KUALA LUMPUR: The announcement on the appointment of Tan Sri Shahrir Abdul Samad as the new Federal Land Development Authority (Felda) chairman shortly after the 2017 New Year celebration has put the man under the spotlight.
Attention has since focused on the Johor Baru Member of Parliament embarking on tasks and shouldering responsibilities in helming the federal government agency which has often made headlines for various issues involving the interest of Felda settlers nationwide.
It came as no surprise when Shahrir, 66, in his first comment as he assumed the office, pledged to look after and safeguard the interest of 112,000 settlers, as well as to strengthen the role of Felda.
“I have asked the management to focus on its original responsibility. We have to intensify our focus and assistance to the settlers as their farms are the source of their income,” he said on his focus for Felda.
Shahrir, who has vast experience in government administration, used to serve as minister at three ministries. He was also once the chairman of the Malaysian Palm Oil Board (MPOB) and Public Accounts Committee (PAC).
The following are excerpts from an exclusive interview with Bernama at his office in Menara Felda, here, recently.
BERNAMA: Felda currently has to deal with a lot of issues and negative perception. How does the agency plan to tackle this?
SHAHRIR: The way I see it, the problem being faced by Felda is more of perception and misunderstanding as many people cannot differentiate between Felda Global Ventures Holdings Bhd (FGV), a listed company on Bursa Malaysia, and Felda as an authority body established under an Act of Parliament. So, there is misunderstanding and confusion not just at the settlers’ level but also among business leaders.
For instance, I met an acquaintance who is a highly knowledgeable businessman (in the world of business). He was angry at FGV, saying ‘Why did FGV buy a hotel in London?’ I replied, ‘It wasn’t FGV but a subsidiary of Felda’.
Meaning, the people who are supposed to be well-rounded in business with a pretty stable position and highly recognised within the business community in Malaysia can also get confused, don’t understand and cannot differentiate between Felda and FGV. Our responsibility is to explain which is which. I am the Felda chairman while Tan Sri Mohd Isa Abdul Samad is FGV chairman.
FGV is a public-listed company in Bursa Malaysia, so it has to adhere to all the governance requirements by Bursa Malaysia as a public company. As for Felda, we must adhere to the Act and move along in accordance with the Felda Act itself.
Felda also has its own subsidiaries because it has the authority to establish such subsidiary companies. So, these subsidiaries have to be taken care of by the Felda board or Felda itself.
BERNAMA: But as the largest shareholder, Felda cannot really decouple itself from FGV?
SHAHRIR: Of course as the largest shareholder in FGV, we want to see FGV succeed. It can forge ahead, can manage the business well. But it is still a separate body. Felda cannot interfere in the running of FGV because FGV is a company which has its own rules and approaches. Felda holds the highest equity in FGV, naturally we have an interest which is to see FGV progress in all its affairs.
BERNAMA: Does this mean Felda will rebrand itself in a way that people will see Felda and FGV as two different entities, especially for the settlers?
SHAHRIR: This needs greater work (information dissemination), it means I also must bring this message down. I must explain to the settlers and the business community (on the difference between Felda and FGV). If you go to the FGV website, you can see the company profile. All the information on FGV is there. For the business people and general populace who are interested in FGV, they have to start finding information on FGV.
Our responsibility in Felda is to provide information continuously. I see Felda’s role as though it did not give attention to what it was founded for. I’ve asked its management to focus on this. We have to pay more attention to assisting the settlers’ farms, because these farms are their source of income. . If we say that the role of the smallholders and settlers is in the rural economy, so be it. The fact is, we must give clearer and more effective attention to the settlers’ farms.
BERNAMA: Does this mean that Felda has deviated from its original purpose?
SHAHRIR: Because people are focusing more on the listing of FGV, they might be confused. What happened was that when Felda let go of FGV, FGV acquired Felda Plantation land, which was previously Felda’s land with no settlers such as oil palm estates and others. So the Felda land was leased to FGV with a payment of RM250 million a year, and 15 per cent of the profits from the farms.
So previously, Felda had settlers, there were estates and downstream activities such as refineries and logistics, as well as other businesses.
(Now) all of these have been transferred to FGV. What’s left with Felda is the settlers, and of course the social and welfare responsibilities pertaining to the settlers. So if we look at it, after the separation between FGV and Felda, Felda was only left with the settlers....a situation which may lead to confusion.
Not to say there is wrongdoing by any party, but it seems to have lost focus. It’s known that when it (FGV) was listed all kinds of things happened like a drama, such as the change of director-general, the issue of Koperasi Permodalan Felda Malaysia Bhd, and many others.
When such a drama occurred, it led to a situation where we might have overlooked (things). Whereas in reality, Felda was left with only the 112,000 settlers and their families. Similarly, there are problems with being a 60-year-old organisation, as of course there is the second generation and so on. Adding to that, Felda as a community would for sure have other side issues.
If we go back to the question of Felda looking after the settlers, it means we need to focus on the settlers’ farms and also the problems concerning the second generation of Felda settlers.
Besides that, we also have to determine our ability to fund these activities, because previously, we had estates which brought returns to Felda. Now, we are left with Felda Investment Corporation, which was established to carry out business so as to generate additional income for Felda.-- BERNAMA