Issue 1 - American Palm Oil Council

Lessons learntFelda’s success can be attributed to many factors, especially theclose co-operation between the federal government, stategovernments, settlers, contractors, staff and management.In land development programmes, the people factor is critical.Therefore, social development programmes were instituted fromthe beginning to ensure harmony and peace in the schemes.In the management of funds, prudence and frugality have beenthe hallmark of financial management. Funding from variousbodies like federal government and the World Bank has beencrucial to developing the schemes.The ‘Package Deal’ strategy was successful in eliminatingmiddlemen and getting best value for the settlers.2. The settlers’ community must be turned into a middle-classgroup earning an average monthly income of RM2,500.3. Felda must become a global leader in the palm oil industry.4. It must develop second- and third-generation settlers into aprogressive community.5. Felda itself must be moulded into a strong institution.Programmes and activities have been drawn up to achieve theseobjectives. Some have been implemented and others are in theprocess of implementation.Felda is also assessing its position by benchmarking against thebest private plantation players in Malaysia and revisiting itsstrategies for settlers’ growth. The focus is on increasingproductivity of the smallholdings on par with, or better than, thebest private plantations.The ultimate test will be in creating a self-sufficient society thatis able to take care of the needs of the second and thirdgenerations on its own.The Felda model is being adapted elsewhere in terms ofconcept and structure. We have shared our experiences withmany developing countries and are now providing technicalassistance to Sierra Leone.Good Agriculture Practices and Good Management Practiceswill be exploited to boost the productivity, while striking abalance between development, environmental quality and thewell-being of settlers. Key elements such as sustainableplantation, economic and product sustainability will beincorporated.Five Thrusts for FeldaTo ensure Felda remains relevant in the next 50 years, thegovernment has outlined Five Thrusts that will help theorganisation to diversify, improve its technology, venture intocreating a ‘One Region, One Product’ concept, create moresmall- and medium-scale industries and tap the full potential ofthe younger generation:Dato’ Ahmad Tarmizi AliasDirector-GeneralFederal Land Development Authority, Malaysia1. Felda schemes must become a role model for traditionalvillages, equipped with modern infrastructure and a newstyle of living.GLOBAL OILS & FATS BUSINESS MAGAZINE • VOL.5 ISSUE 1, 2008 11