New Economic Policy

FELDA
NUR AQILAH BINTI RUSLAN
2019412518 (KAM110 2C)
DR NOR ZAINI BT HJ ZAINAL
ABIDIN
TUTORIAL WORK (INDIVIDUAL
TASK)
 INTRODUCTION
In The context of the country, FELDA is regarded
as one of the most important institutions, as it
bridging the economic income gap between the
Malay, Chinese and Indians. Previously, Chinese
income was the most popular compared to the
third of the three types of people in Malaysia.
Therefore, to be one of the FELDA settlers must
be among the people of Malaysia who are
categorised under the poverty level. However,
there is no racial condition in the selection of
FELDA participants but is bound by the quota set
out in the new economic policy.
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BACKGROUND
Felda was introduced on 1 July 1956 when the Land
Development Act (1956) was enforced. The first
settlement opened in Ayer Lanas. FELDA is
administered by a board responsible to the
Honourable Deputy Prime Minister under the Prime
Minister's department. FELDA is concentrated in
peninsular Malaysia, while other government
agencies are responsible for the development of
land in the states of Sabah and Sarawak that form
East Malaysia.
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 OBJECTIVE
• To create excellent management
machinery and profesionalis with
social development oriented.

• To promote agricultural areas

productively and seamlessly through
effective agricultural management
practices in terms of lading hygiene,
maximum yield and good quality, and
maximum yield and good quality, as well
as the expenditure on which the cost is
controlled to the minimum level.

• To move the settlers ' community to

develop, productive and discipline and
improve their quality of life

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IMPLEMENTATION OF THE
FELDA
• FELDA was established on 1st July 1956
under the Land Development Ordinance 1956
and was replaced by the Land Development
Act 1956 (Act 474).
• The first completed project was Ayer Lanas
Land Development Plan, Kelantan in 1957. This
plan covers an area of 1620 hectares with
mixed commodity cultivation such as rubber
and cocoa
• In 1958, FELDA opened its own land in
Lurah Bilut, Pahang. This plan covers a
rubber planting area of 2631 hectares
• The FELDA function is reinforced by the
Land Act (Group Settlement Area) 1960
(Act 530) which came into force on 30 May
1960.
• Under the New Economic Policy (NEP)
introduced in 1670 the role of FELDA
continued to be expanded using the new
territory through the non-farm land 5
 FELDA achievements
The FELDA initiative has managed to improve plantation management efficiency and provide high returns to the settlers. This
is equally successful in the objectives of FELDA as well as the new economic policy in eradicating poverty among Malaysians.
On the other basis, the average monthly income for rubber explorers and oil palm explorers between 1980 to 2016 are as
shown in Diagram 1.0
Diagram 1.0
Average monthly income of the settler, 1980-2016
4000

3500

3000

2500

2000

1500

1000

500

0
1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016

palm oil crops Column1 6

Sources : FELDA
 Impact of the Program
Positive impact
• Has successfully increased the socioeconomic level of
the target through the land opening of the plan.
Through the land (Group settlement Area) Act 1960 (Act
530) which came into force on 30 mei1960.
• To increase the efficiency of farm management and to
provide high returns to the settlers at the national
economy. On average, the settlers ' income growth rate
increased four-fold from RM591 in 1980 to rm2336 in
2016. impact
Negative
• The land wastage as Felda only focuses on
one or two plants only on the land. For
example in Lurah Bilut, Pahang only carpark
rubber cultivation while in the land of Ayer
Lanas focused on mixed commodity
cultivation such as cocoa and rubber
• With the difficulty of fulfilling the
commitment to the settlers, particularly for
socioeconomic financing, due to a seven-fold
debt increase of RM 10.76 billion in 2018 7
compared to only RM 1.5 billion in 2009.
April Hansson

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