the felda model

www.felda.net.my
THE FELDA MODEL
Presented by:
Mr. I. Rajindran
FELDA
Copyright Reserved © 2016 FELDA
Vision
FELDA becomes the world leader
of oil palm industry and settlers
being part of the high income
group.
Mission
Enhance the well-being of the FELDA settlers:
• Production of the best palm oil and rubber in the world.
• Modern infrastructure facilities.
• Increasing the potential human capital.
• Creating a culture of innovation and creativity.
• Diversify economic resources in order to generate high income.
• Strengthen the management of FELDA to world class.
• Fostering a culture of excellence
ABOUT US
Federal Land Development Authority
• A government agency established since
1st July 1956.
• FELDA’s objectives:
 Provide land for landless;
 Eradicate poverty and uplift socio-economic
status of rural communities;
 Encourage the development of a progressive,
productive and disciplined settlers community.
Logo Evolution
TO DATE
EVOLUTION of
2015
2013
Establishment of FIC
2011
Establishment of KPF 2
Felda
Broadband
Sdn. Bhd
FELDA
2012
Listing of FGVHB
2010
Focus on FELDA’s New Generation
2000
Pre-paid loans to Federal Government and World Bank
1995
Establishment of FHB & Subsidiaries of FELDA
1990
Final intake of settlers : Sahabat 2
1992
Commercial Plantation under FPSB
1980
Establishment of KPF
1972
First Corporatization – FELDA Trading Corporation
1968
Loans from World Bank – USD 42 million
1961
Taib Andak Scheme (oil palm) - FELDA system of management
1956
Establishment of FELDA
1958
Lurah Bilut scheme
1959
First group of FELDA settlers (28 )
LEMBAGA KEMAJUAN TANAH PERSEKUTUAN (FELDA)
FELDA TRANSFORMATION
FELDA MODEL
FELDA NEW MODEL
Establishment of FELDA
Investment Corporation
(FIC)
Listing of MSM (Sugar)
Listing of FGVHB
Establishment of KPF 2 and
focus on FELDA’s New
Generation
2011
1990
1956
Establishment of KPF
Formation of FELDA
Group of Companies
Establishment of
FELDA
2012
2016
2013
TRANSFORMATION INITIATIVES
1. Property Development & Investment
2. Equity Investment in IRIS
TRANSFORMATION INITIATIVES
3. Hotels Investment (Local & International)
1. Launch of Menara FELDA
2. Launch “Sentuhan Kasih FELDA ” 4. FELDA Wellness Corporation
5. Construction of Jengka Sports Stadium
3. Innovation Project &
6. Construction of Army Camp in Sabah
Transformation of FELDA
7. New Generation Housing Scheme(PGBF)
Tenggaroh
4. Strategic Collaborative Program 8. Entrepreneur International Business Unit
(EIBU)
5. Agropolitan Project (ECER)
9.
FELDA Investment Corporation (FIC)
6. Housing Scheme for Staff
10.Strategic Alliance of FELDA-Uralkali
11.Strategic Alliance of FELDA-Lulu Group Int
FELDA
FELDA
GLOBAL
PRESENCE
LEMBAGA KEMAJUAN TANAH PERSEKUTUAN (FELDA)
8
Full time
management at
scheme (estate)
Each village with
400 settlers1
4.1 ha. oil palm or
rubber holding &
0.1 ha. House lot
Land title
Loan
Repayment
Processing &
Marketing
THE FELDA
MODELS
Community
Amenities
Block system/
collective work
Settler intake and
conditions
Financial Aid
> One of the early settlement development in 1960s
Tun Abd Razak, 2nd Prime Minister, who mooted the FELDA
establishment, visited one of the earliest settlement
STANDARD
FELDA SCHEME
Housing Area
¼ acres (0.1 hec)
CROP
Plantation Area
10 acres (4.1 hec)
HECTERAGE
Palm Oil
397,600
Rubber
82,165
Village
42,173
TOTAL
521,938
FELDA / SETTLERS LAND SIZE
EARLIER FELDA
SETTLEMENT
Objectives of
settlement:
FELDA
• Eradicate Poverty
• Providing Hope and
Job Opportunity
• A Chance to Own a
Land
• To nurture Leadership
Skills
• To setup a Good
Bonding Social Group
FELDA
TRANSFORMATION
SETTLER SELECTION
POINTS SYSTEM
1.
2.
3.
4.
5.
Age of applicant (21 – 50)
Married, preferably with children
Landless or with rural land holdings of less than 1 ha
Agricultural background
Physically fit
SETTLER PARTICIPATION
IN MANAGEMENT
National
Level
• Decide on policy matters
• Decide yearly programmes and plans
• Quarterly meetings
• Leader represents the region
• Head of settlers is a member of FELDA
Board
Regional Level
• Leader represents the schemes
• Decide on programmes to be
carried out at regional level
Scheme Level
• Monthly meeting
• Execute programmes
SETTLER PARTICIPATION
IN MANAGEMENT
Individual land title to settlers after completion
of loan repayment (15 years)
 +0.25 acres of residential area
 +10 acres (4.01 hec) of field
SETTLERS’ MONTHLY AVERAGE INCOME
RUBBER
YEAR
2015
2014
2013
2012
2011
2010
2009
RM/USD
PALM OIL
GROSS
NETT
RM
1,643
1,596
USD
408
RM
RM/USD
GROSS
NETT
RM
2,689
2,555
397
USD
669
635
1,362
1,290
RM
3,874
3,723
USD
339
321
USD
964
926
RM
2,082
2,002
RM
3,787
3,665
USD
518
498
USD
942
942
RM
2,508
2,438
RM
3,926
3,789
USD
624
606
USD
977
943
RM
3,928
3,863
RM
4,648
4,502
USD
977
961
USD
1,156
1,120
RM
4,266
4,195
RM
3,419
3,262
USD
1,061
1,044
USD
852
813
RM
1,812
1,690
RM
2,459
2,219
USD
451
421
USD
613
553
National poverty line is RM560 (USD139.6)
A FELDA Scheme (Aerial View)
NURSERY PREPARATIONS
FIELD ACTIVITIES
Sport Centers
School
PUBLIC AMENITIES
Health Centre
Pre-School
SOCIAL ACTIVITIES
ECONOMIC ACTIVITIES
GULFOOD 2014, DUBAI WORLD TRADE CENTRE
Settlers’ products exported to
Dubai
NON – FARM STRATEGY
1.
Entrepreneur Development programme to
supplement settlers income. To date 23,750 out of
112,635 families are involved in various
businesses.
2.
FELDA Investment co-operative (KPF) encourage
savings among the settlers. Average savings of RM
6,000 (USD 2,202.64) per settler.
3.
Settlers own 20% of FGVHB.
4.
Investments in KPF yielded average dividends of
15% since inception, 1980.
GMN(Food Production Warehouse)business model to
drive the realisation of its vision, mission,
strategic thrusts and GKRA
FELDA
Vision
GMN
To be a large scale major player in the national food
GMN Key
Result Areas
Strategic
Thrust
Mission
production and distribution
1.
Maximise the usage of FELDA land with agriculture activities.
2.
Creation of new entrepreneurs and increase the income levels of existing entrepreneurs.
3.
Development of the agriculture industry focusing on “Halal” food-based agriculture.
4.
Implementation of high quality practices with relevant certification and accreditation
throughout the Upstream, Midstream and Downstream activities.
5.
GMN as a business entity operating the GMN Fresh Markets.
1
Committed
Talent
2
3
Efficient
Production
4
Quality Output
Supply Chain
Management
GKRA 1: Acquire, develop and retain committed talent and capabilities
GKRA 2: Implement ‘best-in-class’ production capacity
GKRA 3: Ensure production targets are achieved
GKRA 4: Develop GMN into a high quality, revenue generating entity
Key
Performance
Indicators
GKRA 5: Establish supply chain, marketing and branding of GMN products
Source: FELDA Management
LEMBAGA KEMAJUAN TANAH PERSEKUTUAN (FELDA)
GMN has four (4) primary products and
four (4) new products
FELDA
PRIMARY
Fruits
NEW
Vegetables
Berangan
Banana
Chili Kulai
Fruits
Cavendish
Banana
Pineapple
(Moris/N36)
Cattle
Rock Melon
Beef Cattle
Aquaculture
Tilapia
Cattle
Sheep
LEMBAGA KEMAJUAN TANAH PERSEKUTUAN (FELDA)
FELDA’S
NEW OBJECTIVE
FELDA as an Economic Powerhouse that generates
High Income for the Settlers and Rural Areas by
The Year 2020
SETTLERS’ SOURCES OF INCOME
1
10 acres of
Palm Oil/ Rubber
39.97% (20% owned by settlers)
2
5%
Felda Global
Ventures
30 %
FELDA Cooperatives
3
19 %
100 % (Next51%)
FELDA Cooperatives 2
5
FELDA Investment
Corporation (FIC)
4
FELDA
NEW MODEL
“SENTUHAN KASIH”
BACKGROUND OF SENTUHAN
KASIH
Sentuhan Kasih FELDA is comprehensive model designed to address issues with
regards to new generation of FELDA:




