Malaysian State Palm Oil Firm Felda Seeks $1.5 Billion Government Bailout

Malaysia’s state palm oil plantation agency, the Federal Land Development Authority, is seeking 6 billion ringgit ($1.5 billion) from the government to help turn itself around, Bloomberg reported on Tuesday, Reuters reported. The request will be included in a white paper on the company scheduled to be introduced in parliament on Wednesday, Bloomberg reported, citing a source. If approved, the funds would be paid out in stages, the report said. Felda, as the state-owned company is known, has been struggling to pay down debt amid financial losses and corruption allegations. The government of Mahathir Mohamad, who came to power last year after defeating Malaysia’s longtime ruling coalition, had vowed to look into Felda’s financial troubles and alleged graft. Felda and Malaysia’s Ministry of Economic Affairs, which is preparing the white paper, did not respond to requests for comment on the Bloomberg report. Read more