Part 1: FELDA – The smell of easy money
Part 2: FELDA – The smell of easy money
Part 3: FELDA – The smell of easy money
- In the last 3 parts, I wrote a serial that basically covers the past, present and planned future for FELDA-A, Koperasi Permodalan Felda (KPF),Felda Holding(FH) and Felda GV (FGV). As indicated previously, the public don’t see the line that separates the Authority, the Holding company, the cooperative and Felda GV. They see it all as Felda. Because of that it is easier for those in power to do what ever they want especially when the common person i.e. the Chairman sits on all four entities. That would compromise any arms length decision-making process. The many naïve KPF members and settlers would probably trust the system as they had before but they failed to realized that the new system is entirely different from the old one and their interest is not in the business of resettlement of rural poor into newly developed areas. The unwritten game plan is about milking the cash cow!
- In Malaysia especially those companies controlled by politicians, it has been repeatedly shown that via “related and unrelated party transactions” money can change hands. It is all above board and at arms length. There will be some people who make money and the main company will be left high and dry. Any parties that controlled the board would be able to handpick the CEO. Beyond that between the chairman and a handpicked CEO, a lot of magic can happen. Everything would be above board and very legal. Will the same fate happen to the new consolidated FGV? While it is everyone guess but based on historical experience in businesses that involves Malaysian politician shows that this appears to be certain. I believe RR in his many recent disclosure shows a typical “related party transactions” that is legal and above board. For this reason, in my humble opinion, KPF members should worry. They should worry gravely.
- Prior to Jan 1990 FELDA-A was in the business of resettlement of rural poor into newly developed areas. The UN acknowledged it is one of the best poverty eradication in the world. Unfortunately, this ceased because the government felt it was a costly business. The business of poverty eradication may not be cheap but it has major impact on the nation. There will always be poor people around because the cost of living is on the rise. It was wrong for the government to stop the resettlement program. Today Shahrizat Jalil mentioned that the government spent RM102.5 mill to help 57,905 people in Selangor. That works out to RM1770 per person. That is a paltry sum compared to RM250 mill was used to enrich one already rich family in another agriculture project. Don’t you think so? Someone who is impartial need to do a social service and advice the 220,000 KPF members what they are getting themselves into. This can only be done via a systematic and a major education program where they must be educated on their rights.
Ramai yang tida tahu atau yang tidak mahu tahu akan structure FELDA.Kalau hendak di senaraikan bukan nya FELDA .Syarikat syrikat Felda munkin bolih di senaraikan.Yang selalu di canangkan FELDA hendak di senaraikan kerana mempunyai pengeluaran yang berbeliun beliun dan mempunyai asset 800,000 hectar tanah ladang.Tanah milik peneroka yang jumlahnya lebih 500,000 ha bukan asset FELDA tetapi hak milik Peneroka, pendapatan dan pengeluaran felda adalah sebahagian besarnya hak peneroka ia itu dari tanah milik mereka. dan tidak bolih dikatakan asset FELDA HOLDINGs kerana bukan asset FELDA HOLDINGS,FELDA HOLDING baru di ujudkan ,saya tah tahu apa asset yang ada.Mungkin FELDA HOLDINGS mahu peneroka menyerah kan dan mengadaikan tanah mereka untuk di kira asset FELDA HOLDINGs ini mumgkin bolih atau mungkin mustahil.kerajaan kena rujuk balik principle meujudkan FELDA dan Acta Penubuhan FELDA.
Kita kena jawab adakan kita mahu satelah lama kita memajukan orang MElayu dan Malaysia kita mahu harta orang MElayu di beli dengan mudah melalui pasaran saham ,dan bolih di beli dan di ambil alih olih sesiapa juga pelabur luar negara termasok orang Yahudi.Orang MElLAYU patut jangan jadi bodoh patut berfikir panjang
Dear doc,
You’re a prolific writer. Was out for a few days and you wrote 3 more detailed piece on Felda. I’ve read all you wrote and some comments.
My take is as follows:
1) the scheme benefits kpf. In more direct words ie settlers. They hold shares in fgv.
DR-R – The restructuring only give KPF 61% without board control. On paper having 61% is good but without management control and poor historical performance of FGV does not give a strong reason for KPF to get involved. If I am KPF and if i want to go into business, I would chose a strong partner. This marriage has a clear goal and that goal is not in the best interest of KPF
2) too many people wearing same hat including ISA and Datuk Zul. That’s why I think not many are clear which one interest should prevail.
