The long-running dispute between Felda and the Terengganu state government over thousands of hectares of plantation land is heading toward a decisive moment, with the state warning that legal action will begin if no resolution is reached by November 29.
State Agriculture and Commodities Committee chairman Dato’ Dr. Azman Ibrahim confirmed that Felda had been given a 40-day grace period to respond to the state’s request concerning the management of FGV Setiu 1 Plantation and other lands — yet no formal reply has been received.
“They were informed clearly of what needs to be done. The deadline is final. If there’s no action by November 29, we will proceed legally,” Dr. Azman said.
According to him, the move will involve invoking Section 425 of the National Land Code, which provides for enforcement against illegal or unauthorized occupation of state land.
The state maintains that Felda has been operating on roughly 15,000 hectares of land in Terengganu — including the 1,742-hectare FGV Setiu 1 plantation — since 1985. The land, originally developed as an oil palm estate, was later managed by FGV Holdings Berhad.
Terengganu alleges that for more than four decades, Felda has profited from 14,791 hectares of land without fulfilling agreed financial obligations such as land premiums, tax payments, or profit-sharing with the state.
“This is not merely an administrative dispute — it concerns the rights of the state and the welfare of its people. We have shown patience, but fairness demands that the matter be resolved,” said Dr. Azman.
He added that the government is still open to reconciliation if Felda provides a satisfactory response before the deadline.
“We remain open to discussion, but the rights of the state are non-negotiable,” he affirmed.
The case underscores growing scrutiny over federal agencies’ management of state-owned lands, particularly where profit-sharing and legal ownership remain in dispute.