The Federal Land Development Authority (Felda; ms, Lembaga Kemajuan Tanah Persekutuan. LKTP) is a
Malaysia
Malaysia ( ; ) is a country in Southeast Asia. The federation, federal constitutional monarchy consists of States and federal territories of Malaysia, thirteen states and three federal territories, separated by the South China Sea into two r ...
n government agency that was founded to handle the resettlement of
rural
In general, a rural area or a countryside is a geographic area that is located outside towns and cities. Typical rural areas have a low population density and small settlements. Agricultural areas and areas with forestry typically are describ ...
poor into newly developed areas (''colonies'', ''settlements'' or ''schemes'') and to organize
smallholder farm
A farm (also called an agricultural holding) is an area of land that is devoted primarily to agricultural processes with the primary objective of producing food and other crops; it is the basic facility in food production. The name is used fo ...
s growing
cash crop
A cash crop or profit crop is an Agriculture, agricultural crop which is grown to sell for profit. It is typically purchased by parties separate from a farm. The term is used to differentiate marketed crops from staple crop (or "subsistence crop") ...
s.
Since the 1990s, it has not established new settlements, but has engaged in a diversified range of economic development and business activities.
Felda has launched a number of private corporate entities. The largest of these,
FGV Holdings Berhad
FGV Holdings Berhad (Abbreviation: FGV, sometimes FGVH; or formerly
Felda Global Ventures Holdings Berhad; ) is a Malaysian-based global agribusiness and food company. It is an affiliate of the Federal Land Development Authority (FELDA).
With ...
, is considered to be the world's largest plantation operator, with of
oil palm
''Elaeis'' () is a genus of palms containing two species, called oil palms. They are used in commercial agriculture in the production of palm oil. The African oil palm ''Elaeis guineensis'' (the species name ''guineensis'' referring to its co ...
plantations, mainly across Peninsular Malaysia, but also including other parts of Malaysia and the world.
History
Felda was formed on 1 July 1956 when the Land Development Act came into force. The first Felda colony was opened at
Lurah Bilut
Lurah Bilut () is a town in Bentong District, Pahang, Malaysia. It is the oldest estate town in the country and also a constituency of the Pahang State Legislative Assembly. It is located along Federal Route 8 en route to Raub. This estate town ...
, near
Bentong
Bentong (Jawi alphabet, Jawi: ﺑﻨﺘﻮڠ), the seat of Bentong District, is a town located in western Pahang, Malaysia, at the border with the state of Selangor in the west and the state of Negeri Sembilan in the south.
Government
Benton ...
in western
Pahang
Pahang (;Jawi alphabet, Jawi: , Pahang Hulu Malay: ''Paha'', Pahang Hilir Malay: ''Pahaeng'', Ulu Tembeling Malay: ''Pahaq)'' officially Pahang Darul Makmur with the Arabic honorific ''Darul Makmur'' (Jawi: , "The Abode of Tranquility") is a ...
in 1958, comprising 2946.88ha of land and focused on
rubber
Rubber, also called India rubber, latex, Amazonian rubber, ''caucho'', or ''caoutchouc'', as initially produced, consists of polymers of the organic compound isoprene, with minor impurities of other organic compounds. Thailand, Malaysia, and ...
. In the 1960s and 1970s, government policy began to emphasize
crop diversification
In the agricultural context, diversification can be regarded as the re-allocation of some of a farm's productive resources, such as land, capital, farm equipment and labour to other products and, particularly in richer countries, to non-farming act ...
, in an effort to avoid being affected if the world price of rubber were to drop precipitously. In 1961, Felda's first oil palm settlement opened, with of land. Oil palm gradually became the main cash crop within Felda colonies, and by 2000, (approximately 76%) of the land under Felda's programs are devoted to oil palms.
[Simeh, Arif & Tengku Ahmad, Tengku Mohd. Ariff (2001)]
"The Case Study on the Malaysian Palm Oil"
. Retrieved 19 February 2006.
More than 112,000 settlers were resettled in Felda colonies throughout Malaysia between 1958 and 1990.
No new colonies were established since 1990; acceptance of new settlers or colonists also ceased that year. The latest colony to be developed was ''Sahabat II'' in
Lahad Datu, eastern
Sabah
Sabah () is a States and federal territories of Malaysia, state of Malaysia located in northern Borneo, in the region of East Malaysia. Sabah borders the Malaysian state of Sarawak to the southwest and the North Kalimantan province of Indone ...
. The Malaysian government converted Felda into a
statutory body
A statutory body or statutory authority is a body set up by law (statute) that is authorised to implement certain legislation on behalf of the relevant country or state, sometimes by being empowered or delegated to set rules (for example reg ...
in 1996, granting it financial autonomy.
