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A consultant firm appointed by Felda has discovered that 65 percent in the land development authority's management were in the opinion that the controversial listing of Felda Global Venture Holding would fail.
According to Boston Consulting Group (BCG), some 55 percent are of the view that Felda was not ready for the listing, while only 20 percent of top management supported the plan.
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The findings were revealed by PKR strategic director Rafizi Ramli during a press conference yesterday.
According to Rafizi, they were presented to Felda management and FGVH during a meeting on October 18 last year.
Besides the survey to gauge how prepared Felda was for the listing, BCG was tasked to lay out plans to facilitate the listing of FGVH.
“This reveals that the listing planned by Barisan Nasional has been opposed greatly by Felda’s top leaders. This also shows that those who are experienced and who follow the internal process throughout the decision to list (FGVH) opine that the listing will bring more harm than good to Felda and settlers,” said Rafizi.
The resistance from the Felda’s top management, said Rafizi, will derail the listing plan.
Rafizi said both prime minister Najib Razak and Felda chairman Isa Samad must ensure that the present Felda top management would not be sidelined and replaced with new faces of “BN-yes-men” in the authority.
'Half of oil palm trees old'
Meanwhile, citing a report by Wall Street Journal which highlighted concerns on the profile of the oil palm trees owned by Felda, PKR’s investment and commerce bureau chairman Wong Chen said it was strange for FGVH to continue with listing when 53 percent of the oil palm trees in Felda plantations were old, 31 percent were immature while only 16 percent are prime or mature trees, as mentioned in its prospectus.
“Normally a company will undergo listing if its financial instruments are sound. However, is FGVH’s financial standing truly sound? Can you imagine that the company’s reliance is mainly on 16 percent of its capability and potential for its IPO listing?” he asked.
Wong queried why the rush to list FGVH when its fundamental was weak.
“Is it to benefit somebody who may be making money out of the IPO?” he was quoted as saying by news portal Malaysiakini.