Malaysiakini News

FGV will continue to support smallholders, says CEO

Bernama  |  Published:  |  Modified:

FGV Holdings, is proud of its roots: Malaysia’s first smallholders programme was established under the Federal Land Development Authority (Felda). As such, FGV will continue to support and champion the cause of all smallholders.

FGV had its genesis in Felda and until today continues to work closely with smallholders and settler families, offering the critical link between farmers and the marketplace.

FGV is acknowledged as one of the largest supporters of smallholders in the world, said group president and chief executive officer Zakaria Arshad today.

"Today, six years after FGV’s listing on Bursa Malaysia, Felda remains our largest shareholder and an important stakeholder, as are the settlers," he said in a statement in reference to an article published by Berita Harian online titled 'FGV Holdings, jangan guris hati peneroka' (FGV Holdings, don't hurt the feelings of settlers).

Zakaria also said that FGV is determined to champion the cause of all smallholders on the international stage, especially at a time when the industry’s licence to operate was being challenged for a number of reasons.

"FGV has always respected the position of our smallholder suppliers, including the settlers and will work hard to preserve and strengthen the bond we have with them," he said, adding that the company supports more than 112,000 settlers who produce and supply a third of its fresh fruit bunch.

Another third of FGV’s production comes from 350,000 hectares of plantations that are managed by FGV under a land lease agreement (LLA) with Felda, Zakaria pointed out.

FGV pays Felda RM250 million annually for the lease of the land.
In addition to that, FGV also shares 15 percent of its annual profit from the LLA-related land with Felda.

"Every year since our listing, FGV has never failed to pay dividends to its shareholders," he said.

Zakaria also clarified that as of June 1, KPF (Koperasi Permodalan Felda Malaysia) owns 5.15 per cent or 187,966,608 shares in FGV and not 800 million shares as reported.

"We will continue to work towards ensuring all shareholders benefit from FGV’s growth and success," he added.

- Bernama
 

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