Malaysia confronts tough challenge in debt-hit Felda

How KL proceeds in Felda case could provide a template for other scandal-hit state entities

Felda is a politically sensitive agency because of the huge role it plays in the lives of Malaysia's largely rural dominant Malay community.
Felda is a politically sensitive agency because of the huge role it plays in the lives of Malaysia's largely rural dominant Malay community.PHOTO: NEW STRAITS TIMES

A deepening crisis at state-owned plantation group Felda is shaping up into the first of many financial bailouts facing Malaysia's Pakatan Harapan (PH) government in the coming months as it moves to fix a troubled public sector.

FGV Holdings, Felda's subsidiary which listed on the Malaysian stock exchange in June 2012, declared a net loss of RM1.08 billion (S$359 million) at end-December last year, a sharp reversal from a net profit of RM130.9 million it declared in 2017, the company announced last week.

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A version of this article appeared in the print edition of The Straits Times on March 05, 2019, with the headline 'Malaysia confronts tough challenge in debt-hit Felda'. Subscribe