DR-R – Dato Zul is a government servant who is apolitical person. The same cannot be said about Isa
3) isa’s issue is to me a logistic issue. kpf chairman has never been from peneroka. If settlers don’t like chairman you can change him like whats happening now.It’s a Personality and political issue so im not dabbling on t merits yet. Suffice to say members should be able to change their board and worse case change their bye laws.
DR-R – Isa goal is politics and money. To ensure that if this merger is viable and good for everyone and independent assessment is required. Based on inside info KPF consultant/advisors has advice not to proceed with the restructure
4) wrote somewhere earlier I think Isa push this too fast without buy in yet from all stakeholders.
Doc my take on Felda is that were perpetuating subsidy mentality. Not saying right or wrong. Knew some settlers who are decent And hardworking and I think they deserve some help. But on the other hand saw some in Anak who wants all land bonuses control etc ie thru easy money just because they’re sons of Felda. We need to strike a balance here.
DR-R – What subsidy? Can you give details for the period after Jan 1990
I’m clear this listing will benefit kpf and settlers. I think you’ve not touched on assets injection and valuation yet for a more comprehensive picture. I don’t understand why we need to further help the settlers. Do they need it? As it is if you look at Felda A operation they’re doing a lot of social obligations for the settlers already. This is the point were missing. Were doing populist things without limit. Bn pushing this to benefit settlers for election. Pr objecting this because of Isa. If anyone other from UMNO/bn helms kpf especially from pr it suddenly becomes acceptable?’this can’t be.
DR-R – Your reasoning is inaccurate
To do this doc ie to find the balance we need to analyse and see what the settlers get also. Then we can draw the line. Unreasonable demand we reject. I thought the current balance pre listing is already favoring settlers. But once given there’s no way to retract. We should not allow easy money for settlers. There’s been instance they got windfall
DR-R – I have explained. Having 61% of a weaker organization and without management control is a disservice to KPF board and its members
From sellling their lands. Built swimming pool and bungalows and within a couple of years run out of money. What happen is that they seek help again from govt.
To me Felda is a complicated issue with too many parties wearing too many hats. To my mind it’s a very successful model benefitting the settlers. If bn wants they could Plunder this without the complicated listing exercise. Listing makes it more subject to transparency rules of bursa. That’s why Isa is a logistic issue to me. What’s more of a concern is why were doing this for settlers again? Will they get more easy money to live beyond means and less toil? Would the social benefits they obtain be reduced or do they still expect the various payouts and subsidies to continue? There is a trickle down effect I agree but the previous instances Of wastes and dependance are not encouraging. We need to look into the model we want. To do listing just to benefit kpf (settlers) is just not enough justification. To object just because of Isa is also not enough.
DR-R – You misunderstood the issue. Its not about Isa per se but about the lousy business deal which is being pushed down the throat of KPF and Isa is the head honcho of the whole process
No doc. There are injections of prized assets which will make it more than profitable. What’s happening is a merged of business between the three. If it’s listed I believe all analysts will say it’s an excellent buy which in my mind will benefit settlers. No two ways on this.
Issue on kpf and isa is a valid issue but its not a major one. As I said many people are wearing too many hats. If you look at kpf it’s run all the while by Felda A officers. Office bearers are the same with Felda A management. They’re there because of their position in Felda A. Whenever there’s change management, there’s a change as well. In any event if settlers don’t like isa they can vote him out.
On governance at fgv, I think those who object Isa doing improper easy mOney dealing should support listing. Why? Because there’s a huge governance compliance procedure to be followed by a listed company. It will be absolutely transparent with penal sanctions. In terms of governance, being a listed co is much preferred for those seeking accountability and transparency.
Since assets injection will benefit fgv and kpf is a majority shareholder in fgv it follows that it will benefit settlers. What about management control? All the while Felda A has been “controlling” KPF, it makes not much difference if FGV being “control” by Felda A. With due respect i think settlers should do what they do best. Felda A office bearers all the while including Dato Zul have been “guiding” kpf on macro level and my view let it continue. I’m not saying isa is good but if settlers don’t like him they can kick him out. On governance, being a listed company is the best pedestal of governance. Everything will be accountable and transparent. We need only one share to kick a fuss at shareholders meeting.
Despite the above, I do not necessarily agree with listing. My point is that the main issue is still why we need to be populist all the time. I see easy money in anak’s demand. Settlers have gotten a lot. I would rather prefer they be paid exceptional bonus for the produce rather than easy money to those not toiling at the scheme. I’ve not decided where the balance lies and willing to explore this further.
