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Najib gears up for polls with S$510m package to woo farmers

PUTRAJAYA — Malaysian Prime Minister Najib Razak moved yesterday to secure a key vote bank as he announced a massive aid package for small landholders in a sign that he is gearing up for elections.

Mr Najib said that settlers who took loans to buy FGV shares will see part of their outstanding debt forgiven. TODAY file photo

Mr Najib said that settlers who took loans to buy FGV shares will see part of their outstanding debt forgiven. TODAY file photo

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PUTRAJAYA — Malaysian Prime Minister Najib Razak moved yesterday to secure a key vote bank as he announced a massive aid package for small landholders in a sign that he is gearing up for elections.

Farmers who come under the auspices of the Federal Land Development Authority, or Felda, will get cash handouts from the end of August, and have some debts erased, Mr Najib said in announcing the RM1.6 billion (S$510 million) package.

Felda has been hit by financial scandals, and the share price of its unit Felda Global Ventures (FGV) has fallen, upsetting farmers — long the mainstay of the ruling coalition.

Many of them, who took out loans to buy Felda shares, have also expressed frustration about late assistance payments from the state-backed company.

Mr Najib needs those farming votes if his Barisan Nasional (BN) coalition is to extend its 60-year grip on power, and there have been concerns within BN that voter support could be affected by the opposition’s playing up of problems.

Speaking at the closing of the three-day National Felda Settlers’ Day celebration attended by 25,000 Felda settlers in Putrajaya, the country’s administrative capital, Mr Najib called on them to rally behind BN.

“Putrajaya will be defended at all costs. Don’t believe the lies spread about Felda settlers not supporting the government,” he said.

He noted the contributions made by the agricultural programme, which was launched by his father, former prime minister Abdul Razak Hussein, in 1956.

“There are one million people whose future changed for the better due to the success of Felda and our struggle, which began 61 years ago,” he said.

“My father set up this initiative with these goals: Land for the landless, job for the jobless and good land for good people,” he added.

“The Felda initiative is close to my heart. Without the Felda community, it’s not possible that Putrajaya would be held by the government. And without the government, what place would Felda settlers (have).”

While the next election is not due until mid-2018, politicians and analysts have indicated it could come by the end of this year as Mr Najib seeks to capitalise on an opposition in disarray.

Felda farmers make up the majority of voters in 54 out of 222 federal seats, and BN won all, but six of those seats in the 2013 election.

About 95,000 settlers will get RM5,000 in cash, Mr Najib said, a move that will cost the government almost RM475 million.

He said about RM986 million will be allocated to provide grants and forgive debt incurred during replanting activities.

FGV, the world’s third-largest palm oil company, is about 62 per cent below its listing price in 2012.

Mr Najib said that settlers who took loans to buy FGV shares will see part of their outstanding debt forgiven. That is expected to total RM128.1 million and benefit almost 78,000 farmers. Those who had repaid their loans will get about RM1,800.

“If there are any shortcomings, we will fix them together,” Mr Najib noted. “We are determined, no matter what, we will defend Putrajaya.”

FGV has been wracked by graft probes and a leadership struggle in recent months. The Malaysian Anti-Corruption Commission is probing several cases involving FGV, and the company’s board ordered chief executive officer Zakaria Arshad to go on leave pending an internal probe.

Dr Wong Chin Huat, head of political and social analysis at Penang Institute, said the announcement was clearly a politically motivated move that will give Mr Najib “greater freedom in the timing of election”.

“Mahathir and the opposition are actively campaigning in Felda areas. If the goodies from Najib mitigate the Felda voters’ anger, the effect will decrease over the time,” he said, referring to former Prime Minister Mahathir Mohamad, who is now leading the opposition pact Pakatan Harapan in seeking to unseat Mr Najib at the polls.

Political analyst Norshahril Saat added: “Umno has always treated Felda voters as its key supporters, and the new initiatives seek to reassure them that Umno is the best party to protect their interests.

“BN’s concern is the Mahathir factor. It is difficult to say whether this will change Felda voters’ attitude, because on the other side is Mahathir,” added Dr Norshahril, who is a fellow at Iseas-Yusof Ishak Institute.

Adding to the sense that elections may be due soon, various ministers spoke out yesterday against Dr Mahathir and also talked up BN’s track record.

“The opposition can’t even tell us who they will appoint to be prime minister if they win the general election,” Youth and Sports Minister Khairy Jamaluddin said, as he called on voters not to listen to the opposition’s “empty promises”. “As the 14th general election is looming, we will continue to hear all kinds of promises from the other side,” he added. AGENCIES

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