Migration of youths to urban areas
Unemployment
Low income
Unskillful / Low Education
Housing
This project encompasses 3 core components: Modern contemporary house
 Modern integrated farming
 Modern infrastructure
Target group of this program: New Generation of FELDA.
QUICK FACTS
 Was inspired by YAB Dato’ Sri Mohd Najib Tun Abdul Razak, Prime
Minister of Malaysia.
 FELDA Sentuhan Kasih is a new initiative to generate economic growth in
rural areas and provide job opportunities in line with turning FELDA
settlement into Economic Power House.
 An attempt to alleviate poverty by generating rural income of RM
1,500.00 (USD 374) per month for new generation.
 A pioneer project is in operation at FELDA Tenggaroh 3, Mersing, Johor
and three projects are in progress.
 Agriculture is the main economic activity.
 Innovation is the key to a successful project.
FELDA’S NEW
MODEL:
FELDA
“Sentuhan Kasih”
 To provide employment with fixed income and developing
entrepreneurship amongst the new generation of FELDA
 To provide houses to the new generation of FELDA
 To create a harmonious and innovative community equipped
with modern infrastructure
 To strengthen the new generation to face the challenging
world through smart housing project
 To support FELDA as National Food Producer through
farming activities
LEMBAGA KEMAJUAN TANAH PERSEKUTUAN (FELDA)
FELDA’S NEW GENERATION HOUSING
(PGBF)
Why PGBF?
• High demand from the second generation to own
houses in the schemes
• The second generation is now living with their
parents
• House prices are high around Felda surroundings
(which is developed by the private sector)
• To complement the Federal Government in
providing houses to target groups (New Generation)
FELDA NEW MODEL
“SENTUHAN KASIH”
Integrated Farming
Housing Area
Industrialized Building System (IBS)
Auto Pot and Aquaculture Technology
Modern Infrastructure
“Integrated Farming”
Interior Design – Main Hall
Interior Design – Dining Hall
Multipurpose Hall
100 Participants with Families at SKF Club House
FELDA
Rock Melon- Integrated
Fruit Farming
3 Species of
Fish-Integrated
Fish Farming
Organic Chicken Farming
AutoPot Vegetables Farming
LEMBAGA KEMAJUAN TANAH PERSEKUTUAN (FELDA)
Integrated Paddy Field
CAPACITY BUILDING
Felda’s Experience In Sierra Leone

