RM36m diesel subsidy a year for Sabah Felda settlements

8 Jul 2023 • 11:59 AM MYT
Daily Express
Daily Express

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SERDANG: Prime Minister Datuk Seri Anwar Ibrahim announced several initiatives and incentives to improve the quality of life and preserve the welfare of Felda settlers, including providing infrastructure, healthcare, digitalisation and housing.

Among the announcements made by Anwar was the Rahmah Health Contribution (SKR) which involves an allocation of RM21.21 million, the construction of a hemodialysis centre with an allocation of RM21 million, expenses for the cost of operating streetlights with financial implications of RM7.7 million per year, and a diesel subsidy of RM36 million a year for three Felda settlements in Sabah.

He also announced the Digital Madani programme to empower the gig economy, resolutions to issues with regard to the Felda New Generation Housing (PGBF) scheme and efforts to help rubber smallholders switch to other commodity crops such as palm and coconut.

Anwar, who is also Finance Minister, also stated the Unity Government’s commitment to dispose of a portion of settlers’ loans amounting to RM8.3 billion.

SPONSORED CONTENT Shell’s Access to Energy helps power lives of isolated communities in Sabah Kota Kinabalu: In 2017, Sabah Shell Petroleum Co Ltd (SSPC) launched Access to Energy (A2E), a Shell Social Investment programme aimed at providing affordable and continuous supply of electricity from renewable sources for communities who live without connection to the electricity grid. Read more “We made a decision to reduce, not add to the burden Felda folk. There are second, third and fourth generations (of settlers that need to be taken care of),” he said at the Felda Settlers’ Day celebration, here, Friday.

On June 28, an agreement with a government guarantee was signed for the Federal Land Development Authority (Felda) to restructure the agency’s loans through the issuance of sukuk and revolving credit as part of efforts to restore Felda’s financial position.

The Ministry of Finance (MoF) informed that a major part of the restructuring of Felda’s loans is to reduce the principal of Felda’s debt to financial institutions by RM7.9 billion.

Touching on health care for Felda residents, Anwar said a special SKR incentive of RM300 would benefit 70,715 settlers aged 65 and above.

He also acknowledged the hardship faced by settlers who had to travel long distances to the hospital to undergo hemodialysis treatment, and announced that 12 haemodialysis centres would be built with an allocation of RM21 million in all Felda regions and another one at the Felda Foundation premises in Kelana Jaya.

“The haemodialysis centres will benefit 2,000 patients,” he said.

Meanwhile, Anwar said the Government did not forget the settlers in Sabah, announcing a diesel subsidy amounting to RM36 million per year for power generation and water treatment operations at the Sahabat, Umas and Kalabakan complexes in Sabah.

The incentive, he said, would benefit nearly 43,000 residents in the three areas.

Since July 2021, he said Felda had spent almost RM128 million on energy generation, treatment and supply of clean water in these areas. ­

According to Anwar, the Government has also approved an allocation of RM7.7 million per year to cover the cost of operating 37,012 street lights at Felda settlements nationwide.

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