Debt write-off: FELDA Kepis settlers can now heave a sigh of relief

KUALA PILAH: After more than a decade of incurring debts, settlers in Felda Kepis, here, expressed their relief with the recent initiative announced by the government to write off part of their loans.

Jafer Jais, 66, said the initiative has greatly eased his family's burden as his loan amounting to RM146,819 which he borrowed since 2010 for oil palm replanting has now reduced to RM38,444 only.

"Without the initiative, my children (the second generation Felda settlers) would still be unable to settle the debt as they have their own commitments.

"In fact, due to the current challenging economic situation, my children also help me to generate extra income for our family by doing some odd jobs," he told Bernama.

Jafer said since 2018, he had to pay a monthly instalment of RM700 to Felda, which included the loan to expand his house and buy fertilisers, but he could not afford to pay it consistently after his income was affected by the COVID-19 pandemic.

"Sometimes I pay RM300 to RM500 depending on the situation. If it is a rainy season, I am unable to go to the plantation as it is dangerous for elderly settlers like me," he said.

Felda Kepis chief settler, Abdullah Baharom, 67, said the initiative was indeed most awaited by the settlers, who are now facing various challenges in order to survive.

Abdullah Baharom, who became a Felda settler in 1983, said he has a debt totalling RM180,000, and following the adjustment loan initiative, his remaining debt now stands at RM50,000.

He said four years ago, the previous government had announced the disposal of the settlers' debts, but the adjustment method was inconsistent and the settlers were still plagued by high debt problems.

Meanwhile, Felda Kepis manager, Mohamad Daud Ahmad, 59, said all 340 settlers in the settlement have agreed to sign the Conditional Settlers Loan Adjustment agreement.

"The settlers' loan burden has been reduced by 80 per cent and the remaining 20 per cent will continue to be paid by the settlers. It is a special gift for those who have been waiting for the disposal of part of the loans," he said.

During the Felda Settlers' Day 2021 celebration, which was aired live via Facebook on July 7, Prime Minister Tan Sri Muhyiddin Yassin announced that the government had agreed to write off part of Felda settlers' loan worth RM8.3 billion under a conditional loan adjustment initiative.

-- BERNAMA