FELDA (Federal Land Development Authority) is a government
body - it belongs and works for all Malaysians - not just for the 'settlers' or
their families. [But now, are these poor folk that were uplifted by the FELDA
program from poverty into becoming now no more poor with the capacity for
on-going income generation...become 'too powerful' - so much so that the
UMNO-BN now must 'satisfy all their demands' OR risk losing about 50
Parliamentary seats in the next General Elections???]
Felda’s 112,000 settlers hold court in more than 50 parliamentary seats, making the organisation an important entity for the Government.
FELDA was a wonderful program - it identified poor and
landless Malaysians, gave them land for farming (oil palm/rubber/cocoa),
provided the required skill needed, and also gave them a living allowance
whilst they waited for their crops to bear income... FELDA helped with the
management and even sale...money earned went back to the settlers (who then
paid back the government(FELDA) the amount of monies advanced plus also monies
for the land/home. After this debt was repaid, the land and homes were
transferred into the names of the individual settler - Sadly, the government
STOPPED this program - and no new 'settler' was taken in since about 1990...SEE
FOLLOWING POST for a better understanding of FELDA
Should the 1956 FELDA Scheme to help the poor be re-introduced?
Out of Felda’s total landbank and excluding the 335,000ha held by FGV, another 475,000ha is appropriated to small land holders or Felda’s settlers, while Felda’s own managers operate the remaining 40,000ha of the plantation landbank.Felda is the single largest shareholder in FGV with 33%, while it has some RM2bil invested in the FIC.
FELDA AND FELDA GLOBAL VENTURES(FGV) IS SEPARATE AND
DIFFERENT
Now FELDA GLOBAL VENTURES HLDG BHD(FGV) is a private
company, and FELDA does not have more than 50% shares, and as such would not
have control over this private company...How many shares does FELDA have? Well,
they have only 21.25% of the shares. There is another company called 'Felda
Asset Holding Company' that holds another 12.42%, and if this company is 100%
owned by FELDA, then maybe we can say FELDA owns about 33%...
"Ramai orang tidak boleh membezakan antara Felda Global Ventures Holdings Bhd (FGV), sebuah syarikat yang disenaraikan di Bursa Saham, dan Felda sebagai sebuah badan pihak berkuasa iaitu lembaga yang ditubuhkan di bawah Akta Parlimen.
FELDA has set up other companies like FELDA Asset Holding Company...and Felda
Investment Corp (FIC) - The Auditor General will audit government departments
and agencies...but these 'private companies' may escape audit...is this the reason
our UMNO-BN government is keen in setting up these private companies?
The Cooperative (KOPERASI PERMODALAN FELDA MALAYSIA BERHAD)
owns about 5.5% - well, their members are the settlers(peneroka), the FELDA
employees and maybe the settler's family. Only 5.5% - well, this shareholder
will have a 'small voice' - certainly not big enough to insist who be CEO or
who be Director of FGV?
So, if look at the table below, we see that government or
government-linked entities have still a controlling - interest - about 53% plus
of the shares of FGV - despite EPF dispossing all its shares recently.
FGV has a land lease agreement with FELDA - and FGV manages
some of this FELDA land 335,000ha . Remaining FELDA's own land is 40,000ha of
the plantation landbank.
Now, the settler's land is different, that is '475,000ha is
appropriated to small land holders or Felda’s settlers. As such, FGV is not
managing the settler's land?
So, why is the settlers(and their children) so concerned
about FGV - maybe, it is because vide their Cooperative, they own 5.5% of FGV?
FELDA assets and profits belong to the people of Malaysia -
not just the 'settlers'. ...so, we, Malaysians need to be very concerned as to
what is happening in FELDA and its various 'private companies'...
We must protest if all of FELDA's income is just going to
the settlers - the settlers is only entitled to the profits from their own land
- that 475,000ha...
If the owner is working on his/her land, more profit will be
made comapred to someone who is 'outsourcing' the work on the land to third
parties - Is this what is happening with the FELDA settlers? Who is working the
land? The farmers...or 'migrant workers' and 'third party companies'?
Shahrir: No decision yet on FGV land lease termination
Felda chairman says priority is on refining land lease termination so it benefits both Felda and FGV.
