Investors give Felda the thumbs-up
KUALA LUMPUR: If the Federal Land Development Authority (Felda) uses its huge financial reserves to strengthen its assets, it will be a "wise and very good" move by the land development and rehabilitation agency, says Malaysia Investors' Association (MIA) president PHS Lim. "The reserves can come down if it is being spent on expansion. If they acquire new assets, then we must understand their business sense and cannot be too criticial of them. "Judging from past performance, they have done creditable things for Malaysia," he said, Lim said Felda's whopping RM15.37 billion assets as at 2009 was very sizeable as the agency owned the world's largest oil palm plantations. "If the reserves are used to enhance the assets, it's a good move as the lifespan of oil palm trees is very long, up to 20 years. An oil palm tree can grow up to 10 to 15 years before the yield declines," he said. For the good of the industry, Lim said the people shou...