Tues 26.8.2025.
I'm from Felda 1969.
In two days time, FGV, just 13 years after being born out of the IPO in 2012, will be delisted from the stock exchange. From the initial listed price of RM 4.55, Felda will pay just RM 1.30 for each share. That's an investor's loss of RM 3.25. That's probably RM 3.2 billion.
RM 4.5 billion was raised after the IPO. Felda received RM 5.5 billion. Whoever bought FGV at that time are burnt beyond recognition. I understand some notable corporate bodies were involved, such as EPF and TH. If so, the work is cut out for them to cook up the explanation to their respective shareholders.
I speak with a service of 21 years and 9 months in Felda and its Corporations. My last post was the GM for Felda Transport Corporation. I resigned from Felda on 31.12.1990 to join another large corporation.
From 15.3.1969 to 13.4 1979, from age 24 years and 9 monts, for 10 years and 1 month, I was with Felda "Proper". My last post, as the Area Controller for NS , was from 12.2.1977 to 13.4.1979 (for 2 years and 2 months ). From 14.4.1979 to 31.12. 1990 ( for 11 years and 8 months) I was "seconded" to Felda Corporations, serving in 3 different Corporations. I was first the AGM for Felda Mills Corporation from age 34 years and 4 months, for 10 months. Next, I was the GM for Felda Trading Corporation from age 35 years and 9 months, for 2 years and 2 months. Then I was back to Felda Mills Corporation, this time as the GM, from age 37 years and 5 months, for 2 years and 8 months. From age 40 years and 6 months I was the GM for Felda Transport Corporation for 5 years and 6 months.
I write, therefore, with substance, and say that it's with a heavy heart that I see the loss of direction endured by Felda, not from a weak basis for its original foundation, but by criminal misguidance, by the political agenda inserted into its fold over the last 25 years. The amount of money that could have gone to the proper coffers with disciplined management is staggering, to say the least, but more devastating is the absolute wastage of sound material and golden opportunity laid out before it, as the result of the hard work and cost-conscious toils of the early Felda staff, operating from its spartan hq to the tough and bare scheme offices, in the days of the non-political land-development grand design. I'm talking about the days when every dollar spent had to be accounted for, and every hour in the field had to be recorded.
The first political appointee was the late Dr. Yusof Nor from Terengganu. He wasn't too bad, because he often said "No". Those politicians that came after him were all going for the "yes".
I remember the first time the idea mooted for an IPO was first heard. I was one of the opponents - outside the decision-making group, of course. But we didn't stop, among ourselves, even if our voice didn't count, much less heard, objecting to the very idea of going public. Our simple argument was, Felda wasn't cash-strapped. In fact Felda had plenty of excess cash. All government loans were fully paid. Why not. Oil palm was our main produce, and the world demand was always there. Our staff salaries and perks were not like the private plantations. In fact, among us GM's, some were even embarrassed to be seen alighting from our modest staff Peugeots when attending outside meetings with other corporate managers, coming in their Mercedes' or even Volvos. When plantations like Dunlop were regularly paying 12-month bonuses to their estate managers , Felda Corporations were at pains to squeeze 3 months, at the most. And don't even try to compare the basic salaries lest you die laughing. The point is, costs were paramount. Thrift ruled.
The one warning our group of dissenters gave out was, why should Felda, with its immense potential, open itself to unfriendly takeover by going public. There was even the joke then that through "Temasek" Lee Kuan Yew could become the next Chairman of Felda.The thing is, in the US, very successful public companies make themselves private so as to avoid unfriendly takeovers.
I guess there's money to be made when large corporations go public - the banks, investors, arrangers etc. A lot of money. That's the convincing argument for producing FGV. Now this is the turnaround.
It's Felda 2025.
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