The National Felda Settlers' Children’s Association (Anak) has proposed that the government reclaim Felda assets leased to FGV Holdings Bhd to revive the agency.
Anak chairperson Mazlan Aliman said Felda owned 320,000ha of land which had been leased to FGV, and once recovered, could earn the agency up to RM1 billion a year.
Mazlan, who is also chairperson of the Farmers' Organisation Authority (LPP), said that taking back the assets was better than taking loans to revive Felda.
"Instead of taking a loan to restore Felda, it is better if the government 'bails out' the land (from the land lease agreement).
"I understand that the 'bailout' will cost about RM2.5 billion," he told reporters after a paying a courtesy call to Malacca Chief Minister Adly Zahari in Ayer Keroh today.
Mazlan said proposals by certain quarters for the government to take up new loans would not be appropriate, as it would burden the government, which is already paying interest on older loans.
He noted that with the takeover, Felda could increase its revenue streams and further strengthen its cash flow.
He added that Felda also had 68 oil palm processing factories operated by FGV.
"If we can take back the plants and land from FGV, I am confident that the Pakatan Harapan government can restore Felda within five years," he said.
Mazlan said the matter had been discussed and viewed positively by the government, and that a white paper would later be presented in Parliament.