KUALA LUMPUR, April 22 — National Association of Smallholders Malaysia (NASH) today proposed that the government eliminate the debt from the cost of living loan provided to Federal Land Development Authority (Felda) settlers, as it is unclear whether the cash given was a ‘loan’ or ‘aid’.

“Looking carefully, the policy and method that Felda provides while giving loans is not as clear as the usual procedures provided by other loan institutions such as banks. This is why the settlers are unclear about the aid given,” said NASH president Datuk Aliasak Ambia in a statement.

Although NASH expressed their appreciation that the Minister of Economic Affairs Datuk Seri Azmin Ali successfully presented Felda’s white papers in Parliament on April 11, Aliasak said the settlement of the cost of living debt was also part of the government’s commitment to ensure the burden of settlers’ debt towards Felda would be eased.

Referencing prime minister Tun Dr Mahathir Mohamad’s announcement that the debt suffered by settlers was due to money stolen between 2007 and 2011, Aliasak said it would be unfair if the effect of this offense is imposed on settlers, as Felda land was developed from the settlers own sweat and blood.

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“Rural development should not be accompanied by debts, as rural people especially smallholders have land-based assets that can generate their own economy. This concept of giving loan is in no way parallel to the government’s vision of producing a competitive and independent society,” he elaborated.

He said NASH members who are also Felda settlers have lodged complaints according to the problems they are facing. These include the debt and late payment of Fresh Fruit Bunches (FFB).

“NASH has nearly 30,000 members from Felda Settlers, who have complained about their problems to us, among the concerns are Felda settlers’ debt, cost of living loan to settlers, low palm prices, and Felda’s second-generation home status.

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“This should be taken seriously if the government really cares about the welfare of Felda settlers,” said Aliasak.

He said NASH is in full support of the government’s action to inject RM6.23 billion into Felda, but since the debt settlement (cost of living loans and advance from yield) is not clear to the settlers, Aliasak said how the RM6.23 billion is managed must be detailed so that its goals can be achieved.