- The previous Felda management made decisions leading to potential losses of up to RM2.5bil from the Eagle High investment.
- Anwar Ibrahim wrote to President Prabowo asking him to look into the matter, noting the investment is subject to court proceedings in Indonesia.
- Anwar warned that if not addressed, Felda could lose RM2.5bil and recover only RM200mil.
- Anwar described the situation as an example of mismanagement during a meet-and-greet session with Felda's senior management and managers.
- Anwar emphasized that managers should not be discouraged and that the problems must be tackled.
- Anwar stated that the disclosure of the financial crisis figures was intended to ensure Felda’s management at all levels understood the scale of the challenges in its recovery efforts.
- On broader recovery efforts, Anwar assured that the government is committed to accelerating basic welfare projects rather than waiting until next year’s budget.
- Anwar stressed that governance, integrity, and accountability are essential to safeguard public trust and help Felda regain its standing.
Malaysian Prime Minister Anwar Ibrahim has formally requested Indonesian President Prabowo Subianto to intervene in a troubling investment by Felda in PT Eagle High Plantations Tbk (EHP), which could result in losses of up to RM2.5 billion due to prior mismanagement.4
Anwar's appeal comes as the investment is embroiled in ongoing court proceedings in Indonesia. He highlighted that the previous management's decisions have led to a dire financial outlook, with expected returns now plummeting to only RM200 million.2
“This investment is subject to court proceedings in Indonesia. I have written to President Prabowo asking him to look into the matter.” Anwar stated, emphasizing the urgency of the situation. He described the scenario as a clear example of mismanagement that has jeopardized Felda's financial health.
In December 2016, Felda, through FIC Properties Sdn Bhd, acquired a stake in EHP for US$505.4 million, a move criticized for being significantly overvalued. Anwar aims to ensure that Felda's management comprehends the scale of the challenges ahead, stating, “I want the managers to understand how difficult the recovery will be.” He reassured that the government is committed to accelerating basic welfare projects to aid recovery efforts, emphasizing the importance of governance, integrity, and accountability to restore public trust in Felda.7
“This situation is an example of mismanagement.” Anwar concluded, urging all Felda managers to recognize the necessity of addressing these pressing issues.
“Anwar warned that if the matter is not addressed, Felda could lose RM2.5bil and recover only RM200mil, calling the situation an example of mismanagement. He assured that the government is accelerating basic welfare projects rather than waiting for next year's budget.”
The Star
