KUALA LUMPUR – The waiver of 80 per cent of settlers’ loans worth RM8.3 billion is much-awaited news by the Federal Land Development Authority (Felda) settlers across the country who are affected by the volatility of palm and rubber prices.
The move, implemented in 2021, is seen to be able to ease the burden of this group besides restoring the settlers’ cash flow to cover their living costs.
A Felda Kemahang settler in Tanah Merah, Kelantan, Azizan Ismail, 35, said the abolishment provides relief to the settlers who are affected by the rising plantation maintenance costs and the inconsistent market price causing them to be burdened with debts.
Fellow settler, Ahmad Man, 65, of Felda Bukit Tangga in Bukit Kayu Hitam, Kedah, said he considered the waiver ‘a huge blessing’ that eases the burden faced by settlers and allows them to settle their debts.
“Originally, my loan was estimated to be about RM180,000, but when the government announced the waiver, my remaining debt is only about RM30,000.
“This shows that the government is always thinking about the plight of Felda settlers, (and it can) lighten my burden and allows me to meet the needs of my family,” he said, adding that his monthly loan repayment is now reduced to RM130 compared to more than RM1,000 before.
Zainudin Ibrahim, 61, of Felda Gedangsa, Kuala Kubu Bharu in Selangor who joined the programme in 1962 deemed the move as the right measure to help settlers who are facing difficulties due to the drop in palm oil prices.
“The selling price of palm oil this year has dropped to around RM700 per metric tonne compared to RM1,800 last year. Although the yields are quite high, many settlers are still suffering,” he said.
A settler from Kota Tinggi, Johor, Suradi Marjune, 60, said the initiative has indirectly allowed them to take home higher monthly income and save more, especially in the face of the rising cost of living.
However, he suggested that an information session should be held so that more settlers are aware of the loan waiver.
Melaka’s Felda Tun Ghaffar Menggong security committee secretary Ismail Ab Rahman said he hoped that a clearer explanation of the implementation mechanism could be held as things are still hazy for many settlers.
Currently, Felda has more than 120,000 participants in 317 settlements across the country.
Recently, Prime Minister Datuk Seri Anwar Ibrahim, who is also the Finance Minister, signed an agreement involving a government guarantee to Felda to restructure the agency’s loan, involving the reduction in the principal of Felda’s debt to financial institutions by RM7.9 billion which is seen to be able to lessen the settlers’ burden. – Bernama / pic TMR File