Felda smallholders: Windfall for rubber smallholders - Malaysia. Felda-Eagle High Plantations deal and Felda housing project in the news


LMC report on about Felda smallholders, download here http://www.carbonstockstudy.com/resource-centre/reports "Consulting Report 12 – The Felda case study"


Key writers are Khor Yu Leng, Dr. Johan Saravanamuttu and Deborah Augustin. We also had a good session with Colin Barlow at his seminar talk on Felda last week, with photo below.

Seminar on Felda by Dr. Colin Barlow at IKMAS, UKM, Bangi 16 April 2015. About Dr Barlow: https://researchers.anu.edu.au/researchers/barlow-c; and remarkably, his NGO is helping 12,000 smallholders in eastern Indonesia - East Nusa Tenggara. I am sure he'll have a lot of practical implementation knowledge that he could share with the palm oil sector seemingly struggling with smallholder projects. He mentioned cocoa smallholders working with a US chocolate manufacturer.

A teaser, on Felda settler income outcomes (LMC - Khor, Saravanamuttu & Augustin, upcoming 2015): "Based on all Felda schemes, incoming settlers data shows that 40.1% had an income of RM100  or less, and 85.4% of settlers had an income of less than RM200. Only 9.8% of settlers had an income of more than RM200; from this percentage only 7.8% had an income between RM200-RM300 a month while only 0.2% had an income of RM500 or more a month. Overall, most Felda settlers had low income rather than no income prior to entering the Felda schemes (Bahrin, Perera & Lim, 1979, p. 203). The Felda project was specifically designed to initially target RM300 minimum monthly income. National settler net monthly income outcomes from oil palm plots (1979-2005 average): 4.1 ha, RM857; 4.9ha, RM905 and 5.7 ha, RM1,166 (which excludes labour cost; Bahrin and Lee, 2006, p.37); and an estimated RM 1,800 per month in 2014 from 4 ha oil palm entirely outsourced to Felda Technoplant i.e. including labour cost (Barlow, 2015a). Thus, delivering solid outcomes on primary income goals."


12 Feb 2017: Felda news items

New Felda chief targets turnaround in one year  FEB 8, 2017 - Five men, including two former senior officials of Felda, being remanded on Jan 25 to help with investigations into a caviar farm project in Pahang http://www.straitstimes.com/asia/se-asia/new-felda-chief-targets-turnaround-in-one-year

Now Shahrir says Felda didn't lose RM4.3b as reported  Published Today 7:38 pm -- "No money is lost. From the RM6 billion received when Felda Global Ventures Holdings Bhd was listed, we spent RM1.7 billion for Felda settlers to pay each family RM15,000.... ............ "The balance of RM4.3 billion was used for various reasons. Felda made one-off payments to the governments of Sabah (RM300 million), Pahang RM250 million, housing loan for Felda settlers RM400 million, management expenses RM883 million plus investments in property, both here and foreign countries, to buy shares and many others," he said. Shahrir was commenting on reports in a number of news portals that claimed RM6 billion received by Felda after the FGVH listing has not been accounted for. ........ He said RM1.438 billion was invested in property, namely in Bukit Katil, Malacca for RM304 million, Grand Borneo Hotel in Sabah (RM86 million), Grand Plaza Service Apartment in London (RM500 million), Institut Penilaian Negara (INSPEN) building (RM225 million) and Iris Corporation Berhad shares (RM110 million). Shahrir said the RM1.438 billion invested in the service sector, especially property involving hotels, was to ensure long-term investments that can be beneficial in the future. .... He said Felda had also purchased Felda Technoplant Sdn Bhd worth RM38 million while total accumulated loses for Felda amounted to RM108 million, involving the Transnovasi Project.....  Read more: https://www.malaysiakini.com/news/372216#ixzz4YTJd9nqv

Jadi RM4.3 bilion ini mana pergi? tanya Shahrir MOHD FIRDAUS YON 11 FEBRUARI 2017 http://www.sinarharian.com.my/nasional/jadi-rm4-3-bilion-ini-mana-pergi-tanya-shahrir-1.626497

Felda chairman: Where did RM4.3b from listing go? http://www.themalaymailonline.com/malaysia/article/felda-chairman-where-did-rm4.3b-from-listing-go

Felda's delayed 2015 financial statement to be announced soon BY RIZALMAN HAMMIM - 11 FEBRUARY 2017  http://www.nst.com.my/news/2017/02/211354/feldas-delayed-2015-financial-statement-be-announced-soon

Shahrir questions where RM4.3b from FGV had gone - Newly-minted Felda chairperson Shahrir Abdul Samad has questioned how RM4.3 billion in proceeds from Felda Global Ventures’ initial public offering (IPO) had been spent. “Felda received RM6 billion from the listing of FGV... From this amount RM1.7 billion was spent as windfall (for settlers). Read more: https://www.malaysiakini.com/news/372146#ixzz4YSrTTmzL

PKR: Shahrir's RM4.3b revelation underscores need for RCI Today 5:37 pm https://www.malaysiakini.com/news/372202#ixzz4YSs0whfF

26 Jan 2017: Windfall for rubber smallholders - Malaysia


Editor's note: Earlier this month, I was sitting next to Dr Chee, renowned rubber expert and we were chatting about smallholders, and he said that rubber smallholders were doing well, and earning more than their palm smallholder brethren.

