social and economic change, I stand firmly behind the recommendations put forward by experts such as Ahmad Ibrahim, Zaid Ibrahim, and Fatimah Arshad regarding the urgent need for an overhaul of Felda. The current state of the federal land development agency is unacceptable, and it is high time for the government to take bold and courageous steps to turn things around, for the benefit of Malaysia’s settlers, the palm oil industry, and the nation’s economy as a whole.
A Call for Courageous Political Will
Ahmad Ibrahim, a seasoned palm oil expert, has aptly highlighted the immediate challenges that Felda’s reform will pose, including the potential hardship for settlers and the political risk of losing votes. However, as an advocate for change, I believe that this is a crucial moment for our politicians to show true leadership. Political will must prevail, even if it means making difficult decisions in the short term for the long-term betterment of the country.
We must acknowledge that reforming Felda is not just an economic necessity, but a moral imperative. We need to prioritize the welfare of our settlers and the sustainability of our industries, even if it causes temporary inconveniences. Only by being brave enough to implement these changes can we ensure a thriving future for Felda and the generations to come.
Maximizing Resources and Addressing Waste
One of the most alarming statistics presented by Ahmad Ibrahim is the shocking 80% waste of harvested oil palm fruit. This is an area where immediate action must be taken. I strongly support Ahmad’s suggestion to tap into this waste, turning it into valuable by-products like wood-based materials, fertilisers, and animal feed, which could significantly increase settlers’ income. This is not just about improving efficiency; it’s about transforming waste into wealth, creating a circular economy that benefits both the environment and the settlers.
The government must invest in technologies and infrastructure that allow for the efficient processing of oil palm waste, and Felda must work with the private sector and international partners to create a new market for these by-products. This is a golden opportunity to not only boost Felda’s profitability but to also position Malaysia as a leader in sustainable palm oil production.
Rethinking Land Ownership and Productivity
Another issue raised by Ahmad Ibrahim is the practice of land ownership by settlers, which has led to fragmentation and a decrease in productivity. I agree wholeheartedly with this assessment. While the intention was to empower settlers, the outcome has been counterproductive. The practice of subdividing land for the second generation has undermined the efficiency and profitability of Felda’s operations.
In line with Ahmad’s suggestion, I believe the government should reconsider the policy of land ownership and instead explore land leasing models that encourage more productive and larger-scale farming. This would ensure that the land is used optimally, increasing yields while benefiting the settlers in the long run. Moreover, allowing for land consolidation would also enable settlers to take advantage of economies of scale, increasing their income potential.
Addressing Felda’s Debt Crisis and Privatisation
Zaid Ibrahim’s concerns about Felda’s massive debts cannot be overlooked. Years of mismanagement have led to a situation where Felda’s operational efficiency alone will not be enough to address its financial woes. Drastic measures, including the privatisation of certain parts of Felda’s operations, must be considered. While this may be a difficult decision for some, it is essential to take bold steps to ensure Felda’s long-term viability.
I also suggest that the government create a strategic plan to manage Felda’s debts, possibly through debt restructuring or by selling off non-essential assets. Only by addressing the financial burden will Felda be able to focus on innovation and growth in the future.
Empowering Settlers through Co-operatives and Digital Transformation
I fully support Fatimah Arshad’s proposal for the establishment of a “new-generation cooperative” that empowers Felda’s 112,000 settlers. The co-operative model, as seen in successful international examples like India’s Amul dairy cooperative and New Zealand’s Fonterra, offers a promising solution to ensure fair pricing, stable incomes, and market access for smallholders.
Felda must embrace digital transformation by incorporating smart mills, e-business strategies, and digitized platforms that will allow settlers to manage their farms more effectively and access global markets. Furthermore, settlers should be encouraged to take on more control over palm oil processing, farm management, and even futures trading, which will increase their involvement in the higher value-added segments of the industry.
A Vision for Felda’s Future
As an activist who has dedicated my life to promoting social and economic justice, I firmly believe that the future of Felda lies in empowering its settlers. The suggestions put forward by experts should serve as a roadmap for reform, but we must go further. The government must invest in education and training for settlers, empowering them with the skills necessary to manage their own businesses and land more effectively. We must also look at ways to integrate Felda’s operations with Malaysia’s larger economic goals, ensuring that the agency is a part of a more sustainable and diversified economy.
The time for action is now. Felda’s reforms are critical not just for the agency’s survival, but for the future prosperity of Malaysia’s settlers and the palm oil industry as a whole. By taking bold steps to address waste, rethinking land ownership, managing Felda’s debt, and empowering settlers through cooperatives and digital transformation, we can turn Felda into a model for other land development agencies globally.
I stand with the experts in supporting these reforms, and I call on the government to act decisively and implement these changes for the betterment of Felda, its settlers, and the future of Malaysia