FELDA was established in 1956 with an audacious ambition – to create opportunity and hope, and to offer a lifeline out of poverty for the poorest peoples in our country. The Federal Land Development Authority (FELDA) set about apportioning parcels of land for agriculture, creating communities of smallholders who would one day become the backbone of the local oil palm industry.
In time, FELDA evolved from an agency providing extension services and other forms of assistance for the smallholders, to an active participant in the palm oil value chain, establishing mills and refineries, logistics and bulking facilities. It also acquired its own landbank, mainly for the cultivation of palm oil and rubber.
Almost 50 years after FELDA was established, the government took the first steps that would lead to the establishment of FGV Holdings Berhad (FGV) and its eventual listing on Bursa Malaysia in June 2012. FGV was then known as Felda Global Ventures Holdings Berhad.
FGV was listed on 28 June 2012, allowing it to tap into the capital markets, to create more value and grow the company. FELDA would remain the largest shareholder in FGV with a 33.7% stake, and the two organisations would continue to benefit from the symbiotic value of their origins and continuing relationship. FGV raised RM4.5 billion from the listing exercise, while FELDA received RM5.5 billion.
Prior to its listing, FGV took various steps to strengthen its position and to create a sizeable and integrated Plantation company. These steps included:
For further details on Land Lease Agreement Payments and Oil Palm Age Profile, please click here.
After its listing, FGV became one of the world’s largest supporters of smallholders, sourcing more than two thirds of its fresh fruit bunches from both FELDA settlers and independent smallholders, forging the vital links between small Malaysian farmers and international markets.
FGV also conducts workshops for and works closely with smallholders in line with the national commitment to the Malaysian Sustainable Palm Oil (MSPO) standard. Through this consistent engagement, settlers are also kept up to date on best agriculture practices and regulations that impact the industry as a whole.
Both FELDA and FGV also contribute to Yayasan Felda, which conducts educational, healthcare and charitable activities for settler communities and Malaysians at large. FELDA and FGV are represented on Yayasan Felda’s Board.