Saturday, June 10, 2017

FELDA belongs to Malaysian - settlers entitled to profit from their 475,000ha? Holding UMNO-BN hostage - 50 Parliamentary Seats?


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'?

FELDA(Federal Land Development Authority) is a government body - it belongs and works for all Malaysians - not just for the 'settlers' or their families.


Shahrir: No decision yet on FGV land lease termination

Bernama
 | May 25, 2017

Felda chairman says priority is on refining land lease termination so it benefits both Felda and FGV.
shahrir-felda-fgv-1

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
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%
Source:-http://www.feldaglobal.com/investors/substantial-shareholders/


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.
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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