Raffick,
How much more pint of blood you are going to vomit engaging such folks? I believe such folks’ intention is clear. Convince some guillible folks & if all things fail confuse.
Remember the Razaleigh Kadazan’s headgear.
Raffick,
Furthermore, some people has fallen into the syndrome called Stockholm syndrome. Why do we need to save UMNO? Over & over again. Having so much discussions onto this or that, hoping UMNO would react or respond favourable
To end this : Watch this! An irony that british soldiers under Japanese capativity, building a bridge for Japan in WWII. Rather we should put more effort in sinking BN-UMNO. Sak is doing it. Aspan Alias is doing it. They are UMNO members
Kadir Jasin said “The drive for economic gains must never undermine nor compromise the basic concerns of people and society….”
Please permit me to reproduce below ad verbertim Sakmongkol AK47 write on this Felda issue..
” Kebimbangan yang paling mendesak ialah adakah kepentingan peneroka dalam FH akan terjamin, sebaik sahaja kepentingan tersebut di urus oleh FGV? Ini yang kita kena tanya. Jangan mudah terpedaya dan ternganga dengan presentation graphicals, warna warni dan powerpoint effects. Cuba soal-apa yang FGV akan lakukan yang bebeza daripada yang sedang mereka lakukan? Jika mereka ada ‘senjata ajaib’ baru, kenapa mereka tidak amalkan untuk menguntungkan FGV dalam perniagaan mereka sendiri? Kenapa rugi?
Kepakaran baru? Bakat pimpinan baru? Ilmu baru? Ada cara luar biasa dan ajaib?
Jika mereka boleh menjanjikan kaedah luar biasa lagi ajaib, kenapa perkara tersebut tidak di lakukan keatas perniagaan nya sekarang? Bukankah dengan melakukan apa yang di janjikan untuk IPO, FGV boleh menghasilkan keuntungan keatas perniagaan mereka sekarang? Kenapa tidak di lakukan? Adakah itu punca FGV kerugian 500 juta?
Ini yang puzzling. FGV says it will bring the listed vehicle to new hieghts and make profits. So how come, it hasn’t applied those profit enhancing strategies on its current business? Surely, kita expect, if they have done that, the track record of FGV would have been very assuring.
Cerita kelentong sana sini- bagaimana produktiviti boleh meningkat dan karut marut- semua cerita tersebut boleh di reka reka. Kita kena match dengan realities. Lagi pun, kalau kita cerita tentang produkviti dalam bisnes perladangan dengan buat tabulation dan graphs sana sini- bukan kah itu semua bisness yang sedang di lakukan oleh FH holding sendiri? Itu bidang bisnes mereka yang mereka tentu ada lebih kepakaran daripada FGV. Kita hendak lihat apa FGV boleh lakukan kepada bidang bisnes mereka sendiri. Bidang orang lain yang orang lain lebih pakar dari kita, jangan lah kita sibuk hendak cerita.
Kita kena tanya, apa tujuan IPO? Ianya bertujuan untuk raise capital dari langganan pembeli awam. Bila orang beli, wang masuk dan harga saham naik. Selalu nya mula mula naik. Ramai orang bikin wang. Tapi selepas masa seronok?
Dalam kes ini siapa yang hendakkan modal? Jawab nya FGV. Kenapa FGV mahu modal dari pasaran saham? Kos nya berapa? Adakah kos itu( dalam bentuk jaminan kadar pulangan) lebih baik atau buruk, jika FGV pinjam sahaja duit dari pasaran bank? Atau pinjam sahaja dari Felda yang di katakan banyak duit. Atau pinjam dari EPF kerana EPF pun selalu beri pinjam dan wang nya di pinjamkan pada kadar yang baik. Jika FGV dapat pinjam pada kadar 2% tidak kah ini pada kadar yang terbaik?
Apa FGV mahu buat? FGV akan labur dalam portfolio yang macam macam. Gerenti untung kata mereka.
Apa rekod untung FGV? Takde. Sebab dalam pelaburan yang mereka urus dan lakukan sendiri- mereka rugi. Tapi pelaburan yang mereka lakukan dalam Felda Holdings untung. Tapi itu is a different matter. Itu cerita Felda Holdings bukan cerita FGV. Sebab FH di bawah pengurusan nya sendiri mencatat keuntungan. Jadi FGV nak leverage atas keuntungan yang orang lain buat untuk mereka sebagai asas buat IPO. Binawe punya orang. Kita ingat dia mahu tunjukkan intrinsic record dia sendiri- rupa rupa nya, menumpang atas rekod orang lain- FH.
