The government will focus its resources on reviving Felda through its previously announced RM6.23 billion rescue plan rather than on handouts.

Economic Affairs Minister Mohamed Azmin Ali said this when asked if Felda settlers would be receiving allocations this Hari Raya Aidilfitri as per recent years.

"As of now, we do not have (plans to distribute Hari Raya allocations) because we want to channel money to the Cost of Living Loans and Advance from Yield schemes first.

"I met with Felda last week. We want to ensure that all the money must be channelled (to these schemes) before Hari Raya,” he told the media after attending an iftar event at the Surau Jabal Nur in Taman Seri Gombak tonight.

The government previously allocated RM2 billion for the two schemes.

Elaborating, Azmin said the government will prioritise long-term measures to fix the embattled agency.

"It is already a challenge for the government to come up with RM6.23 billion, given our debts," he said.

"We do not want to spend money (on things) which will not benefit Felda settlers.

"We will give priority to sustainable, long-term solutions, and not on piecemeal, unhelpful measures."

The Felda White Paper tabled in Parliament last month revealed that the agency was RM12.1 billion in debt as of 2017.

Alternative crop pilot to begin after Raya

Also included in the rescue plan is the Felda New Model, which encourages settlers to plant crops other than oil palm and rubber.

Today, Azmin said that a pilot programme involving the planting of alternative crops will begin after Hari Raya, in either Pahang or Johor.

The Economic Affairs ministry will be working with the Agriculture and Agro-based Industry Ministry and Felcra to implement the programme.

"Two weeks ago I met with Agriculture Minister Salahuddin Ayub and had a strategic meeting to see how we can collaborate.

"Because under the Agriculture Ministry, there is the Federal Agriculture Marketing Agency (Fama) and also the Malaysian Agricultural Research and Development Institute (Mardi). 

"They have all the expertise and the research and development to offer to Felda," he explained.

The new business model will also see Felda rent and utilise land from settlers on a long-term basis.