Social Progress Through Land Development: Lessons from Malaysia’s FELDA DATO’ DZULKIFLI ABD WAHAB ALTERNATE PERMANENT REPRESENTATIVE OF MALAYSIA TO FAO 1
Felda Creation FELDA • Land Development Ordinance 1956 • Federal statutory body under the PM’s Office Objectives • Provide land for landless • Eradicate poverty and uplift socio-economy status of rural communities • Encourage development of a progressive, productive and discipline settlers community
Primary Role FELDA • To find & develop suitable land • Establish central village area for about 400 families complete with public amenities • Selecting suitable candidates to become FELDA settlers (age, skills, family size, landless) • Provide financial aid to settlers before oil palm / rubber matured • Encourage collective work • Ensure efficient processing and marketing • Community development • Provide full management team at scheme level, regional and HQ.
Land (Group Settlement Areas) Act of 1960 FELDA • Land is a state matter under constitution • Under GSA Act, FELDA was given authority to develop the land and in charge of land administration One of the early settlement development in 1960s Tun Abdul Razak, 2 nd Prime Minister, who mooted FELDA’s establishment, visiting one of the earliest settlements
STANDARD FELDA SCHEME FELDA 10 acres (4.1 hec) ¼ acres (0.1 hec) Housing Area Plantation Area LEMBAGA KEMAJUAN TANAH PERSEKUTUAN (FELDA)
FELDA A FELDA scheme (Aerial View) LEMBAGA KEMAJUAN TANAH PERSEKUTUAN (FELDA)
Financial FELDA • Grant from federal govt. for administration & infrastructure • Loan from federal govt. and other institutions e.g. World Bank, Kuwait Fund for Economic Development (KFAED), Saudi Fund for Development (SFD), ADB, Japanese Oversea Economic Cooperation Fund (OECF) • By 2000, FELDA had fully paid all loans (20yrs ahead of schedule) • From 1996, federal govt. stop financing FELDA
FELDA’s Enhanced Diversification Strategy FELDA FELDA’s 3 Fold Thrust to Attain Sustainability Processing, Logistic, Plantation ICT, Manufacturing, (without settlers) R&D, Trading, Smallholding farm activities 340,000 ha Downstream, etc. 112635 families 521,938 ha
FELDA Field Activities LEMBAGA KEMAJUAN TANAH PERSEKUTUAN (FELDA) 9
THE Early FELDA TRANSFORMATION Settlement FELDA 10
FELDA’s Transformation FELDA LEMBAGA KEMAJUAN TANAH PERSEKUTUAN (FELDA)
LAND HOLDING POLICY FELDA Individual land titles to settlers after completion of loan repayments (15 years) +0.25 acres residential area +10 acres (4.01 ha) of field LEMBAGA KEMAJUAN TANAH PERSEKUTUAN (FELDA) 12
SETTLER’S MONTHLY AVERAGE INCOME FELDA RUBBER PALM OIL YEAR RM/USD RM/USD GROSS NETT GROSS NETT RM 2,082 2,002 RM 3,787 3,665 2013 USD 632 608 USD 1,150 1,113 RM 2,508 2,438 RM 3,926 3,789 2012 USD 836 813 USD 1,308 1,263 RM 3,928 3,863 RM 4,648 4,502 2011 USD 1,309 1,287 USD 1,549 1,500 RM 4,266 4,195 RM 3,419 3,262 2010 USD 1,390 1,366 USD 1,114 1,063 RM 1,812 1,690 RM 2,459 2,219 2009 USD 530 494 USD 719 649 RM 3,199 3,056 RM 3,278 2,929 2008 USD 922 881 USD 945 844 National poverty line is RM900 (USD274.6) 13
Social Development FELDA • Settlers participation in management • Education • Economic activities & entrepreneurship programme • Community activities • Health • Recreation
SETTLER PARTICIPATION IN MANAGEMENT FELDA • Decide on policy matters • Decide yearly programmes and plans • Quarterly meetings National • Leader represents the region level • A national settler leader sits as a member of FELDA Board • Leaders represent schemes Regional level • Decide on programmes to be carried out at regional level • Monthly meeting • Execute Scheme level programmes • Overcome issues 15 LEMBAGA KEMAJUAN TANAH PERSEKUTUAN (FELDA)
FELDA FELDA manager assisting settlers in an oil palm nursery LEMBAGA KEMAJUAN TANAH PERSEKUTUAN (FELDA)
FELDA Nursery Preparation LEMBAGA KEMAJUAN TANAH PERSEKUTUAN (FELDA) 17
Education FELDA • Kindergartens • Daily care centre for handicapped • Children literacy programme • Tuition • Residential hostel • Scholarship for overseas studies
Skill Development FELDA • Vocational training • Creative technology • Oil and gas • License aircraft maintenance engineer • Entrepreneurship programmes: – Graduate mentoring programmes – Sentuhan kasih – housing for second generation and cash crop projects (rock melon, vegetables)
Economic Activities & Entrepreneurship Programme FELDA • Identify potential economic activities & product • To provide training • To supervise • To provide loan • Under one region one industry FELDA identify 3 category of industries – textile, embroidery, food industry and handicraft industry • Agro-base industries comprise animal husbandry, acquaculture, cropping, etc.
