KENYATAAN AKHBARPRESS RELEASE
PARTI KEADILAN RAKYAT
FELDA SETTLERS’ WINDFALL IS ONLY 9% OF THE TOTAL GAINS TO BE MADE BY FELDA FROMFGVH’S IPO; SETTLERS SHOULD BE GIVEN A 50-50 SHARE OF THE GAINS
PKR has completed the financial analysis of the gains receivable by FELDA from the plannedInitial Public Offering (IPO) of FGVH. Our review shows that FELDA stands to gain about RM18.7billion from FGVH’s IPO. The gains are in three parts:1.
Cash from share sale of 1.2 billion FGVH: RM5.6 billion2.
40% equity stake in FGVH: RM6.8 billion3.
RM500 million a year lease payment for 99 years; net present value @ 8% discount rate:RM6.2 billion
The windfall payment of RM1.7 billion (RM15,000 x 112,635 settlers) is a dismal 9% of thegains to be enjoyed by FELDA
. A share of 9% is unfair and inadequate. We wish to remind thePrime Minister, Dato’ Seri Najib Tun Razak, that one of FELDA’s primary objectives, is to striveto ensure the settlers are able to enjoy a decent level of prosperity.We are also aware of “market talk” that FELDA will be transferring Felda Asset HoldingsCompany (FAHC) to Koperasi Permodalan Felda Malaysia Berhad (KPF). At the moment FAHC isa wholly owned company of FELDA and at IPO it will own 17% of FGVH. If indeed FAHC istransferred to KPF in the coming weeks, the windfall plus the FAHC equity will amount to RM4.6billion. The sum appears to be large, but in percentage terms, the settlers may get only 25% of FELDA’s total gains (inclusive of potential transfer FAHC) from FGVH’s IPO.So we ask yet again: Why is FELDA keeping the bulk (75 or 91%) of the gains? Why are settlersconsistently being offered a bad deal?We reiterate our belief that the windfall for settlers ought to be around RM50,000 perhousehold; to be more precise, RM53,000 per household. With the payment of RM53,000 persettler household plus ownership of FAHC, our analysis shows that the settlers would get amore fair 50-50 deal from FELDA. A 50-50 deal is fair. We challenge PM Najib to be fair to thesettlers. He should stop favouring an over-politicised FELDA, run by Tan Sri Isa Samad. FELDAneeds to be freed of politics and politicians; and settlers need to be treated with respect andfairness.
WONG CHENCHAIRMAN, INVESTMENT & TRADE BUREAU
11 MAY 2012