FGVH Stock Drops, Felda Staff Become Victims

SHAH ALAM, 13 Nov: 60 percent of Felda employees have become victims of huge losses when Felda Global Ventures Holdings (FGVH) stock price dramatically fell.

Chairman of National Felda Children’s Association (ANAK), Mazlan Aliman said, this is happening because the unit rates and share lots offered to them were much bigger than Felda settlers.

He said the department received complaints from some Felda employees who complained of needing to repay bank loans at the rate of RM400 per month while share prices fall.

He said the situation will continue to burden the settlers and staff for having to bear the losses of bank loan payments when the interest rate charged is more expensive than the dividends earned.

“Up till now, 60 percent of Felda staff have yet to sell their shares.

“They’ve signed bank loans involving tens of stock lots, so the amount of their loans reach tens of thousands, therefore at the same time they are also burdened,” he said when contacted.

Yesterday, the FGVH agricultural giant shares traded below the listing price (RM4.55) for the first time.

The shares began trading at a price of RM4.60 then dropped to RM4.53 at 10:46am before rising.

Final market price of the shares was RM4.57 at the 12.30pm break.

Elaborating, Mazlan said Felda shareholders will begin to incur losses when the share price stood at RM4.78.

“When prices fall now, the situation is very bad. For the settlers, should they bear loss, they will at least have a repayment package of RM50 per month to the bank.

“But it is different with Felda staff, they will be burdened with bank loans. However, they are forced to cover their losses, they do not show that they are already at loss because they were eagerly forcing settlers to sign the loan previously,” he said.

However, he said, the repayment of RM50 per month to the bank by the settlers is not a long term solution.

Obviously, if the stock continues to weaken, more settlers will incur losses and repayment will take quite a long time.

“Probably more than 10 years. Settlers have to incur the debt apart from cost of living, replanting and Felda housing should they apply. It is not beneficial to the settlers, “he said.

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