Felda focuses mainly on
West Malaysia
Peninsular Malaysia ( ms, Semenanjung Malaysia; Jawi: سمننجڠ مليسيا), or the States of Malaya ( ms, Negeri-negeri Tanah Melayu; Jawi: نڬري-نڬري تانه ملايو), also known as West Malaysia or the Malaysian Peninsula, ...
(Peninsular Malaysia); other government agencies are responsible for land development in the states of
Sabah
Sabah () is a States and federal territories of Malaysia, state of Malaysia located in northern Borneo, in the region of East Malaysia. Sabah borders the Malaysian state of Sarawak to the southwest and the North Kalimantan province of Indone ...
and
Sarawak
Sarawak (; ) is a States and federal territories of Malaysia, state of Malaysia. The largest among the 13 states, with an area almost equal to that of Peninsular Malaysia, Sarawak is located in northwest Borneo Island, and is bordered by the M ...
, which form
East Malaysia.
Scheme management
![FELDA New Zealand](https://upload.wikimedia.org/wikipedia/commons/c/c0/FELDA_New_Zealand.JPG)
Settlers were drawn from rural Malay poor. They were to be aged between 21 and 50 years, married, and physically fit. Priority was given to those who did not own any land to farm.
New settlers were assigned to a particular settlement, and were given , or of land to cultivate usually either rubber or oil palms. All settlers were required to reside at the settlement itself, and were allotted in a planned
village
A village is a clustered human settlement or community, larger than a hamlet but smaller than a town (although the word is often used to describe both hamlets and smaller towns), with a population typically ranging from a few hundred to ...
, where their home — already built by Felda — was located. Although basic infrastructure, such as
water supply
Water supply is the provision of water by public utilities, commercial organisations, community endeavors or by individuals, usually via a system of pumps and pipes. Public water supply systems are crucial to properly functioning societies. Thes ...
and
electricity
Electricity is the set of physical phenomena associated with the presence and motion of matter that has a property of electric charge. Electricity is related to magnetism, both being part of the phenomenon of electromagnetism, as described ...
, used to be lacking,
[Massard, Josiane L. (1988)]
"Are Malaysian land settlers (new) peasants? Antropological observation of a nascent Community"
Retrieved 19 February 2006. nowadays such facilities are readily provided. Schools, medical centres, and places of worship are also provided.
![FELDA Ulu Tebrau](https://upload.wikimedia.org/wikipedia/commons/6/69/FELDA_Ulu_Tebrau.JPG)
Originally, Felda schemes were designed as
co-operative
A cooperative (also known as co-operative, co-op, or coop) is "an autonomous association of persons united voluntarily to meet their common economic, social and cultural needs and aspirations through a jointly owned and democratically-control ...
s, where instead of each settler owning a defined piece of land, each settler held an equal share in the ownership of the particular scheme. However, the settlers did not prefer this scheme, as workers who did not tend to the land properly still benefited (a sort of
free rider problem
In the social sciences, the free-rider problem is a type of market failure that occurs when those who benefit from resources, public goods (such as public roads or public library), or services of a communal nature do not pay for them or under-p ...
). The government then set up a 3-phase plan, where in the first phase, the co-operative remained as a mechanism for the settlers to learn how to farm. In the second phase, each settler was given a specific plot of land to work, and in the third phase, he was given the land title to that plot.
However, the settler was forbidden from selling the land without permission from Felda or the Federal Government.
The costs of acquiring, developing and allocating the land are borne by loans made to Felda settlers. These loans are repaid in monthly instalments deducted from the settlers' income over a 15-year period.
Although settlers are supposed to focus on agricultural activities, it has been reported that a substantial number are also engaged in other activities, such as shopkeeping. Some are even employed in jobs outside the settlement.
In recent years, the growth of urban areas has led to a substantial increase in the land value of some settlements. With permission, many settlers have sold their farms, becoming instant
millionaires.
Diversification and corporate ventures
Felda has diversified from its original business of land development, to other economic ventures — some of them entirely unrelated to land resettlement. The ventures include ''Koperasi Permodalan Felda'' (KPF) and
FGV Holdings Berhad
FGV Holdings Berhad (Abbreviation: FGV, sometimes FGVH; or formerly
Felda Global Ventures Holdings Berhad; ) is a Malaysian-based global agribusiness and food company. It is an affiliate of the Federal Land Development Authority (FELDA).
With ...
.
