FROM its humble beginnings in Lurah Bilut, in Bentong, Pahang, the Federal Land Development Authority (Felda) has transformed from an agency in charge of smallholders and settlements into a giant conglomerate with diversified business interests.
Felda, a government land development agency, was the brainchild of second prime minister the late Tun Abdul Razak Hussein.
It was established in July 1956, when land development and resettlement were seen as keys to economic growth and political stability.
Its main objective was to carry out land development and resettlement in new areas to create a prosperous farming community.
In the execution of its objectives, Felda devised “The Package Deal”, a strategy that sought to achieve, among others, full economic utilisation and development of unused or undeveloped parcels of land and the settling of qualified families on the land.
By the end of 1985, Felda had developed nearly 300 projects covering an area of 762,197ha and resettled 106,510 families.
From 1991 to 1995, Felda’s land expansion programme slowed down due to land shortage, high resettling costs and the government’s privatisation drive.
Thus, from 1990, there was no intake of new settlers, and a shift in its focus towards diversifying its palm oil business.
By 2005, Felda had developed 720,076ha of oil palm plantations, 86,183ha of rubber plantations, 4,881ha of sugar cane plantations and other crops.
Over the last 50 years, Felda has developed vast tracts of forest and thus changed the landscape of the country.
It was also successful in transforming the rural sector from subsistence-based agriculture to a more commercialised management system.
Among the major impacts of the agency’s land development activities was the creation of jobs for settlers, their dependents, contractors, suppliers and other related parties.
Also, with the opening of previously inaccessible areas like Grik in Perak; Gua Musang in Kelantan; and Raub and Triang in Pahang, which were hotbeds of communist activities, the influence of subversive elements on the rural population were contained and a measure of stability and peace achieved.
Felda was established to carry out land development projects and modernisation of the agricultural sector.
Having achieved its basic aim of giving land to the landless, its success in reducing poverty attracted the interest of numerous governments around the world.
The World Bank has testified that Felda had proven to be one of the most successful land organisations in the world and should be used as a model for other countries in Asia and West Africa.
In 2002, Felda established New Growth Centres, known as the Feldajaya Project. Its main objective was to prevent and reduce the migration of settlers and their dependents to urban towns.
The Feldajaya project offered settlers a choice of bungalows and terrace houses, as well as commercial premises. It comes with modern facilities and amenities, including schools, inland ports, recreational parks and small-scale industrial zones.
The houses were built according to modern contemporary designs as opposed to the traditional style, and injected elements of modernity and urbanisation into the Felda landscape.
Complete with its own utilities and public amenities, Feldajaya is a self-integrated township whose growth need not depend on the developments of the surrounding area.
With better roads being built in the last 10 to 15 years, the connectivity between Felda schemes and the outside world has improved dramatically.
New growth centres were established, namely Feldajaya Utara in Trolak, Perak, Feldajaya Selatan Raja Alias in Serting, Negri Sembilan, and Feldajaya Timur in Mempaga, Pahang.
As of 2009, the Felda Group now consists of Felda, which is responsible for the settlers and their small holdings, and Felda Investment Cooperative, whose role is to ensure handsome returns via investments in profitable projects and companies.
Meanwhile, Felda Holdings is one of Malaysia’s largest agro-based enterprises, overseeing a growing range of companies involved in agricultural, industrial and service activities not only in Malaysia but also abroad.
Prime Minister Datuk Seri Najib Razak launched Felda Global Ventures Holdings Bhd on July 1, 2009, to expand Felda’s overseas presence in plantations and other related businesses.
Felda Global Ventures took its first step overseas by buying 21,000ha of land in Kalimantan, Indonesia, to cultivate oil palm.
Other wholly-owned subsidiaries of Felda are Palm Industries Sdn Bhd, Felda Agricultural Services Sdn Bhd (FASSB), Felda Plantations Sdn Bhd and Felda Enterprises Sdn Bhd.
FASSB is the technical and advisory arm of Felda, providing the plantation owners and land scheme managers oil-palm related advice, research and development findings, fertilisers, planting materials and seeds, and product and consultancy services.
Besides business vested in plantations, Felda also offers catering services under Felda D’Saji Sdn Bhd, serving delicious food and five-star services at affordable prices.
Established in 1984, the company has continued to grow and is currently expanding into the Middle East, with the opening of five stalls at the food court in the Al Safwa building in Mecca, Saudi Arabia.
About 65 per cent of its 220 employees comprise children of the early settlers.
Felda D’Saji offers catering services for functions at Dewan Merak Kayangan and Dewan Perdana, which can accommodate up to 800 and 2,500 guests, respectively.
Felda also offers haj and travel packages under Felda Travel Sdn Bhd.