Prime Minister Datuk Seri Najib Razak announced several goodies for Felda settlers on July 24. The measures will surely strengthen the economy. Let’s take a look at the benefits to the rakyat.
PM give RM5,000 incentive to each smallholder
Datuk Seri Najib announced that the government will give RM5,000 to each smallholder or a total of RM474.7 million to 94,956 settlers all over the country.
The RM5,000 can definitely help reduce the financial burden of each smallholder and they will be able to spend for their families such as on food, clothes, groceries and other necessities.
All these spending will contribute to the country’s economy and make it stronger.
Smallholders will be able to prepare for Hari Raya Haji
For smallholder Osman Lampir, 61, from Felda Palong Sembilan, Negeri Sembilan, the RM5,000 incentive will help him prepare to celebrate Hari Raya Haji AidilAdha.
Another smallholder Abdul Halim Lambak from Felda Mempaga Dua, Bentong Pahang also agrees that the money will help them to prepare for Hari Raya Haji.
Each smallholder have an average of four or five children.
The economic activity will spill over the entire family from father to mother, their children and their grandchildren.
Abdul Halim’s simple act of buying an ice cream for his granddaughter Nur Azua Faizal can help stimulate the economy.
Smallholders no longer need to pay replanting debt
Oil palm trees need to be replanted every 20 years so that it can be replanted.
And to replant, the smallholders need to take loans to pay for the replanting.
Datuk Seri Najib announced that smallholders debt will be written off at RM5,000 for each settler.
This is good news as each smallholder can do a lot things with RM5,000.
Spending it on their families will ensure there is economic activity which will help support the country’s economy.
Smallholders no longer need to pay part of their loan to buy FGV shares
In 2012, Felda Global Ventures (FGV) was listed on Bursa Malaysia.
As part of the deal, smallholders were offered shares.
But some smallholders cannot afford to pay for the shares and took loans.
Datuk Seri Najib announced that under the incentives, 77,000 settlers do not have to pay part of the loan.
Again, the settlers can do a lot of things with the money to generate the local economy.
On top of that, Datuk Seri Najib announced that settlers who are able to pay for the loans and finished paying, will get RM1,820 each.
This is an incentive which settlers should be grateful as the money can be used to improve their livelihoods.
Smallholders can extend their houses
Prime Minister Datuk Seri Najib also announced an interest free loan of RM40,000 for 70,000 smallholders to extend and renovate their houses.
Smallholders can also build a second house within the same plot next to the first house.
This will make settlers more happy to spend time with their families in comfortable houses.
When settlers are happy, they will produce more and this will contribute positively to the country’s economy.
Each smallholder get RM7,500 grant to replant
Oil palm trees which are over 25 years are expensive to replant.
To help support the smallholders, Datuk Seri Najib also announced a RM7,500 grant for smallholders to replant.
This will really help smallholders to be free of the financial burden and their young oil palm trees can start to produce once again.
They can then harvest their fresh fruit bunches which is then sold to Felda mills which will enable them to earn an income.
This will help the settlers to provide for their families and contribute to the economy.
Smallholders play a vital role to the economy
Although there are only 112.635 smallholders in the country, they play a vital and important role to the country’s economy.
Since Felda’s first land scheme in Lurah Bilut, Pahang was set up in 1956, the settlers together with their children have grown to more than five million people.
The settlers own more than 800,000ha of oil palm land all over the country and produce some three percent of the world’s output or some 3 million tonnes of crude palm oil.
The export value total over RM40 billion contributing a large chunk of the country’s gross domestic product.
Felda settlers play an integral an important part of the economy and will continue to be for many many years to come.