Selangor Journal

Felda mulls liquidating RM2.2bil of assets

Photo taken from mStar.com.my

By Selangor Journal Staff

KUALA LUMPUR: New board members of Federal Land Development Authority (Felda) have prepared several measures in targeting a turnaround within the next two years.

Chairman Megat Zaharuddin Megat Mohd Nor said the methods include restructuring bank loans as well as selling of some of the company’s domestic and international assets.

“We’re working to monetise our assets in London, namely a hostel, apartment. Also hotels in Kuching and Kota Kinabalu with some land in certain places.

“We are also looking to restructure some of our loans,” he said.

Speaking to reporters during a special media briefing at Menara Felda earlier, Megat Zaharuddin said the said assets could roughly be worth RM2.2 billion.

He said funds obtained from the procurement would then be used to pay off RM8.025 billion worth of debts to government agency.

He added, Felda is hopeful that its debts could be cut down to RM6.5 billion by the end of 2018 through the disposal of assets.

Megat Zaharuddin, former chairman of Malayan Banking Bhd was appointed to his current post at Felda on July 1.

Upon taking over the company, he explained that the biggest challenges facing Felda was the almost depleted cash flow position as a result of loans taken from banks.

“The company will be submitting a white paper to the government to be tabled at the next parliamentary sitting,” he said.

In August, Economic Affairs Minister Mohamed Azmin Ali said he would be presenting a White Paper on Felda in the October parliamentary sitting, to lay out Felda’s financial position.

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