Anwar and Muhyiddin at loggerheads over Felda debts

ALOR SETAR: The debate over Felda settlers’ debts continues between Datuk Seri Anwar Ibrahim and former prime minister Tan Sri Muhyiddin Yassin, attracting attention from all sides. Both politicians have different perspectives on the issue, with Anwar claiming that he recently signed allocations as the Finance Minister to address the debt waiver. He questions Muhyiddin’s assertions that the matter was already resolved during his time as prime minister. These conflicting views have sparked a public dialogue regarding the handling of Felda’s financial burdens.

On June 28, it was reported that the unity government planned to restructure Felda’s debts through the issuance of sukuk and revolving credit. This initiative aimed to restore Felda’s financial position and resulted in the cancellation of 80% of the settlers’ debts amounting to RM8.3bil. However, Anwar raised concerns during a dialogue session at Universiti Utara Malaysia, pointing out that the national budget presented by the previous Perikatan Nasional administration did not allocate funds to address the settlers’ RM8.3bil debt. He clarified that the initial allocation of RM990mil was only approved under the Madani government during Budget 2023 in November last year. Anwar’s statement questions Muhyiddin’s previous claims that the debt issue had been resolved before these allocations were made.

Anwar did acknowledge that there was a preliminary agreement regarding the debt issue during the previous administration. However, the formal signing and approval of the allocation did not occur. Muhyiddin responded to this by referring to a Minister in the Prime Minister’s Department who verified the debt waiver in Parliament on Feb 23. Muhyiddin claimed that the debt cancellation took place in 2021 during his tenure. The contrasting statements made by the two politicians have ignited a discussion among the public.

During a speech at Felda’s Settlers’ Day celebration in Serdang, Selangor, Anwar stated that the government had approved yearly allocations of up to RM1bil for a decade to ensure Felda’s survival. He also mentioned that the distribution of Felda’s sukuk financing funds faced delays due to the government’s commitment to funding the economic stimulus package.