almost 15% which comes to an amount of RM 6.8 million by the end of the current year. This statement was made by Datuk Seri Mohamed Azmin Ali, Minister of Economic Affairs. He also said that they have already met with the financial institutions which are concerned to restructure the loan of Felda. He also added that the cash flow situation was also affected by the prices of the lower crude palm oil.
Minister of Economic Affairs also mentioned that plans have been made to improve the cash flow of the Federal Land Development Authority, but the situation was part of the main priorities of the Board of Directors which has been newly installed for the Felda. In addition to this, the minister also sdaid that Felda was also in the middle of looking at the offloading part of the assets which are non-strategic like real estate properties which was purchased at the rate of RM 2.2 billion in locations such as London, Sarawak, and Sabah.
In this way, Felda will be able to meet all the part of the commitment made by them to the settlers who are near about 112,635. Mohamed Azmin, Minister of Economic Affairs also said that the steps which have been taken up by the board of directors of Felda and also by the government were expected that it would improve the situation of the cash flow in the coming two years. The steps and the issues which have been taken up by the financial management of the Felda and the governance will be mentioned in white paper with every detail on it. The white paper is a document which is on the verge of completion and it will also be presented in the recent session of the parliament.