This article first appeared in The Edge Malaysia Weekly on July 7, 2025 - July 13, 2025

IN a quick turn of events, Datuk Seri Ahmad Shabery Cheek’s contract as Federal Land Development Authority (FELDA) chairman is said to have been extended by six months.

This comes on the heels of an announcement by FELDA on July 1 that Ahmad Shabery’s contract had expired on Monday, June 30.

When contacted to confirm the extension, a FELDA representative tells The Edge that the government agency is still awaiting confirmation from the Prime Minister’s Office (PMO) on whether Ahmad Shabery’s contract has been extended or if there is another candidate for the role.

This goes to show that the situation is still fluid, never mind the fact that FELDA announced Ahmad Shabery’s departure from the agency last Tuesday.

“Politics plays a role in the selection. Remember that FELDA settlements are traditionally a vote bank with more than 54 parliamentary seats, which could make or break a coalition’s plan to win a general election,” says an observer.

FELDA is a statutory body established in 1956 to eradicate poverty through land development and resettlement of rural communities. It has developed more than 500,000ha of rural land through agricultural activities, mainly the cultivation of oil palm and rubber, as well as industrial and commercial activities.

As one of the country’s major socioeconomic agencies, FELDA is overseen by the PMO, alongside Lembaga Tabung Haji, Permodalan Nasional Bhd and Petroliam Nasional Bhd.

Ahmad Shabery was appointed to the post on July 1, 2023, thrusting the former Umno cabinet minister back into the limelight after he had stayed mostly under the radar upon losing his Kemaman, Terengganu parliamentary seat in the 14th general election in 2018.

Some say the extension is so that he will be able to see the privatisation of FGV Holdings Bhd (KL:FGV) through.

Last Thursday, Maybank Investment Bank Bhd said in a notice that the closing date for acceptance of the voluntary takeover offer by FELDA and parties acting in concert (PAC) for the shares that are not already owned by the offerors had been extended to Aug 15 from July 7.

This will be the final closing date for the offer, Maybank IB said.

FELDA and PACs — mainly the Pahang government and Koperasi Kakitangan Felda Malaysia Bhd — launched the takeover offer on May 26, offering RM1.30 for each FGV share. As at July 3, the offerors collectively owned 89.08% of FGV’s equity, amounting to 3.25 billion shares.

This is the second attempt to privatise FGV. The first attempt was made in 2020, in an exercise offering the same price of RM1.30 per share, but it failed.

The privatisation of FGV would allow FELDA to restructure and reorganise the company behind closed doors, out of the public eye.

Since FGV was listed in 2012, its share price has been on a downward trend. Its initial public offering at the time was one of the world’s largest, raising RM10.5 billion, of which RM4 billion went to the company and the remaining RM6.5 billion to FELDA.

As at July 4, FGV’s shares were trading at the offer price of RM1.30, valuing the company at RM4.74 billion. 

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