Groups representing second-generation Felda settlers say the raft of incentives announced for settlers yesterday is insufficient to address their problems.

In particular, they say the incentive by the government to partly relinquish replanting debts barely scratches the surface.

They added that some settlers face up to RM47,000 in interest payments alone.

"When the size of the debt is so large, it can take up to 20 years to pay back. At times, just as they are freed of that debt, they will be slapped with repayments for cost of living loans extended during the replantation period.

"The cost of living loans of RM1,000 to RM1,500 per month is usually for a period of seven to eight years.

"So, the incentive announced by the prime minister ... will not end the suffering of settlers who are saddled with exorbitant debts," said Mazlan Aliman (photo above, right), who heads Persatuan Anak Felda (Anak), in a statement.

Settlers take on loans for replanting and cost of living loans to sustain themselves while waiting for the trees to mature for harvest. Fluctuations in commodity prices at times mean that settlers do not make enough per month to cover the loans undertaken.

Prime Minister Najib Abdul Razak yesterday announced that the government will relinquish RM5,000 of such debt, plus any debt exceeding the RM40,000 threshold which pertains to operational costs of replanting.

Other incentives are:

  • A RM5,000 cash windfall per family;
     
  • Relinquishing debts taken up by settlers to buy FGV equity in 2012 at a ringgit-to-ringgit term (or RM1,820 cash for those who have settled their equity debts);
     
  • Replanting grants jointly disbursed with the Malaysia Palm Oil Board at RM7,500 per hectare until the year 2020; and
     
  • Allowance to build an additional home per lot to cater to expanding families.

Anak, which has been operational for more than a decade, was previously supported by PAS but is now linked to Parti Amanah Negara after Mazlan left PAS to join the splinter party.

Poor management of plantations

Mazlan's views are echoed by Suara Generasi Kedua Felda (SG2KF), a non-partisan group representing second-generation Felda settlers.

"We appreciate the commitment the PM has shown but we believe there should be an addition to the six incentives that are announced because they do not solve the basic problems faced in Felda settlements," the group's adviser Zulkifli Nordin told a press conference in Kuala Lumpur today.

He said the main issue faced by settlers is that the plantations are not well-managed and the settlers do not get regular financial statements and therefore cannot truly estimate the size of their debts.

"What we see is these two things have not been addressed and so these announcements are 'wow factors'. Every year there are 'wow factors'," he said.

The announcement yesterday was labelled as a pre-election tactic similar to the windfall disbursed before the 13th general election in 2013.

Asked of this, Zulkifli said: "We are not political and don't want to look at this issue from a political angle. We have been pushing on this issue for a while now and to solve this issue, we need the government of the day to address it."

Meanwhile, Mazlan reiterated Anak's proposal to alleviate settlers' burdens:

  • Forgive the debt of settlers by at least 50 percent of what is stated in the replanting costs statements;
     
  • Abolish the 6.25 percent interest on loans disbursed for replanting;
     
  • Review the loan terms of plantation development including the cost of fertiliser (which is allegedly pricey but of poor quality), and the cost of plantation maintenance;
     
  • Review the 2.5 percent service charge on personal loans for refurbishing homes etc; and
     
  • Hasten the process of replanting so settlers will not have to continue racking up debt while waiting.

Stop threatening settlers

Mazlan also cautioned against threatening settlers.

This is in reference to Najib's offer that the 17,000 settlers who have opted to privately run their plantations to return to Felda to enjoy the incentives.

The offer also extends to those who had sued Felda. Settlers have taken Felda to court for allegedly cheating them of yield payments for their oil palm crops.

These 17,000 settlers have six months, starting August, to meet the conditions set by Felda before they can qualify for the incentives, Najib said yesterday.

Umno Youth said this proves the PM's magnanimity in forgiving settlers who were misled by opposition quarters, while the incentives neutralise the opposition's attacks on the Felda front.

Mazlan said the act of excluding them or imposing other conditions on them for incentives is "discriminatory, cruel, un-Islamic and unconstitutional".

"The government should thank these 17,000 settlers for fulfilling what Felda was set out to do - they are no longer dependent on Felda," he said.

"The age of threats against settlers is over. Let's work together for betterment."

Additional reporting by Anne Muhammad.

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