Putrajaya to help solve RM9.9 billion worth of FELDA settlers debts

SHAH ALAM - The government has approved a guarantee of up to RM9.9 billion for the Federal Land Development Authority (FELDA) to issue sukuk bonds to facilitate the implementation of the restructuring of settler's debts.

The Finance ministry stated that starting this year, the government will allocate up to RM1 billion annually to enable the refinancing of FELDA's sukuk, which includes the settlement of settlers' debts.

"The government is committed to ensuring the FELDA recovery plan, including the settlers' debt restructuring as previously announced, is to be implemented accordingly.

"In line with this, the government has approved a guarantee of up to RM9.9 billion for FELDA to issue sukuk bonds," the ministry said in a statement on Sunday.

Previously, Sinar had reported that Perikatan Nasional (PN) Chairman, Tan Sri Muhyiddin Yassin, accused Prime Minister, Datuk Seri Anwar Ibrahim, of lying about the settlers' debt restructuring.

Muhyiddin also denied allegations made by the Tambun Member of Parliament, who claimed that he did not implement the settlers' debt restructuring during his administration.

On Saturday, FELDA Chairman Datuk Seri Ahmad Shabery Cheek claimed that the PN government led by Muhyiddin failed to fulfill its promise to settle the settlers' debt.

Ahmad Shabery stated that in 2021, the government led by the Pagoh member of parliament had announced the settlers' debt restructuring for FELDA.