Malay reserve land leased to Felda Global Ventures Holdings Bhd (FGV) may be held and controlled by foreign companies and individuals who may not be bumiputeras.

More than 40,000ha are involved in the listing exercise, said PKR director of strategy Rafizi Ramli.

NONE Referring to the lease agreement between FGV and the Federal Land Development Authority (Felda) on Nov 1 last year, Rafizi said there are questions over the validity of the lease and the status of the land.

This is especially because the listing prospectus notes that only 5.5 percent of the company's shares will be held by Felda settlers and staff, and the rest may go to foreign companies and individuals who may not be bumiputeras.

"The status of the land is questionable as it will be held and controlled by companies which are not fully bumiputera owned, so it goes against the laws governing Malay reserve land which aim to keep land in Malay/bumiputera hands," he said.

Pakatan states won't comply

He added that as land comes under state government jurisdiction, Pakatan Rakyat have decided to not issue land grants for the land in the states which it governs.

He said that of the 42,646.58 ha of Malay reserve affected, less than one-fifth are in Pakatan-held states of Kelantan and Kedah.

palm oil plantation 111005 The total Felda Plantations Sdn Bhd land which are to be leased to FGV numbers at 139,003.23 ha.

Pakatan, he said, has agreed not to issue land grants for any of the affected land under its jurisdiction, and any lease agreement made involving the land will be considered “illegal”.

As such, Pakatan does not reject the possibility of taking legal action if the “illegal” leasing occurs. 

“What usually happens is a citizen applies to purchase or change ownership of a Malay reserve land and the land office can reject it.

“But when the federal government makes an application, we go into unchartered territory so we need to look further at the finer details of the law,” he said.

Effects on share price

He added FGV's share price is likely to drop if Pakatan government succeed in keeping the land located in their states out of the listing exercise, which is due to take place on June 28.

“The bulk of assets to FGV is land, with a total valuation of RM17 billion. So if we take away land, the net value of the share will be affected.

“The (lease agreement) will only be finalised in two or three months. These are only lands pledged... It worries me that (the listing) is done in such a haphazard manner.”

Rafizi added that the lease agreement between FGV and Felda also notes that land which have not been granted to settlers for agriculture or for residential purposes is also included.

This includes land now used for schools, community centres, shoplots, fields and other ammenities.

“What guarantee does PM Najib Abdul Razak and (Felda chairperson) Isa Samad give that a private company like FGV won't decide to use this land for other purposes?” he asked.