KUALA LUMPUR, July 5 - The Felda Malaysia Youth Council (FMYC) believes that the 80 per cent cancellation of the settlers' debt amounting to RM8.3 billion as a result of the recent agreement signed by Prime Minister Datuk Seri Anwar Ibrahim will be able to help the agency gain more financial flexibility.

Its president Muhammad Fadzli Hasan said this will allow Felda, which was established on July 1, 1956, under the Land Development Ordinance 1956, to move forward and ensure that Felda prioritises the welfare and sustainability of its 112,638 settlers.

"This not only shows the government's commitment to the agency but also benefits the Felda administration, especially in improving its financial situation," he said when contacted by Bernama.

On June 28, the Finance Ministry said Prime Minister and Finance Minister Anwar has signed the government guarantee for the Felda Land Development Authority (Felda) to restructure the agency's loans to reduce the principal of Felda's debt to financial institutions by RM7.9 billion.​​​​​​

The restructuring will also reduce Felda's financial cost in terms of interest rates and enable Felda to cancel 80 per cent of the RM8.3 billion settlers' debt implemented in 2021.

The ministry said the government has agreed to provide a government guarantee to Felda in 2019 to enable the agency to implement its redevelopment plan under the transformation programme that began in 2020 for a period of five years.

Muhammad Fadzli also hoped that the prime minister will announce some good news to the people of Felda who are currently working on 317 land schemes nationwide during the national-level Felda Settlers' Day celebrations on July 7.

"For example, if possible, we request that the government stabilise palm oil prices and increase infrastructure development in Felda land schemes," he said.

He also hopes that with the appointment of Felda's new chairman, Datuk Seri Ahmad Shabery Cheek, the agency will be in a better position to deal with the current business challenges and that more community programmes will be implemented to strengthen relations between settlers.

Felda has introduced a land development model that includes land allocations and socio-economic support and is directly involved in land development and management.