The financing package will drive efficiency, support settlers, and expand downstream business ventures.
In a significant move to strengthen its financial foundation, the Federal Land Development Authority (Felda) has secured a total of RM8.92 billion in government-guaranteed financing.
The package, confirmed by Deputy Prime Minister Datuk Seri Ahmad Zahid Hamidi in a parliamentary reply, consists of two components:
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RM3.72 billion in government-guaranteed sukuk.
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RM5.2 billion in a government-guaranteed revolving credit-i (GGRC-i), with a maturity date set for June 2027.
This financial backing is strategically linked to the future of FGV Holdings Bhd. Following its delisting from Bursa Malaysia last August, FGV is now focused on a comprehensive restructuring to become a more efficient, competitive, and sustainable company.
As the largest shareholder, Felda will ensure FGV remains committed to generating sustainable profits. The returns will be channeled back to strengthen Felda’s own financial position and, crucially, to safeguard the welfare of its settlers.
The consolidation also allows for significant operational synergies. By combining procurement for essentials like fertilizers, pesticides, and equipment, Felda and FGV can achieve substantial cost savings, reducing the financial burden across its plantations and settlers’ lots.
Looking to the future, FGV is prioritizing expansion in high-value downstream sectors. This includes ventures into oleochemicals, palm-based food products, biodiesel, and renewable energy—initiatives expected to unlock new growth and increase contributions to the national economy.