Beleaguered Federal Land Development Authority , which has been hit by massive losses in billions and liquidation of several subsidiary companies, is confident of returning to the black by the financial year 2022 through the implementation of a new business model.
On the new business model, Idris said Felda believed the right business model for the agency moving forward is to have a complete supply chain from farms, mills to downstream. Under the Land Lease Agreement between Felda and FGV, Felda should receive a payment of RM248 million per year and profit share of 15% for lease of its commercial land for a course of 99 years.
As an alternative to debt restructuring, Idris said Felda intends to issue sukuk and this will be discussed with the government as the guarantor and the amount to be issued will be announced later.