The six incentives totalling RM1.6 billion to aid Felda settlers are derived mainly from its internal funds, according to Deputy Minister in the Prime Minister's Department Razali Ibrahim.

A huge chunk of the money – RM 1.42 billion – came from Felda while RM166.7 million came from the government’s coffers, he added.

He was responding to Gooi Hsiao Loong (PKR-Alor Setar), who had enquired about the source of the incentives.

"The prime minister announced six incentives totalling RM15.89 billion to Felda settlers.

"From that amount, a total of RM14.22 billion of Felda's internal funds were used, while RM166.7 million was allocated from government funds, which was channeled through the Malaysian Palm Oil Board (MPOB) as replanting incentives," said Razali in a parliamentary reply dated Aug 8.

However, he added that not all the incentives given involved cash handouts, as some of it involved adjustments in Felda's accounts.

This included replanting debts which were written off, a special replanting overdraft debt disposal fund, the writing-off of a Felda Global Ventures equity loan, and approval for Felda settlers raising families to build more than one house on a site.

On July 23, Najib had announced six incentives, which included debt disposal, incentive payments, special funds, grants and housing incentives for Felda settlers.

Persatuan Anak Felda (Anak) had responded by claiming the “wow factor” incentive would not resolve the problems faced by the settlers.

Additionally, PKR vice-president Rafizi Ramli had released a statement two days after Najib's announcement.

Rafizi urged the government to reveal the source of the funds for its incentives, as he believed Felda did not have that kind of money to spend.

"Najib should list out where his government got the money so that the settlers do not fall victim to BN's propaganda," said the Pandan parliamentarian.

In another parliamentary reply dated Aug 7, Razali said Felda had taken out a loan totalling RM2.62 billion from 2014 to 2016.

"Felda acquired RM25.12 billion of assets between 2013 and 2014 and there was no purchase of assets in 2015 and 2016. This included the purchase done by its subsidiaries," he said.

"Up until today, Felda has yet to dispose of these assets to any party," he added.