Through Land Development: Lessons from Malaysias FELDA DATO - - PowerPoint PPT Presentation

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Through Land Development: Lessons from Malaysias FELDA DATO - - PowerPoint PPT Presentation

Social Progress Through Land Development: Lessons from Malaysias FELDA DATO DZULKIFLI ABD WAHAB ALTERNATE PERMANENT REPRESENTATIVE OF MALAYSIA TO FAO 1 Felda Creation FELDA Land Development Ordinance 1956 Federal statutory body


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DATO’ DZULKIFLI ABD WAHAB ALTERNATE PERMANENT REPRESENTATIVE OF MALAYSIA TO FAO

Social Progress Through Land Development: Lessons from Malaysia’s FELDA

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FELDA

Felda Creation

  • 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

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FELDA

Primary Role

  • 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.

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FELDA

Land (Group Settlement Areas) Act of 1960

  • 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, 2nd Prime Minister, who mooted FELDA’s establishment, visiting one of the earliest settlements

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FELDA

LEMBAGA KEMAJUAN TANAH PERSEKUTUAN (FELDA)

STANDARD FELDA SCHEME

10 acres (4.1 hec) Plantation Area ¼ acres (0.1 hec) Housing Area

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FELDA

LEMBAGA KEMAJUAN TANAH PERSEKUTUAN (FELDA)

A FELDA scheme (Aerial View)

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FELDA

Financial

  • 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
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FELDA

FELDA’s Enhanced Diversification Strategy

FELDA’s 3 Fold Thrust to Attain Sustainability Plantation (without settlers) 340,000 ha Smallholding farm activities 112635 families 521,938 ha Processing, Logistic, ICT, Manufacturing, R&D, Trading, Downstream, etc.

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FELDA

LEMBAGA KEMAJUAN TANAH PERSEKUTUAN (FELDA) 9

Field Activities

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FELDA

THE TRANSFORMATION

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Early FELDA Settlement

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FELDA

LEMBAGA KEMAJUAN TANAH PERSEKUTUAN (FELDA)

FELDA’s Transformation

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FELDA

LEMBAGA KEMAJUAN TANAH PERSEKUTUAN (FELDA)12

Individual land titles to settlers after completion of loan repayments (15 years)

 +0.25 acres residential area  +10 acres (4.01 ha) of field

LAND HOLDING POLICY

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FELDA

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SETTLER’S MONTHLY AVERAGE INCOME

National poverty line is RM900 (USD274.6)

YEAR RM/USD

RUBBER

RM/USD

PALM OIL

GROSS NETT GROSS NETT 2013 RM 2,082 2,002 RM 3,787 3,665 USD 632 608 USD 1,150 1,113 2012 RM 2,508 2,438 RM 3,926 3,789 USD 836 813 USD 1,308 1,263 2011 RM 3,928 3,863 RM 4,648 4,502 USD 1,309 1,287 USD 1,549 1,500 2010 RM 4,266 4,195 RM 3,419 3,262 USD 1,390 1,366 USD 1,114 1,063 2009 RM 1,812 1,690 RM 2,459 2,219 USD 530 494 USD 719 649 2008 RM 3,199 3,056 RM 3,278 2,929 USD 922 881 USD 945 844

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FELDA

Social Development

  • Settlers participation in management
  • Education
  • Economic activities & entrepreneurship

programme

  • Community activities
  • Health
  • Recreation
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FELDA

LEMBAGA KEMAJUAN TANAH PERSEKUTUAN (FELDA) 15

SETTLER PARTICIPATION IN MANAGEMENT

  • Decide on policy matters
  • Decide yearly programmes and plans
  • Quarterly meetings
  • Leader represents the region
  • A national settler leader sits as a

member of FELDA Board

National level

  • Leaders represent schemes
  • Decide on programmes to be

carried out at regional level

Regional level

  • Monthly meeting
  • Execute

programmes

  • Overcome issues

Scheme level

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FELDA

LEMBAGA KEMAJUAN TANAH PERSEKUTUAN (FELDA)

FELDA manager assisting settlers in an oil palm nursery

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FELDA

LEMBAGA KEMAJUAN TANAH PERSEKUTUAN (FELDA)17

Nursery Preparation

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FELDA

Education

  • Kindergartens
  • Daily care centre for

handicapped

  • Children literacy

programme

  • Tuition
  • Residential hostel
  • Scholarship for
  • verseas studies
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FELDA

Skill Development

  • 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)

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FELDA

Economic Activities & Entrepreneurship Programme

  • 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.

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FELDA

Community Activities

  • Village beautification

programme

  • Parenting skill
  • FELDA Auxiliary Police

for village security

  • Religious programmes
  • Women association

programmes

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FELDA

FELDA EDIBLE GARDEN

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FELDA

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FELDA

Healthcare

  • To organize health

activities for expectant mothers

  • Medical check up
  • Monitoring non

communicable disease (diabetes, coronary, high blood preasure)

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FELDA

Recreation

  • To provide facilities for

sports and recreation

  • To organise recreation

activities

  • To organise sport

competition e.g. football, futsal, etc.

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FELDA

LEMBAGA KEMAJUAN TANAH PERSEKUTUAN (FELDA)

FELDA’s new model: “Sentuhan Kasih”

  • 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

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FELDA

Integrated Farming AutoPot and Aquaculture Technology Koto IBS Technology (Industrialized Building System) Modern Infrastructure

COMPONENTS OF NEW MODEL: “Sentuhan Kasih”

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FELDA

LEMBAGA KEMAJUAN TANAH PERSEKUTUAN (FELDA)

Clubhouse (Hotel) Multi-Purpose Hall “Sentuhan Kasih FELDA” Project View

Housing Area Integrated Farming

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FELDA

LEMBAGA KEMAJUAN TANAH PERSEKUTUAN (FELDA)

IMPACT OF FELDA’S DEVELOPMENT IN MALAYSIA

 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

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FELDA

LEMBAGA KEMAJUAN TANAH PERSEKUTUAN (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

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KEY SUCCESS FACTORS

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FELDA

LEMBAGA KEMAJUAN TANAH PERSEKUTUAN (FELDA)

FUTURE

 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

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FELDA

LEMBAGA KEMAJUAN TANAH PERSEKUTUAN (FELDA)

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FELDA’s Global Presence

FELDA

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FELDA

LEMBAGA KEMAJUAN TANAH PERSEKUTUAN (FELDA)

RECOGNITION

  • 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

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FELDA

LEMBAGA KEMAJUAN TANAH PERSEKUTUAN (FELDA)

Thank You