KUALA LUMPUR: The Federal Land Development Authority (Felda) says it
has not finalised any decision on terminating Felda Global Ventures
Holdings Bhd’s (FGV) current land lease agreement (LLA).
Chairman Shahrir Abdul Samad said the matter was now under
consideration as there was much information and questions that needed to
be looked at and discussed in depth.
“We have not made any decision yet and will continue negotiations
with FGV on the approach that can assist in terms of increasing Felda’s
income and earnings for the benefit of FGV itself, as we (Felda) are a
major shareholder in FGV.
“We don’t have a date or timeline that we are working for because we
have to refine this issue so that the benefits can be enjoyed by both
Felda and FGV,” he said to the media after launching the D’Saji Ramadan
Buffet preview here today.
Shahrir said the matter was initially open for discussions as Felda
was looking at options for restructuring its business components,
including the LLA land, in order to increase its sustainability and
revenue.
Felda’s interest in FGV is about 34% and the latter managed around 335,000 hectares out of Felda’s total landbank of 850,000ha....FMT News, 25/5/20117
Monday, 17 April 2017
Felda chairman unhappy with returns from its investments
Last
year, the total income of the settlers amnounted to RM3.97bil. It is an
economic powerhouse. We want to continue the philosophy of balanced
rural development while also empowering the people,” Shahrir(pic) said
in an interview after 100 days as chairman of Malaysia’s most
influential government entity
KUALA LUMPUR: The
Federal Land Development Authority (Felda) seeks better returns from its
slew of assets to help run programmes for settlers.
Three months into his appointment as Felda chairman, Tan Sri Shahrir Abdul Samad (pic) said that the next two years would be crucial for the government entity and its 112,000 settlers.
“Last year, the total income of the settlers
amounted to RM3.97bil. It is an economic powerhouse. We want to
continue the philosophy of balanced rural development while also
empowering the people,”
he said in an interview after 100 days as
chairman of Malaysia’s most influential government entity.
He felt that the returns from the assets held by Felda must be improved significantly compared with what it was yielding.
Towards this end, he wanted the management of public-listed Felda Global Ventures
Bhd (FGV) and the Felda Investment Corp (FIC) to improve returns to
their shareholders. Felda is the single largest shareholder in FGV with
33%, while it has some RM2bil invested in the FIC.
FGV contributes about RM300mil to Felda
annually, including RM250mil under a land lease agreement while the
returns from the FIC are a far cry from what other government-owned
funds are contributing.
On the FGV, Shahrir said that he wanted to
see the company go back to its core competency in managing plantations
and improving returns to its shareholders.
“The returns can be improved. We used to own
the plantations (currently held by FGV) and we know what kind of
returns that can be given to the shareholders.
“They have to look at ways to improve. They
can collaborate with other plantation companies to increase profits. As
the major shareholder we want to see better returns.”
On the FIC, Shahrir said that for the RM2bil
invested in FIC, it was not giving the desired returns after three
years of underperformance since being incorporated in 2013. FIC has
investments in hotels, properties and listed-companies.
Shahrir said he has made changes to the
board of FIC. He had asked the previous board to resign due to the
company’s disappointing performance.
“I leave it to the new board to decide on
investment matters. It comprises industry professionals and most of them
are outside of Felda...so there are no inherent conflicts. They will be
accountable for FIC’s future performance,” he said.
He pointed out that Koperasi Permodalan
Felda (KPF), the co-orperative owned by members and management of Felda,
returns about 10% annually to its members on a fund size of RM2.5bil.
KPF’s returns are mainly derived from savvy investments in the equities
market as well from property ventures.
Felda has an annual budget of between RM2bil
and RM3bil to fulfil its obligations towards the settlers ranging from
housing to education and assistance in managing land.
Aside from FGV’s contributions of around
RM300mil to Felda and up to RM1bil from the monetisation of assets,
Felda makes a gross income of over RM200mil a year from the 40,000ha of
plantation that it owns and manages. The agency expects to receive
RM650mil more from collection of advances and other investments this
year, according to Shahrir.
“We may consider a long-term sukuk to fill
the funding gap. That way we can repay some loans and reduce the
interest cost burden,” he said. He also pointed out that the deal to
acquire a stake in Indonesia’s Eagle High Plantations Tbk has nothing to
do with Felda’s current funding needs.