Jadi apa isiu nya? Isiu nya ialah dalam FGVH nanti, siapa yang mengurus portfolio bisnes? FGV yang ada rekod rugi kah yang akan urus? Jika ya, maka masa depan kepentingan peneroka dalam FH akan muram. Perlu kita ingat, sekarang FH diserapkan dalam perniagaan FGV. Dan ingat- FGV punya rekod- buruk.
Ini yang mendatangkan keresahan. Bukan kita suka suka tentang. Ada asas untuk rasa gelisah dan waswas. FGV leverage atas kekuatan orang lain . jadi mana mungkin ia mendatangkan keyakinan kepada kita dan peneroka bahawa perniagaan yang mereka akan urus akan untung? Rekod mereka tak bagus.
Jadi jangan kita sentimental dalam kes penyenaraian Felda. Ada keluarga yang datang dari kalangan peneroka. Kita identify dengan harapan dan kesusahan peneroka. Itu sikap politically correct. Takkan kita hendak menyebelahi kapitalis. Tentu kita sokong rakyat marhaen- para pak tani. Tendensi kita ialah menyerang sesiapa yang kita rasa mengacau kepentingan peneroka felda.
Tapi kepentingan peneroka is best served dengan strateji pelaburan yang betul. Kepentingan mereka selama ini, elok di bawah FH. Mulai sekarang, ia di letakkan di bawah pengurusan FGV yang kerugian. Beritahu kepada kita, adakah kepentingan peneroka di perlakukan dengan tanggung jawab? “
Very good questions asked but find it oxymoronic. If sakmogkol really question fgv business practices wouldn’t it be better for it to be listed as it’s more transparent and has much better governance structure.
Actually I don’t understand why FH be main vehicle for settlers interest. Currently it’s Felda A. They have enough income and resources. Perhaps you can clarify.
The manner that BN bulldozing this deal is unprofessional. I suspect they hope big windfalls for FELDA settlers selling their shares in the stock market. There will be instant millionaires tat will be indebted to BN for GEs to come.
Ultimately going public will put an end to FELDA’s poverty eradication programme as public companies put scoail responsibility at the most bottom.
Rocko,
Felda has been relying on the dividends from Felda Holdings Bhd to sustain its activities.
How is is by FGV going public, Felda ceases it poverty eradication programme? As long as FGV can give the same amount of dividends to Felda, it can still continue. Though I feel Felda should be closed afterall, there are no more settlers being settled. Now it is the issue of the 2nd and 3rd Generations. Why should Govt continue to spoon feed these people.
The reality too is that KPF is getting the shares and not the Felda Settlers and Employees. Please check the structure. KPF will still remain the cooperative that it always have been.
The reality is this fight is between the management of Felda and the politicians. I feel both are equally inept!
Observer
FELDA has stopped its poverty eradication program in Jan 1990. It was decision made by the government as they felt they cannot manage the high cost involved.
Going public is no longer about poverty eradication. FH buys the product from farmers. Why is that spoon feeding. The farmers are complaining that they are not happy selling to FH as the price is lower than if they sell to independent millers.
The issue is politician wants to get into the business of Felda for their own financial and political reasons.
Jika Felda Holdings membuat RM 700 juta tahun lalu, tidakkah lebih lojik jika Felda Holdings yang di senaraikan?
Kenapa pemilik minority dalam FH yang beria ria mahu menyenaraikan FGV seolah olah untuk menyelamatkan diri nya sendiri kerana telah mencatat kerugian lebih 500 juta? It does not make sense.
Biarkan FGV yang di miliki 100% oleh Felda menjalankan perniagaan yang mereka buat sekarang.
Jadi kalau saham jatuh,taklah teruk sangat pukulannya. Lagi pun saham2 itu tetap berada ditangan peneroka,daripada dimiliki orang lain.
mdnor,
You are one hella of a peneroka….., you know where it will eventual land.
Brova…, keep up and up the antenna…, let’s teach guys that Felda Novice .., cannot be taken for a ride.
md nor –
saya juga setuju .. jika penyenaraian felda hendak di teruskan – teruskan tanpa felda holding dan KPF..!
boleh kah? apa modal FGV nak pancing semua bakal subscriber IPO?
kita lihat MSM sudah laa.! – http://bit.ly/tSwVbz (click utk lihat chart)
mana pergi harga pada paras IPO? seminggu selepas listing – harga melonjak ke paras 6,.10.., dan kemudian menjunam ke paras terendah 4.21..
harga sekarang> sekadar 4.80.. dan trend menunjukkan penurunan dan sideways saja.
