14/1/06 KUALA LUMPU (The Star)  -  Felda Holdings Bhd expects to invest at least RM100mil to develop an alternative crop as part of efforts to diversify the income source of its settlers, said chairman Tan Sri Dr Mohd Yusof Noor.

This initiative is part of Felda's long-term plans and the amount will be allocated from its budget of some RM400mil for this year. The budget does not include the allocation made by its subsidiaries.

“The amount to be invested depends on the size of land we obtain from State Governments. 

“We are now talking to a State Government to provide us a reasonable amount of hectares for this venture,” Yusof said after announcing Felda Herbal Corp Sdn Bhd's product ambassador, Akademi Fantasia 3 winner Mawi, yesterday.

He said Felda had to study the cost of infrastructure, mechanism and management needed in developing the alternative crop plantations.

Yusof said the alternative crop was to prevent settlers from being too dependent on oil palm should crude palm oil prices fall or become unstable.

“We are currently planting herbs as an alternative crop. Annually, this industry is worth some RM4bil in Malaysia alone,” he said.

To date, Felda has developed 801,800ha, comprising oil palm, rubber and sugar cane plantations. Of the total, 540,190ha have been allocated to settlers, with the remaining 351,610ha owned by Felda.

Of the 2,000-odd species, the herbs identified for planting included tongkat ali, kacip fatimah and misai kucing, which were in demand, Yusof said.

He said Felda also encouraged its settlers to develop their entrepreneurship to diversify their income. Currently, about 30,000 Felda settlers have started businesses or become contractors and shopkeepers.