Felda, Agrobank collaborate in settlers’ development programme

The government agency said the initiatives being implemented include enhancing the loan management services of settlers to tackle issues raised by them, so that a better and more transparent loan management system can be established (Pic: TMRpic)

By BERNAMA / Pic TMR

THE Federal Land Development Authority (Felda) yesterday inked a collaboration agreement with Agrobank for a new model of settlers’ development programme (PPP) worth RM100 million, which will involve the participation of 100 settlers’ cooperatives and 500 individuals.

This cooperation will focus on implementing high-value, large- scale projects in an effort to increase the income of the settlers.

The projects that are selected and being planned will involve the participation of industry players under the auspices of Agrobank that are successful in their respective fields.

“Each qualified settler or cooperative will receive a grant from Felda for cost of capital subject to a maximum value of RM20,000 based on the assessment by Agrobank. The operational cost will be financed by Agrobank, with the guarantee from Felda.

“Overall, the project collaboration targets the involvement of 100 settlers’ cooperatives and 500 individuals,” Felda chairman Datuk Seri Idris Jusoh told reporters at the PPP agreement signing ceremony yesterday.

He said the PPP is expected to generate additional income of RM1,000 to RM1,500 for each settler in the form of annual dividend for cooperative projects, and RM500 to RM1,000 per month for individual projects.

To date, the projects that have been identified are MD2 pineapple farming, chilli cultivation using fertigation system, young ginger cultivation and planting of other high- value crops in the future, he said.

Meanwhile, Agrobank chairman Datuk Mustapha Buang said the PPP project was able to open up new opportunities for the Felda community, enabling them to explore opportunities in the agriculture sector that has huge potential to generate lucrative income.

“Agrobank is consistently committed to driving development for target groups and local communities by providing comprehensive financing solutions to the agro community, covering full value chain financing from supply of agricultural produce to processing and sales of agricultural products to consumers,” he said.