A QUESTION OF BUSINESS | Prime Minister Najib Razak’s six incentives (see table below) worth at least RM1.6 billion announced on Sunday besides being morally reprehensible for blatantly wooing Felda voters using government funds, may even constitute as bribery under the Election Offences Act.

Najib announced these incentives at a politically charged speech commemorating 61 years of Felda in Putrajaya where he said the support of the Felda community resulted in the government remaining in power. “We will definitely defend Putrajaya,” he shouted to scattered applause, and apparently referring to the opposition, “... Don’t dream and don’t trumpet your wishes that the Felda community does not support the government.”

And Najib made political capital too at the event by reminding the 20,000-25,000 settlers present there that it was his father, Abdul Razak, who was behind Felda and launched it in 1956, 61 years ago.

Most of the Felda incentives represent write-off of debts (RM947 million) while the remaining RM652 million represent grants, of which RM167 million will be paid over five years.

Najib also said he was giving a chance to 17,679 settlers who had not sold their products to Felda and who had sued Felda, to return to the fold.

"However, we are giving them a six-month period starting from next month to cooperate with Felda and to fulfil the requirements set," he said. He said the settlers who returned to cooperate would be eligible for the six incentives beginning from February 2018.

Why Felda is important

According to various reports and experts, parliamentary seats where Felda settlers are a majority - or are significant - number 54 out of a total of 222, a quarter of the total. If half of these seats or 27 seats went to the opposition this time around, and the other seats remain unchanged, the opposition will win the elections.

In the 2013 elections, the opposition took 89 seats to BN’s 133. If 23 more seats went the opposition’s way, that would have been enough for a change of power to have taken place.

Recent reports indicate that the opposition may have made inroads into Felda areas. Considerable media attention over corrupt practices at Felda, which saw major changes at the top recently and the suspension of its CEO pending investigation, is likely to have influenced Felda settlers negatively.

The drop in the price of Felda Global Ventures (Felda’s listed arm) which Felda settlers bought at an issue price of RM4.55 in June 2012, now languishing at around RM1.70, wiping out three-fifths of value, is likely to have added to settlers’ discontent. The write-off of part of the debt incurred in some of these purchases announced by Najib is aimed at reducing some of the ire of the settlers...