Felda enhances employment scheme with RM1,700 minimum wage

KUALA LUMPUR: The Federal Land Development Authority is enhancing its employment scheme with a RM1,700 minimum wage and a motorbike allowance, says Datuk Seri Dr Ahmad Zahid Hamidi.

The Deputy Prime Minister said Felda currently employs 12,587 foreign workers on its estates as of July, with recruitment managed through Felda Plantation Management Sdn Bhd.

“To overcome the shortage of workers, Felda is also providing housing, Employees Provident Fund and Social Security Organisation contributions, as well as insurance coverage,” he said.

Ahmad Zahid said this while winding up debates on the 13th Malaysia Plan in the Dewan Rakyat on Monday (August 18).

He said Felda was approved to recruit 3,000 foreign workers on July 27, 2024, and the quota was fully filled by March this year.

Ahmad Zahid said the agency has streamlined the Small-Scale Contracting initiative to allow Felda settlers to participate as small contractors.

He said larger agriculture tenders are being offered to qualified Felda-owned companies, adding that deductions from produce are used to cover estate operating costs, settlers’ loans, and the Replanting Contribution Fund, which carries a guarantee.

“The Estate Insurance Collection was discontinued in June 2022, with estate recovery now managed at the scheme level,” said Dr Ahmad Zahid.

“The Replanting Fund remains, with deductions of RM12 per acre per month, though it is being reviewed to reflect current costs,” he added.

Dr Ahmad Zahid then said that Felda also enforces a minimum income policy, where any costs or deductions that cannot be collected will be deferred and recovered the following month.