Community Activities FELDA • Village beautification programme • Parenting skill • FELDA Auxiliary Police for village security • Religious programmes • Women association programmes
FELDA EDIBLE GARDEN FELDA
FELDA
Healthcare FELDA • To organize health activities for expectant mothers • Medical check up • Monitoring non communicable disease (diabetes, coronary, high blood preasure)
Recreation FELDA • To provide facilities for sports and recreation • To organise recreation activities • To organise sport competition e.g. football, futsal, etc.
FELDA’s new model: “ Sentuhan Kasih ” FELDA • To provide employment with fixed incomes and to develop entrepreneurship among the new generation • To provide houses to the new generation • To create a harmonious and innovative community equipped with modern infrastructure • To enable the new generation to face world challenges with ‘smart housing’ • To support FELDA as a national food producer through its farming activities LEMBAGA KEMAJUAN TANAH PERSEKUTUAN (FELDA)
COMPONENTS OF NEW MODEL: “Sentuhan Kasih” FELDA Koto IBS Technology Integrated Farming (Industrialized Building System) AutoPot and Aquaculture Modern Infrastructure Technology
FELDA Multi-Purpose Hall Clubhouse (Hotel) “ Sentuhan Kasih FELDA” Project View Housing Area Integrated Farming LEMBAGA KEMAJUAN TANAH PERSEKUTUAN (FELDA)
IMPACT OF FELDA’S DEVELOPMENT IN MALAYSIA FELDA Eradication of poverty of 112,635 families (equivalent to two million people) Vast Land Development – 811,140 hectares of Oil Palm/Rubber Employment creation New townships/growth centres Contributes significantly to GDP through palm oil/rubber production (18%) Defeating communist insurgency through development of interior land Human resource development through formal and skill training of staff, settlers & new generation Establishment of FELDA companies (Business/Employment) Felda Foundation – Corporate Social Responsibility Foreign exchange earnings from exports Payment of corporate income tax 29 LEMBAGA KEMAJUAN TANAH PERSEKUTUAN (FELDA)
KEY SUCCESS FACTORS FELDA Close co-operation between federal and state governments, settlers, contractors, staff and management Availability of land for land development Implementation of social programmes in community development from outset Funding from the government/World Bank Financial Prudence “Package Deal” strategy involving complete value chain Efficient management and dedicated staff Legal framework through GSA Act 1960 – Rules/Conditions Land to the poor/landless Political stability 30 LEMBAGA KEMAJUAN TANAH PERSEKUTUAN (FELDA)
FUTURE FELDA FIVE THRUSTS • Role model for other villages • High Income community • Global leader in palm oil industry • Develop the New Generation • Mould Felda into a strong Institution To be a global leader in the palm oil industry Transform settlers into high income earners by 2020 Transform Felda settlements into economic power- houses Share experiences and advise other countries LEMBAGA KEMAJUAN TANAH PERSEKUTUAN (FELDA)
FELDA FELDA FELDA’s Global Presence 32 LEMBAGA KEMAJUAN TANAH PERSEKUTUAN (FELDA)
RECOGNITION FELDA • Ramon Magsaysay Award • Tun Abdul Razak National Award • Financial Management Award • Chief Secretary Quality Award • Malaysian Palm Oil Industry Award • The Brand Laureatte Award • The Hiramatsu Award • The Roundtable on Sustainable Palm Oil (RSPO) – The World’s first smallholder agency to attain the certification • Malaysia Premier League Champion 2010 – FELDA United Football Club LEMBAGA KEMAJUAN TANAH PERSEKUTUAN (FELDA)
Thank You FELDA LEMBAGA KEMAJUAN TANAH PERSEKUTUAN (FELDA)
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