KUALA LUMPUR: The Federal Land Authority (Felda) has incurred unrealised losses of approximately RM2.06 billion that came from its 21.25 per cent direct stake in Felda Global Ventures Holdings Bhd (FGV).
Deputy Minister in the Prime Minister's Department Datuk Razali Ibrahim said these losses as of June 30, 2017, were not recorded in Felda's financial statements, as FGV was classified as an associate to Felda.
"Felda's holdings in FGV is recorded as an 'investment in associate' where FGV is recorded at a cost of RM3.38 billion in Felda's financial statement for the year ending Dec 31, 2016.
"FGV has paid RM328.33 million to Felda as dividend on the FGV holdings," he said in a written reply to Dr Ko Chung Sen (DAP-Kampar) in Dewan Rakyat, today.
Ko had asked the Prime Minister to state the amount of money Felda has invested in FGV and Felda Investment Corporation Sdn Bhd (FIC), the present value of the investment and the total amount of profit or loss made.
As of June 30, 2017, Razali said FIC, a wholly-owned subsidiary of Felda, had been given a capital injection of RM500 million.
He also said government had no plans yet to privatise FGV as it was listed on Bursa Malaysia and was subject to the regulation of the Securities' Commission.