Felda needs transformation, restructuring to ensure sustainability

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Image for illustrative purposes only. – FILE PIX
KUALA LUMPUR - The Federal Land Development Authority (Felda) needs to undergo restructuring and internal transformation to increase efficiency and steer its way through the changing times.

As an institution responsible for managing and developing agricultural land, Felda has to deal with various challenges in the increasingly competitive and rapidly changing world of agriculture, said Universiti Keusahawanan Koperasi Malaysia (UKKM) associate professor Dr Abu Sofian Yaacob.

"Felda needs to be ready for change to increase operational efficiency, strengthen competitiveness, and meet the future needs of the agricultural sector.

"Structuring and transformation need to involve new technologies, including digital platforms, in order to increase productivity and modernise their production processes," he said to Bernama.

During the Felda Settlers’ Day 2023 celebration yesterday, Prime Minister Datuk Seri Anwar Ibrahim said the government has approved an annual allocation of up to RM1 billion for 10 years starting this year, to ensure Felda's survival.

He also stated the Unity Government’s commitment to write off a portion of settlers’ loans amounting to RM8.3 billion.

Abu Sofian said with the government’s assistance, Felda can now focus on maximising its competitiveness as an organisation that plays a crucial role in the development of the agricultural and economic sectors in Malaysia.

He added that integration between Felda and the settlers should be the main focus in restructuring the organisation.

By combining various existing resources, it is hoped that better results can be achieved in the management of agricultural land and improving the settlers’ well-being, he said.

"The use of new technologies such as automation, drones and data analytics will enable Felda to optimise agricultural processes and resource management, and a digital platform will be able to improve communication and collaboration between the parties.

"By increasing efficiency and competitiveness, Felda will be able to play a greater role in supporting agricultural development, increasing organisational resilience, and driving the country's economic growth in general," he said.

In addition, Abu Sofian hopes that with the new capital injection, the Felda Cooperative can be revived to help the settlers.

"One of the main benefits of the Felda Cooperative is that it allows the settlers to pool their resources and strengths, and increase their access to better resources.

"Through cooperatives, Felda and the settlers can work together in various areas such as procurement of agricultural inputs, marketing of agricultural products and financial management," he said.

Meanwhile, Icats University College pro vice-chancellor Professor Datuk Dr Shazali Abu Mansor said the aid given by the government to Felda can be diverted to other more profitable investments.

"This also includes indirect investments in the form of education, training and skill development for the Felda community, which comprises approximately 120,000 settler families nationwide.

"This would eventually help to improve the local economy through increasing job opportunities or businesses ventures which are compatible with the skills and knowledge that they have been taught,” he said.

He added that the government's committment to write off a portion of settlers’ loans not only provides an opportunity for Felda settlers to improve their standard of living economically, but can also be a dynamic human capital development model in overcoming social problems among rural communities.

"It can also help reduce the economic gap between rural and urban communities.

"Overall, I believe that the move gives Felda settlers as well as their families a chance to improve their standard of living and hopefully they will continue to be able to contribute to the country’s development," he said. - BERNAMA