Govt looks to strengthen FELDA, restore settlers’ confidence

21 Jan 2026, 10:07 AM
Govt looks to strengthen FELDA, restore settlers’ confidence

KUALA LUMPUR, Jan 21 — The government is implementing seven measures to ensure the welfare and protect the interests of Federal Land Development Authority (FELDA) settlers, including by strengthening the agency’s legal mandate, said Deputy Rural and Regional Development Minister Datuk Rubiah Wang.

She said that among these measures are legislative reforms, such as to the Land (Group Settlement Areas) Act 1960 to streamline FELDA’s roles.

“This step also aims to clarify the legal relationship between FELDA and settlers, as well as to align the existing legal framework with the needs of the new generation of settlers and the current economic landscape,” she said during a Special Chamber sitting at the Dewan Rakyat today.

She said this in response to a supplementary question from Datuk Mohd Isam Mohd Isa (BN-Tampin) about the government’s steps to restore settlers’ confidence in FELDA and ensure their voices are heard.

Rubiah said the government is also strengthening coordination between FELDA and its subsidiaries so the entire group can move with a uniform strategic direction, a more structured organisational framework, and higher operational efficiency.

“This approach aims to optimise the use of resources, avoid overlapping functions and improve the overall performance of the FELDA group,” she said.

She added that resolving legacy and legal issues is also a priority, including by addressing inherited burdens such as contract litigation claims and deferred obligations that have affected FELDA’s financial position.

“A negotiated settlement and restructuring approach is being implemented to reduce long-term risks and restore institutional stability,” she said, adding that emphasis is also being placed on clarifying land issues and ownership structures.

Rubiah said the government is also holding discussions with state governments on issues related to FELDA land ownership and administration, as clear land status is crucial to facilitate plantation operations, expedite the implementation of development projects, and attract strategic investors for the benefit of settlers.

Meanwhile, she said financial restructuring is also being undertaken towards FELDA’s stronger financial position through improved operational returns, optimisation of cost structures and more disciplined cash flow management.

“This includes enhancing plantation management efficiency and strengthening FELDA’s core businesses,” she added.

Rubiah explained that these comprehensive approaches are believed to be able to restore settlers’ confidence in the FELDA institution and ensure their aspirations are addressed in a consistent, structured manner.

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