In June 2012, FGV Holdings Berhad raised $3.1 billion from its
IPO
An initial public offering (IPO) or stock launch is a public offering in which shares of a company are sold to institutional investors and usually also to retail (individual) investors. An IPO is typically underwritten by one or more investment ...
as the biggest IPO in Asia for year to date.
Other information
![Malaya FELDA colony map v1](https://upload.wikimedia.org/wikipedia/commons/7/73/Malaya_FELDA_colony_map_v1.svg)
*
Pahang
Pahang (;Jawi alphabet, Jawi: , Pahang Hulu Malay: ''Paha'', Pahang Hilir Malay: ''Pahaeng'', Ulu Tembeling Malay: ''Pahaq)'' officially Pahang Darul Makmur with the Arabic honorific ''Darul Makmur'' (Jawi: , "The Abode of Tranquility") is a ...
contains the largest number of Felda colonies, centered around the
Jengka
Bandar Tun Razak, Jengka formerly known as Bandar Pusat Jengka or Jengka Town Centre is an agricultural town in Maran District, Pahang, Malaysia.
Bandar Tun Razak is the centre of the ''Jengka Triangle'' which is known as FELDA Jengka. The Jengka ...
scheme in central Pahang. With 43,000 settlers, Pahang is also home to the largest population of settlers. There are colonies in every parliamentary constituency in Pahang, except
Kuantan
Kuantan ( Jawi: ) is a city and the state capital of Pahang, Malaysia. It is located near the mouth of the Kuantan River. Kuantan is the 18th largest city in Malaysia based on 2010 population, and the largest city in the East Coast of Penin ...
, the state capital, and
Indera Mahkota.
* 57
parliamentary constituencies
An electoral district, also known as an election district, legislative district, voting district, constituency, riding, ward, division, or (election) precinct is a subdivision of a larger state (a country, administrative region
Administra ...
contain at least one Felda colony - 54 in peninsular Malaysia and 3 in
Sabah
Sabah () is a States and federal territories of Malaysia, state of Malaysia located in northern Borneo, in the region of East Malaysia. Sabah borders the Malaysian state of Sarawak to the southwest and the North Kalimantan province of Indone ...
.
*
Penang
Penang ( ms, Pulau Pinang, is a Malaysian state located on the northwest coast of Peninsular Malaysia, by the Malacca Strait. It has two parts: Penang Island, where the capital city, George Town, is located, and Seberang Perai on the Malay ...
and
Sarawak
Sarawak (; ) is a States and federal territories of Malaysia, state of Malaysia. The largest among the 13 states, with an area almost equal to that of Peninsular Malaysia, Sarawak is located in northwest Borneo Island, and is bordered by the M ...
are the only states that have no permanent Felda colonies - though FELDA operates a
sugar refinery in
Seberang Perai, Penang.
Felda in Sarawak
Felda did not have a significant presence in Sarawak. There is only one Felda ''project'' in Sarawak, which is located at Kampung Sampadi, Lundu District, near
Kuching
Kuching (), officially the City of Kuching, is the capital and the most populous city in the States and federal territories of Malaysia, state of Sarawak in Malaysia. It is also the capital of Kuching Division. The city is on the Sarawak River ...
. However, this project differs from typical Felda colonies in peninsular Malaysia that local villagers who are hired to work here were not allocated with or resettled to any of the lands worked on, unlike their counterparts in West Malaysia.
Oil palm development in Sarawak is under the purview of Sarawak Ministry of Land Development (MLDS) and Sarawak Ministry of Rural Development (MRDS). Meanwhile, Sarawak Ministry of Planning and Resource Management is responsible for land administration. There are two statutory bodies responsible of oil palm development, namely Sarawak Land Consolidation and Rehabilitation Authority (SALCRA) and the Land Custody and Development Authority (LCDA). SALCRA uses a model of two-way partnership between the state agency and native land owners. Meanwhile, LCDA uses a joint venture model involving state agency, native land owners, and private investors.
In popular culture
* In 2006, Felda had produced its first movie, ''
Bilut'', named after the first Felda settlement ever in Malaysia. Starring
Rosyam Nor, the main plot of ''Bilut'' is about the obstacles faced by the early settlers of Felda
Lurah Bilut
Lurah Bilut () is a town in Bentong District, Pahang, Malaysia. It is the oldest estate town in the country and also a constituency of the Pahang State Legislative Assembly. It is located along Federal Route 8 en route to Raub. This estate town ...
.
Notes and references
External links
Official website
{{authority control
Economy of Malaysia
Federal ministries, departments and agencies of Malaysia
Palm oil production in Malaysia
Agricultural land development schemes
1956 establishments in Malaya
Government agencies established in 1956
Prime Minister's Department (Malaysia)