The Federal Land Consolidation and Rehabilitation Authority (Felcra Berhad) has allocated RM20 million in allocations to subsidise payment of student loans from the National Higher Fund Corporation (PTPTN) over the next 10 years.

Prime minister Najib Abdul Razak in his speech at Felcra's 50th anniversary celebrations today said the annual allocation of RM2 million would benefit 500 children of settlers who are pursuing their higher education.

"I would like to announce that Felcra will be providing a 20 per cent or RM4,000 discount from the total loan taken by each student.

"For that purpose, Felcra has allocated RM20 million over the next 10 years, involving 500 students each year," said Najib, adding that 5,000 students are expected to benefit from the initiative by 2026.

Further, Najib said, this was on top of guaranteeing that all children of Felcra settlers who applied to further their studies at Felcra colleges would have their loans approved by PTPTN beginning next year.

Najib said the initiative was announced in recognition of the need to develop children of Felcra settlers as the nation's future human capital.

The agreement was signed between Felcra and PTPTN, represented by its chairperson Shamsul Anuar Nasarah.

Aside from the agreement with PTPTN, Felcra also inked two other agreements with government-linked corporation Sime Darby Plantation and Universiti Malaysia Perlis - as part of its strategic cooperation plans for next year.

In his speech, Najib also touched on Felcra's role as the agency to drive Putrajaya's effort to reduce food import, which last year amounted to RM45.4 billion.

"Felcra is serious in becoming the agency leading the food security industry because no party has stepped up to deal with the scenario seriously and professionally," Najib said.

Felcra chairman Bung Mokhtar Radin in his opening address had requested the government to recognise the settlers' efforts at meeting demands for domestic produce.

Present at the event were Rural and Regional Development Minister Ismail Sabri Yaakob and the top management of related agencies.

Some 7,000 Felcra settlers from its projects nationwide were also gathered for the ceremony held at the Dewan Tun Razak 1 in PWTC here.

The Felcra project was first introduced through an Act of Parliament in 1966 during the time of Najib's father, Abdul Razak Hussein, involving 1,500 hectares of land and some 4,500 settlers.

After 50 years, Felcra was corporatised in 1997 and now involved more than 200,000 hectares nationwide with over 100,000 settlers.