“It is purchased and financed by the
Government. It is just parked with us because we are the palm oil
experts. As for Felda or FGV’s involvement, it will be decided later,”
he said.
Felda’s 112,000 settlers hold court in more
than 50 parliamentary seats, making the organisation an important entity
for the Government.
Shahrir replaced Tan Sri Mohd Isa Abdul Samad as Felda chairman in January. Isa remains the chairman of FGV.'
On a separate issue, Shahrir shot down
assertions that Felda has neglected its duties to settlers as alleged by
opposition politicians. He said that over the past five years, Felda
has distributed RM227.4mil in dividends paid out by FGV to the settlers –
equivalent to RM2,187 per settler.
“Settlers’ income is returned 100% and Felda
does not charge any management fees. The only deductions we make are
from the advances that we give to settlers to help them during the the
period when their palm trees are still growing,” he said.
FELDA GLOBAL VENTURES HLDG BHD
List of Substantial Shareholders as at 28 April 2017
| No | Names of Substantial Shareholders | No. of shares | % |
|---|---|---|---|
| 1 | LEMBAGA KEMAJUAN TANAH PERSEKUTUAN (FELDA) | ||
| Share held in CDS account as follows:- | |||
| 1) Own Account | 655,988,300 | 17.98 | |
| 2) Maybank Securities Nominees (Tempatan) Sdn Bhd | 44,041,500 | 1.21 | |
| 3) Maybank Securities Nominees (Tempatan) Sdn Bhd (Felda 2) | 25,000,000 | 0.69 | |
| 4) ABB Nominees (Tempatan) Sdn Bhd | 30,000,000 | 0.82 | |
| 5) HLIB Nominees (Tempatan) Sdn Bhd | 20,000,000 | 0.55 | |
| 775,029,800 | 21.25 | ||
| 2 | FELDA ASSET HOLDINGS COMPANY SDN BHD | ||
| Share held in CDS account as follows:- | |||
| 1) Own Account | 452,921,192 | 12.42 | |
| 452,921,192 | 12.42 | ||
| 3 | LEMBAGA TABUNG HAJI | ||
| Share held in CDS account as follows:- | |||
| 1) Own Account | 283,710,100 | 7.78 | |
| 2) CIMB Islamic Nominees (Tempatan) Sdn Bhd | 690,800 | 0.02 | |
| 284,400,900 | 7.80 | ||
| 5 | KUMPULAN WANG PERSARAAN (DIPERBADANKAN) | ||
| Share held in CDS account as follows:- | |||
| 1) Own Account | 250,378,300 | 6.86 | |
| 2) Citi Group Nominees (Tempatan) Sdn Bhd (I-Vcap) | 3,060,600 | 0.08 | |
| 4) Citi Group Nominees (Tempatan) Sdn Bhd (DiPerbadankan)(CIMB Equities) | 12,561,500 | 0.34 | |
| 5) Citi Group Nominees (Tempatan) Sdn Bhd (DiPerbadankan)(CIMB PRNCP ISLM) | 2,170,300 | 0.06 | |
| 6) Citi Group Nominees (Tempatan) Sdn Bhd ( Affin AM B SQ) | 1,000,000 | 0.03 | |
| 269,170,700 | 7.37 | ||
| 4 | KOPERASI PERMODALAN FELDA MALAYSIA BERHAD | ||
| Share held in CDS account as follows:- | |||
| 1) Own Account | 200,663,408 | 5.50 | |
| 200,663,408 | 5.50 | ||
| 6 | KERAJAAN NEGERI PAHANG | ||
| Share held in CDS account as follows:- | |||
| 1) Maybank Nominees (Tempatan) Sdn Bhd | 182,407,575 | 5.00 | |
| 182,407,575 | 5.00 | ||
| Shareholding | 30-Apr-17 | 20-Feb-17 | 30-Dec-16 | 31-Oct-16 |
|---|---|---|---|---|
| Malaysian | 89.10% | 89.16% | 89.40% | 88.00% |
| Foreign | 10.90% | 10.84% | 10.60% | 12.00% |
| Total | 100% | 100% | 100% | 100% |
Saturday, 29 April 2017
Felda to unravel FGV deal?
Massive
landbank: A Felda estate in Sungai Siput. About 335,000 ha from Felda’s
total landbank of 850,000 ha are currently run by FGV under a land
lease agreement (LLA) which was established in 2012.
