KUALA LUMPUR, Aug 23: The Government may set up a company to take overthe 304 Felda settlements in the country, expressing fear that lack ofinterest among the younger generation may result in the land being leftidle, the Prime Minister said today.

Faced by the problem of migrating children of Felda settlers, Datuk SeriDr Mahathir Mohamad said scheme, comprising nationwide oil palm and rubberplantations, might be managed by experienced companies.

This way the land could be better managed and revenue accruing from itcould be distributed among the settlers or land owners.

"We cannot force the settlers children, who have high qualifications, tocontinue tapping rubber or cutting oil palm bunches," Dr Mahathir told aPress conference after officiating the Malaysian Felda Generation Assemblyand Symposium at the International Islamic University here.

The Prime Minister noted that at present certain sections of Felda landremained idle or was put up for sale as children of the settlers were notinterested in the scheme.

"Soon all of them (land schemes) would be abandoned. We have not found aproper solution yet but the Ministry (Land and Co-operative Development)is studying the matter," he said, "Settlers might also be offered sharesin the management company if the idea was indeed implemented."

Dr Mahathir pointed out that the current dilemma was actually the problemof success as the situation came about due to the success of Feldafamilies in educating their children.

He said the problem was serious enough as there were no one to till theland and if foreigners were allowed to come in other problems might cropup.

"If we allow foreigners to come in, and if something happens, it will alsobe difficult," he said.

The Federal Land Development Authority (Felda) is the brainchild of secondPrime Minister Tun Abdul Razak. At present there are 304 oil palm andrubber land schemes with 120,000 families.

Out of the 600,000 second generation Felda children, more than 50,000 arein various professional fields while another 10,000 are pursuing theirstudies at institutions of higher learning.

Earlier in his speech, Dr Mahathir urged the younger generation of Feldacitizens to pursue financial management skills so that they couldeventually manage their properties effectively.

He said the very fact that Felda land schemes were abandoned proved thatthe land scheme project has managed to improve the living standard of thesettlers.

The younger generation of Felda citizens should be greatful that theirlife now is much better and secured compared to that of their parents.

Dr Mahathir told those present that though the Government was all forindustrialisation, it had never neglected the agricultural sector.

"However, only industries could provide jobs and contribute effectivelytowards our growth.

"So we want the people to be actively involved in the industrialisation ofMalaysia, invest and manage the industries in the country," Dr Mahathirsaid. "The Government has placed great hope on those from Felda schemes totake up the challenge."

The assembly today, organised by Gabungan Wawasan Generasi Felda (GWGF)was attended by more than 4,000 Felda settlers and their family members.

It was held to discuss their role and direction in the new millennium fromthe economic, social, educational and training aspects and to come up withproposals covering policy, strategy and assistance to upgrade the qualityof life of the Felda community.

At the function, Dr Mahathir launched the Felda Generation Vision Fund forthe education, training and welfare of the Felda community.

He also presented certificates of appreciation to three Felda familieswhich managed to educate their children to become professionals.

Also present at the function were Datuk Seri Dr Siti Hasmah Mohamed Ali,Land and Co-operative Development Minister Tan Sri Kasitah Gaddam, Feldachairman Tan Sri Dr Yusof Noor, GWGF executive chairman Tan Sri RozaliIsmail and IIU president Tan Sri Sanusi Junid.