KUALA LUMPUR (June 20): With the shutting down of FGV Dairy Farm Sdn Bhd and its units, including FGV Dairy Industries Sdn Bhd, 112 farmers and vendors are collectively owed RM4 million — a sum likely to be chump change to the likes of FGV Holdings Bhd, which generated RM22.16 billion in revenue for the financial year ended Dec 31, 2024.

However, it is a large amount for the affected farmers and vendors. Many are now seeking legal action for the sums owed to them, most of which range between the RM50,000 and RM100,000.

While FGV Holdings — the 60%-owned parent of FGV Dairy Farm — says “it remains fully committed to supporting an orderly conclusion of the business and will continue to work closely with all relevant stakeholders throughout the process”, some farmers are vexed as the plantation giant did not even respond to letters of demand sent to them.

The farmers are also cognisant of Bank Pertanian Malaysia Bhd’s (Agrobank) plans to auction off FGV Dairy Farm’s assets, including a farm in Linggi, Negeri Sembilan and other infrastructure to recover RM10.3 million owed to the development financial institution.

To facilitate the recovery process, Agrobank had on March 18 this year appointed Lim E@ Lim Hoon Nam of Guan Corporate Advisory as the receiver.

However, it remains to be seen how seriously FGV Holdings and its 90%-owned parent, the Federal Land Development Authority (Felda), view the debts owed to the farmers and vendors.

The Edge also traces back some of the many flawed business decisions and even shenanigans at Felda and FGV Holdings over the past few years.

Read more in this week’s issue of The Edge Malaysia.

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