KUALA LUMPUR (July 16): The Federal Land Development Authority (Felda) is negotiating with the Ministry of Finance (MoF) to issue government guaranteed sukuk to finance the restructuring of Felda loans worth RM2.5 billion, said Minister in the Prime Minister's Department (Economy) Datuk Seri Mustapa Mohamed.

This is a follow-up to the government guarantee granted to Felda for the restructuring of its loan, as part of Felda's RM6.23 billion bailout by the government through grants, loans and government guarantees that was announced amid the release of the Felda White Paper in April 2019.

Mustapa, who is also Bersatu MP for Jeli, was responding to questions in the Dewan Rakyat about the status of the implementation of the findings in the Felda White Paper.

On another update, Mustapa said the government has established a special task force that is chaired by former minister and former Permodalan Nasional Bhd chairman Tan Sri Abdul Wahid Omar.

This task force, Mustapa said, will find the best solution to ensure Felda's financial independence and sustainability.

"This team has engaged with Felda's board of directors, management team, FGV Holdings Bhd and multiple stakeholder groups to obtain the views and feedback on the resolution of issues related with Felda.

"This special task force is expected to present the findings in August 2020," said Mustapa.

The Felda White Paper, released in April 2019, underlined short- and long-term strategies to revive the federal agency, including a new model for settler land management and economies of scale.

Other ongoing improvements include corporate management reform, addressing cashflow issue, rationalising investments and interests, strengthening the accounting system, and increasing the involvement into downstream agriculture segment.

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