Malaysia Oversight

Govt to gradually write off Felcra debts over 5 years, says Zahid

By NST in November 26, 2025 – Reading time 3 minute
Govt to gradually write off Felcra debts over 5 years, says Zahid


BEAUFORT: The Government has agreed that land development debts for Felcra’s consolidation and rehabilitation projects, classified as less viable nationwide, will be gradually written off over a five-year period.

Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi, however, said implementation of the debt write-off would depend on the company’s financial position, which must remain stable from year to year.

“I have been entrusted with the responsibility to ensure not only profits for Felcra, but profits for all Felcra settlers.

“As such, I fully agree to the gradual write-off of these debts. Datuk Seri Ahmad Jazlan (Yaakub), as Felcra chairman, do not burden the people with outstanding debts.

“Do not burden settlers with debts caused by losses due to reduced output at the time or other problems,” he said at the Felcra Madani Santuni Rakyat @ Lumadan programme here today.

He said the write-off would also directly benefit Felcra settlers, including those in Sabah, while serving as a step towards driving the agency’s transformation.

“Profits should be returned to the people because they truly need the benefits arranged by the Government through its agencies, including Felcra.

“Felcra’s projects are not only in Peninsular Malaysia; they are also in Sarawak and Sabah, especially in Lumadan,” he said.

At the same event, he also agreed to consider the need to prioritise the construction of Flood Mitigation Schemes (RTB) in areas around Beaufort to ensure a more effective and comprehensive solution.

Meanwhile, Zahid said Sabah could attract high-performance investment opportunities if the “three key issues” — water, electricity and roads — are resolved.

“These three issues must be addressed because investors expect them to be solved in Sabah. If they are resolved within five years, investors will come and invest heavily in Sabah.

“Many job opportunities will be created in Sabah, and these jobs will prioritise young people in the state.

“This is important because there are 169,800 unemployed youths in Sabah,” he said.

He gave a commitment that if Barisan Nasional () wins and forms the Government in Sabah after the 17th Sabah General Election, these issues would be addressed effectively.

“If we become the government or part of the government, we will ensure Pan Borneo is completed as quickly as possible before the next Sabah state election.

“Unemployment will be reduced in Sabah. We do not want Sabah youth working in Johor, the Klang Valley or Penang.

“We want Sabah youth to work in Sabah, support their families and contribute to the state’s economy,” he said.

Zahid, who is also Rural and Regional Development Minister, encouraged Sabah youth to participate in Technical and Vocational Education and Training (TVET) programmes, as the sector now offers better employment prospects.

“What is the minimum wage in the country? RM1,700 per month. What is the premium wage? With only a Mara Level 3 Skills Certificate, God willing, employers will start with RM2,500, not RM1,700.

“For a Malaysian Skills Certificate (SKM) Level 4, the salary is RM3,500. For SKM Level 5, it is RM5,000.

“There is no need to enter college or university the old way. The method is through TVET,” said Zahid, who is also National TVET Council chairman.

© New Straits Times Press (M) Bhd



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