06/01/2008 (NST Online) - Felcra chairman Datuk Nasaruddin Hashim said a study was being carried out and a decision would be made soon.

Met at the gotong-royong held at the Felcra Nasaruddin Belia Bota, near here, yesterday, he said currently, Felcra was supplying crude palm oil (CPO) to local refineries.

The decision on whether to produce cooking oil would also include the site for a palm oil refinery. Nasaruddin said this was because the earlier proposed site in Manjung was found to be unsuitable.

"That proposal has been put on hold. The site chosen earlier is unsuitable for the construction of a refinery as there is not enough supply of crude palm oil from our plantations in the area.

"In other words, we would have to buy from the private plantations, which is a bit of a paradox as we are the largest producer of crude palm oil in the country," said Nasaruddin.

It was reported in October 2005 that Felcra was looking at building a RM100 million palm oil refinery at an 8ha site in Lumut.

Former chairman Datuk Hamzah Zainuddin was quoted as saying that it had received approval for the development plans and operations.

The factory was to produce refined, bleached and deodorised (RBD) oil with capacity in place for biodiesel production.

Nasaruddin also said that Felcra was in the final stages of its restructuring exercise and would be submitting the report to the National and Rural Development Ministry soon.

"The exercise is aimed at making Felcra more efficient while adhering to its social responsibilities to its many settlers. So far, the corporatisation of Felcra has led it to good profits, but we want to aim for higher earnings," he said.

Set up by the government to rehabilitate idle and marginalised land, Felcra was corporatised in 1997.

Last year, Felcra recorded a net profit of RM38 million and Nasaruddin said they are aiming for a 20 per cent increase this year.

Nasaruddin was at the gotong-royong held to assist Felcra participant Sharudin Uda Talib, 45, whose house was destroyed in a fire in March last year.