THE cabinet has approved the issuance of government-guaranteed Sukuk amounted to RM9.9 billion to finance the restructuring of Federal Land Development Authority (Felda).

Minister in the Prime Minister’s Department (Economy) Datuk Seri Mustapa Mohamed said through the debt restructuring, Felda’s financial position is expected to chart in a positive territory beginning 2023.

Mustapa said based on findings from the special task force set to oversee the agency’s issues, the cabinet has received several recommendations including debt restructuring as well as terminating its and lease agreement (LLA).

“Resolving Felda’s issues would not be completed without strengthening its asset management.

“Thus, its board of directors have to be committed to improve Felda’s management while the measures to reinstate Felda’s position are being deliberated by the task force,” he said in a statement today.