A MAJOR reshuffle is on the cards for the Federal Land Development Authority (Felda) and its plantation arm, Felda Global Ventures Holdings Bhd (FGV), that could see the emergence of a new shareholder in the latter.
Felda is said to be seeking the return of
the land that is currently leased out to and managed by FGV because it
feels that it can extract higher returns.
At the same time, FGV is also likely to see a new shareholder emerging.
According to sources, the party is said to be an investment vehicle led by Wilmar International Ltd co-founder Martua Sitorus.
“The strategic partner may either simply acquire the shares or inject plantation assets into FGV or both.
“The latter option would suit FGV since it
will need a new plantation landbank to work on for its upstream
operations should Felda take back its land,” says a source familiar with
the negotiations.
Recently, Felda chairman Tan Sri Shahrir
Abdul Samad stated that it needed to boost its revenue base and income
source, as it requires at least RM2bil to RM3bil annually to carry out
its programmes for settlers.
Shahrir also said that it was not happy with the returns from the land being managed by FGV.
New developments planned by the agency
include an ambitious affordable housing scheme for settlers, as well as
for the construction of new staff quarters. The housing scheme to
provide 20,000 units is estimated to cost it some RM500mil a year.
About 335,000 ha from Felda’s total landbank
of 850,000 ha are currently run by FGV under a land lease agreement
(LLA) which was established in 2012.
If the plantations are transferred back to Felda, it would mean that the LLA between the two parties will come to an end.
On the other hand, FGV had in the past
repeatedly expressed its desire to renegotiate the terms of the LLA. The
cost associated with the agreement is a huge crutch on FGV since it
distorts the group’s efficiency metrics as well as its net income
margins (see sidebar).
New ideas
Felda has been exploring new ideas to
squeeze more out of its investment assets and maximise its investment in
FGV. This proposal is a more cost-effective way to retake FGV’s
landbank as opposed to an outright privatisation exercise, which would
cost billions of ringgit.
In a recent interview with StarBiz,
Shahrir expressed concern over FGV’s slow progress in achieving greater
efficiency. He mentioned that bringing the landbank back into Felda was
one way of expediting this as part of his “balik asal” (back to the
roots) philosophy.
In a related development, it is believed
that Felda could also explore reducing its stake in FGV that currently
stands at about 33%. In this respect, one name that has emerged as a
possible buyer is Sitorus.
Last month, Wilmar announced that Sitorus
was stepping down as the group’s executive deputy chairman and would be
redesignated as a non-independent non-executive director. Such a deal
makes sense for both Felda and FGV. With a new landbank to operate on,
FGV can compete on an even playing field with its peers, as it no longer
has to pay the RM250mil fixed payment to its parent.
Out of Felda’s total landbank and excluding
the 335,000ha held by FGV, another 475,000ha is appropriated to small
land holders or Felda’s settlers, while Felda’s own managers operate the
remaining 40,000ha of the plantation landbank.
If it is able to secure a brownfield
plantation landbank to work on, FGV can also benefit from the lower
average tree profile of its crops, as well as lower expenses from
replanting efforts. The group will also retain its downstream
operations, its trading and logistics business as well as its sugar
business.
It is currently not known whether Felda’s
stake acquisition in PT Eagle High Plantations Tbk – which owns a large
tract of brownfield land - will come into play at some point. However,
it is believed that FGV may participate in a managerial capacity in
Eagle High at some point.
As for Felda, the agency would be able to
consolidate the landbanks in a bid to improve efficiency.
By doing this,
it can enlarge its revenue base and income source, something Felda
sorely needs to achieve its ambitions.
At the same time, the agency would have to
bear the cost of replanting in order to improve its landbank’s age
profile of around 15 years. FGV has spent more than RM200mil annually in
order to replant at a rate of 15,000ha a year. Despite this, around 37%
of the landbank under its control still has an old age profile of 21
years or more presently. However, the added cash flow contributions from
running its own landbank will help Felda in future fundraising
exercises, especially if it intends to raise debt. Shahrir has said that
the agency may consider a sizeable long-term sukuk for working capital
purposes and for repaying existing loans.
Read more at http://www.thestar.com.my/business/business-news/2017/04/29/felda-to-unravel-fgv-deal/#xOzbrqdkWh1HA6cB.99
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