SERDANG: The government has approved a RM100 million subsidy allocation for Felda to help cover the operational cost of its settlers.
Prime Minister Datuk Seri Anwar Ibrahim said the government decided on the allocation following discussions with stakeholders on the diesel subsidy rationalisation, which had impacted the settlers.
"The government has implemented targeted diesel subsidies, where the retail price of diesel is set without subsidies to address the smuggling and leakage of subsidised diesel.
"At the same time, the government has provided assistance to the targeted groups in need, including smallholders.
"Considering the additional financial implications for Felda of RM121.6 million per year due to the increase in diesel prices, the government will allocate an additional subsidy of around RM100 million to Felda to cover any increase in plantation operating costs due to the higher price of diesel.
"This is to ensure that the income of Felda settlers is not affected," he said in his speech at the National Felda Settlers' Day 2024 celebration launching ceremony in Malaysia Agro Exposition Park Serdang (MAEPS) here today.
He said the government might not be aware of the issues and struggles of individual groups and they were invited to discuss their plight with the government based on facts.
Anwar clarified that the allocation for Felda was given after chairman Datuk Seri Ahmad Shabery Cheek last Friday brought up the issue of hardship faced by settlers due an increase in plantation operating costs caused by the diesel subsidy rationalisation.
He added that the government would also look into ways of helping Felda settlers who drive their vehicles without road tax, as it is common to have "kereta sapu" in the settlements.
On 21 May, Anwar announced the cabinet's decision to implement fuel subsidy rationalisation, focusing on diesel.
Subsequently, on June 9, Finance Minister II Datuk Seri Amir Hamzah Azizan declared that diesel prices in Peninsular Malaysia would be set at RM3.35 per litre, effective from 10 June, following the market rate based on the Automatic Pricing Mechanism formula.
Amir Hamzah said that this move would save the country RM4 billion annually and enhance its long-term financial position.