Business

Saturday October 24, 2009

3 agencies to contribute RM100mil each for consortium


PETALING JAYA: A consortium with equal stakes for Felda, Felcra and Risda will be set up by year-end with a paid-up capital of RM300mil, according to Budget 2010.

Each government agency will need to contribute RM100mil for the consortium which will be involved in technology sharing, plantation management, and business partnerships including supply and processing of agriculture products.

On Aug 23, Prime Minister Datuk Seri Najib Razak proposed that the three government agencies consider setting up a consortium to jointly explore both downstream and upstream projects and other mutual cooperations.

Currently, efforts are being undertaken to establish Felda settlements for large-scale food production and as a national food storehouse.

Vacant land in Felda settlements will be used to plant chillies, brinjal, bunga kantan (torch ginger bud) and bananas.

The Government has also proposed that the Federal Agriculture and Marketing Authority facilitate the marketing of these products.

To ensure the agriculture products are marketed abroad effectively and expeditiously, efforts to upgrade cargo facilities will be intensified.

The Government is also proposing that MASKargo upgrade its air cargo facilities for export of perishable agriculture products, as this measure will assist entrepreneurs to boost exports.

Risda director-general Datuk Mohammad Izat Hasan said it was a good move by the Government to ensure that each government agency have equal stake in the consortium based on the equal contribution to the paid-up capital.

“Risda has enough internal reserves to contribute about RM100mil for the consortium,” he told StarBizWeek.

The first step now is to get the Memorandum of Articles and Association’s approval to set up the consortium.

“This will be deliberated by the respective boards in the three agencies. Once approved, the issue on the appointment of the consortium’s top management will be made,” he added.

Felcra director-general Datuk Mohd Nasir Baba said: “The three agencies have held many working committee meetings over the past few months. We will try to fulfil the Prime Minister’s vision to see a formation of a dynamic consortium led by Felda, Felcra and Risda.”

He said the consortium would focus on new high-impact downstream projects, while the existing operation of each agency would run as normal. Felda could not be contacted for comment.

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