Newly-appointed Federal Land Authority (Felda) chairperson Shahrir Samad's first test is whether he will cancel the controvesial purchase of Eagle High Plantation (EHP) Indonesia, said PKR Youth.

"We believe Shahrir, as the new chairperson, does not have the baggage of the previous management's wrongdoings and is able to stop the EHP deal, which clearly deviates from Felda's objective of providing a better life for the settlers.

"By immediately overturning the decision to acquire the stake in EHP, Shahrir will prove he will not sell off Felda and is not under the thumb of people with vested interests," PKR Youth information chief Lee Chean Chung said in a statement.

Lee also urged Shahrir, who is also BN's Johor Bahru MP, to consider Felda's RM6.1 billion debt as of 2014, leaving cash assets of only RM685 million.

"The only way Felda is purchasing EHP is through a loan and this would worsen its financial position," the Semambu assemblyperson said.

The acquisition has been cause for controversy as the 37 percent stake in EHP does not come with management control of the land banks.

The price per share was more than twice what the shares are worth in the open market, prompting CIMB chairperson Nazir Razak to urge Felda's board of directors to justify the acquisition.

In response, Felda said the purchase is sound and is a gateway to access the Indonesian domestic market of 260 million people.