The Objective of the Sierra Leone Capacity Building project is to
alleviate poverty in Least Developed Countries of Organization
Islamic Countries (OIC).
Felda’s Experience In Sierra Leone

Felda’s role is to provide technical expertise in oil palm
production, processing and marketing since Jan 2006 till 2008.

The plantation development project was based on Felda’s
Model.

Pilot project of 1,420 hectares in Sierra Leone
Workers transferring young
plants to the field
Transporting young plants to the field
Land Clearing
FELDA’s Manager assisting the
locals in the oil palm nursery
Director General of FELDA sharing the
FELDA’s Model in Sudan, 2012
The World Bank officials visited
FELDA ( Raja Alias Scheme) in
2013
Mr Krysztof Lisek from Poland, Member of European
Parliament (MEP) of People’s Party, the biggest Group gave
positive comments on FELDA’s, achievements 2013
FELDA GLOBAL VENTURES HOLDINGS
BERHAD (FGVHB)
FELDA Global was formed as an investment holding company to
spearhead the expansion and management of FELDA’s commercial
Investment: Twin Rivers Technologies USA
 Crushing Plant in Canada
Other investments include Pakistan, China, Thailand, France,
Indonesia, Saudi Arabia, Turkey and South Afrika
SUPPORTING SERVICES
FELDA is supported by 20 subsidiary companies, 20 joint-venture companies and 43
Associate companies and 5 investments in private companies providing commercial and
downstream activities
Supporting services

Palm Oil Mills
-
70

Rubber Factories
-
13

Refining
-
4

Oleochemicals
-
2
SUPPORTING SERVICES
Research & Development
Biology

Oil Palm Breeding

Biotechnology

Agronomy & Advisory

Applied Technology

Mechanisation

Automation

Advance Electronics System

Midstream

Beneficial microbes

Milling Research

Downstream

New CPO based & PKO based product

Food & Non-Food

Supporting Services
Marketing
• Palm Oil, Kernel Oil & Related Products
• Rubber & Its Products
Manufacturing
• Finished Goods:
 Cooking Oil, Ghee, Margarine Etc
46
Supporting Services
Transportation
 Crude Palm Oil/Latex
 Cargoes
KEY SUCCESS
FACTORS
1. Close co-operation between federal and state
government, settlers, contractor, staff and
management.
2. Availability of Land for Land Development.
3. Implementation of social programs in
community development from the beginning.
4. Funding from the government / world bank and
practicing Financial Prudence.
5. “Package Deal” strategy – complete value chain
6. Efficient Management and dedicated staff.
7. Legal framework through GSA Act 1960 – Rules
/ Conditions.
8. Land given to the targeted group
(poor/landless)
9. Political stability.
IMPACT OF FELDA’S
DEVELOPMENT IN MALAYSIA
•
•
•
•
•
•
•
•
•
•
•
Eradication of poverty of 112,635 families (equivalent to 2 million people) –
New Economic Policy
Vast Land Development – Oil Palm / Rubber (811,140 hectares)
Employment creation
New townships / growth centers
Contributes significantly to GDP through palm oil / rubber production(18%)
Overcoming communist activities through the development of interior land
Human capital development through formal and skilled training
Establishment of FELDA companies (Business / Employment)
Felda Foundation – Corporate Social Responsibility
Foreign exchange earnings through exports
Payment of corporate tax
FUTURE
 FIVE TRUST
•
•
•
•
•
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 palm oil industry and
transforming the settlers into a high income
community by 2020
 Transforming FELDA settlements into Economic
Power-House
 To share FELDA’s Model with other countries.
Thank You
Copyright Reserved © 2016 FELDA