The government will set up Felda Investment Cooperative 2 (KPF2), with an initial fund of RM10 million, to assist  the new generation of settlers to be involved in the business activities and development of Felda's companies.

At present, the new generation of Felda settlers are not allowed to become members of Felda Investment Cooperative Bhd (KPF), set up on July 1, 1980.

"The government realises that the new generation of settlers want to be involved in Felda's economic activities. In fact many of them want to be partake in Felda's business developments via a cooperative movement," Prime Minister Najib Razak said in a statement today.

He said KPF2 would focus its activities on the physical development of Felda settlements besides holding a specific equity in Felda's various businesses.

Highest earner of all cooperatives

    

However, it will not compete with Felda Investment Cooperative but complement its existing operations.

"As such, on behalf of the government, I will like to invite the new generation of settlers to be involved in KPF2 and become invovled in the various investment activities of Felda subsidiaries.

"The government hopes this initiative would be welcomed by new Felda settlers nationwide to help secure and improve the economic status of their families," Najib added.

At present, Felda settlers invest in KPF which holds a 51 percent shareholding in Felda Holdings.

To date, KPF with a membership of 189,415 and a share capital of RM1.2 billion, has been able to increase members' income via attractive annual dividends and bonus.

It declared an average dividend of 14 percent annually, the highest declared by any cooperative in the country.    

- Bernama