Kuala lumpur: The Federal Land Development Authority (Felda) has announced the issuance of government-guaranteed sukuk valued at RM3.72 billion, along with government-guarantee revolving credit-i (GGRC-i) totaling RM5.2 billion as of September 30, 2025. This significant financial move is part of Felda’s strategic efforts to enhance its financial stability and operational efficiency.
According to BERNAMA News Agency, Deputy Prime Minister Datuk Seri Ahmad Zahid Hamidi, who also serves as the Minister of Rural and Regional Development, stated that the total sukuk issued amounts to RM8.92 billion. He further mentioned that the maturity period for the GGRC-i is set for June 2027. This information was disclosed in a written reply published on the parliament’s website, addressing a query from Datuk Ku Abd Rahman Ku Ismail (PN-Kubang Pasu) regarding the future direction of FGV Holdings Bhd following its delisting and the loan terms imposed by the government for acquiring FGV shares.
Ahmad Zahid elaborated that following FGV’s delisting from Bursa Malaysia in August, the company’s primary focus is on restructuring its operations and organization to enhance efficiency, competitiveness, and sustainability over the long term. As the largest shareholder, Felda aims to ensure that FGV remains dedicated to generating sustainable cash flow, with consistent returns being reinvested to strengthen Felda’s financial standing and protect the welfare of settlers.
Additionally, the consolidation of FGV’s operations with Felda is anticipated to achieve economies of scale, particularly in the procurement of essential plantation inputs such as fertilizers, pesticides, and equipment. This integration is expected to yield substantial cost savings, thereby alleviating the financial burden on plantations and settlers’ lots.
FGV is also directing its efforts towards expanding its value-added downstream businesses, including oleochemicals, palm-based food products, biodiesel, and renewable energy. This strategic expansion is projected to stimulate new growth and enhance value-added contributions to the national economy.