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KUALA LUMPUR, April 25 — FGV Holdings Bhd (formerly Felda Global Ventures) may trim 6,000 positions from the estimated 20,000 workers at its head and regional offices due to its RM1.08 billion loss in the previous financial years, according to sources.
The Malaysian Reserve cited the sources as saying the job cuts were already underway and that 667 people have subscribed to a mandatory separation scheme offered last year.
It added that another 500 positions will be culled by June this year.
In February, FGV announced a net loss of RM1.08 billion in the financial year ending December 31, 2018, which it attributed to impairments and provisions, and to the 24.6 per cent decline in crude palm oil prices vis-a-vis 2017.
FGV had recorded a net profit of RM403 million in the 2017 financial year.
Its parent, the Federal Land Development Authority (Felda), is also the subject of a RM6.3 billion bailout by the federal government.
Feldal Global Ventures was previously Felda’s investment arm and was made publicly listed in 2012 under a controversial initiative by former prime minister Datuk Seri Najib Razak.
The move was meant to generate sustainable income for Felda and its settlers but FGV shares are now trading at a fraction of their initial public offering (IPO) value.
In a White Paper tabled recently in Parliament, Economic Affairs Minister Datuk Seri Azmin Ali described how billions were frittered away to buy political support for the Barisan Nasional administration and squandered on dubious business pursuits.