Jadi – hentikan lah iklan2 yg mengatakan – kalau listing – harga felda pasti akan naik berlipat kali ganda dan peneroka pasti akan dapat lagi durian runtuh! semua tu kelentong dol hancing belaka!
Yang paling bagus sebenarnya – biarkan felda ni di jalankan perniagaan nya oleh KPF – memandangkan rekod operasi KPF ni sangat baik (era sebelum ISA ni datang tak malu menerjah lah!)
Kalau lah felda ni di jalankan perniagaan nya secara koperatif.. seperti mana ladang2 besar di luar negara yg di tadbir secara kooperatif setempat.. pasti peneroka akan dapat hasil lebih baik.. pada masa harga komoditi getah dan sawit meningkat tinggi.. dan peneroka tak perlu nak berhutang-hutang dgn felda dah… pasti dh lama abis utang.. dan hak milik mmg patut dapat lama dah.. takde ler modal penyangak2 ni nak masuk felda lagi.
Doc..
I would like to share with the readers what ‘JMD’ wrote about “Azman Mokhtar Must Go Now (Part 3).”[jebatmustdie.wordpress.com]
Quote: “The most favourite word of a consultant (and investment banker) is corporate restructuring.
Restructure this and that. Hoping for a synergy of sorts. But restructuring a business on paper via equity transfers are not the only solution to make a business more viable. Any businessmen would know that. But the bosses in Khazanah are not businessmen. Trying to meddle in operations when you have close to zero knowledge about the business is a disaster waiting to happen.” Unquote.
If it can happen in the brainiest Khazanah … so what is Felda!
Yes… we owe a duty of care to KPF members and we have already highlighted our views and concerns. The rest is beyond us. We are totally impotent when it comes to controlling the shenanigans of the financial mafia.
Zul
I agree with you.. In my personal basis while researching to write about Felda, ALL the people that I talked to disagree with the merger. The problem is they cant seem to do much as they have resigned to the fact that their board will make the decision
Doc,
So what do you expect..? Just keep writing ….and put more pressure since most of the public are talking.
Your blog can make a difference…, just ask MT and MK to carry it too.., so can MI..?
It will stir the hornets nest…., are leave some nasty ..greedy Malays holding to their Balls.
what merger? there is a merger of FGVH? is it with FHB? is that possible? what merger? do tell!
Doc,
Quote: “Someone who is impartial need to do a social service and advice the 220,000 KPF members what they are getting themselves into. This can only be done via a systematic and a major education program where they must be educated on their rights.”
It is like putting salt into the sea. Where ever you have Felda settlers, it is a BN stronghold in that constituency. It is a fortress that is that you cannot siege.
All settlers are DOCTRINE to believe that only BN is able to support them and has given them a livelihood, good education for their children, easy loans, subsidies, double digit dividend etc etc. Vote opposition at your own peril. Lose your livelihood, if you do so.
Settlers would not bite the hand that feed them. Jangan seperti kacang lupakan kulit. It is a fitnah to think what you have been thinking of, doc. Tidak kenang budi.
Constituencies like these are sub-divided into many constituencies to increase the number of MPs, so that a regime could remain in power. Will the Election Commission make any adjustment to the huge DISPARITY in voters between urban folks and Felda constituencies. The huge disparity of voters is nothing to do with gerrymandering. Gerrymandering is about equal numbers of voters but in favourable outcome. The above is CHEAT or in Bahasa we call it TIPU. Today, The Star, gave a big headline, 5 changes to poll. Gosh! This is to trick the Rakyat that the Election Commission is doing something. Yeah, that is something, chicken feed matters.
This is the last frontiers for the political awareness that we must conquer. If we break these frontiers, the frontier of the settlers which they have conquer with their sweat and blood, that would be the end of UMNO.
Doc. , It does make sense to the mind…., RM 1770 to 26,000 0dd families yet a stupid Government can hand a stupid figure like RM 250 Million to a corrupt (deleted by admin) family while pulling strings with a corrupt PM..?
The PM is corrupt..and is tainted…with some Girls…, and yet we have a Mamak who approves him like licking his rear..so that his son will be a DPM/PM product..?
Wishful Thinking..? The mamak will die beyond the prison walls…, he is not God.., he’s just another idiot.? Bila kena baru tahu..? And MAMAK DIsserve it on a stupid PLATTER. …, let’s get the play to start.