Windfall for rubber smallholders BY RUBEN SARIO 23 January 2017 -- A hike in raw rubber prices has led to a windfall for smallholders in the state, some of whom have seen their monthly income increasing by as much as RM7,000. State Minister of Agriculture and Food Industry Datuk Seri Yahya Hussin said he was happy for the rubber smallholders. Yahya said the international price of Standard Malaysian Rubber 20 (SMR 20) had doubled from its low of RM4.70 per kg in early last year to current prices of RM9.68. He said the increase was due to a shortage in supply in the world market in the wake of flooding in southern Thailand. Yahya said the smallholder rubber prices in Sabah had increased from a low of RM1.50 per kilogram for cuplumps at 50% dry rubber content to a high of RM3.75 per kilogramme. “The increase has resulted in rubber smallholders earning between RM2,500 per month to RM7,000 per month. Read more at http://www.thestar.com.my/metro/community/2017/01/23/windfall-for-rubber-smallholders-they-are-now-earning-more-after-prices-for-raw-material-increases/#th18X5zYoD5lfoSt.99

14 Jan 2017: Felda-Eagle High Plantations deal and Felda housing project in the news

Editor's note: Interesting question if China is funding the Felda housing project via a small Singapore trading outfit.

4 Jan 2017, 31 Dec 2016: Felda-Eagle High Plantations deal in the news -- see here, http://khorreports-palmoil.blogspot.my/2015/04/corporate-news-indomie-morocco-delta.html

FELDA tangani isu PFI Oleh Ahmad Suhael Adnan 12 JANUARI 2017 http://www.bharian.com.my/node/233715

Construction of Felda housing project to begin soon, September 06, 2016 -- The Federal Land Development Authority (Felda) plans to start the construction of single-storey terrace houses under the Felda New Generation Housing programme in one or two months, chairman Tan Sri Mohd Isa Abdul Samad said. He said under the programme undertaken nationwide, 11,530 residential units were scheduled to be built with a gross development value of RM1 billion, but experienced a delay in commencement due to a financing mechanism problem. "However, the issue was resolved as we opted for a private funding initiative via Putra Star Investment Holdings Pte Ltd. "We have appointed Terranova Builders Sdn Bhd as the housing developer," Mohd Isa told a press conference after the signing of an agreement between Putra Star, Terranova and Perumahan Felda Sdn Bhd  to facilitate the construction here today...
http://english.astroawani.com/business-news/construction-felda-housing-project-begin-soon-116089

Felda Guna Putra Star Investment Kutip Dana Dari China? Soal Rafizi Published on 11 Jan 2017 https://www.youtube.com/watch?v=mONbfWByImg

Tell us the names of your housing contractors, Rafizi urges Felda By Chester Tay | January 3, 2017 -- On Dec 2, 2015, Rafizi requested a detailed disclosure of all contractors involved in Felda’s member housing projects, and deputy minister in Prime Minister Department Datuk Razali Ibrahim merely disclosed information regarding projects that have been completed. “For projects like the PGBF (Perumahan Generasi Baharu Felda), which have not been completed, he (Razali) did not provide the contractors’ name,” Rafizi said. According to Felda’s FY2014 financial statement, expected losses for Felda member housing projects skyrocketed to RM192.82 million, from just RM28.46 million in FY2013. “We have also contacted nationwide Felda activists to show us how many Felda housing projects have been abandoned, with nothing more than just a signage left behind,” he added. — theedgemarkets.com http://www.theedgeproperty.com.my/taxonomy/term/987/all


Rafizi Ramli was live. January 12 at 1:27pm · "Siapa di belakang syarikat Putra Star Investments ini?" https://www.facebook.com/rafiziramli.keadilan/videos/vb.145165568851292/1385327438168426/?type=2&theater




30 July 2016: Najib points to social mobility of Felda settlers' children, Crown Prince of Johor comment,  Felda investment unit, Rajawali likely to ink stake deal soon


PM: Children of Felda settlers in Klang Valley proof of social mobility BY KAMLES KUMAR  http://www.themalaymailonline.com/malaysia/article/pm-children-of-felda-settlers-in-klang-valley-proof-of-social-mobility#sthash.zURXzuo1.dpuf

Felda taking money from the poor, alleges TMJ 28 Jul 2016 -- The Crown Prince of Johor, Tunku Ismail Sultan Ibrahim, better known as TMJ for the Malay acronym of his royal title, has accused the Federal Land Development Authority (Felda) of taking money meant for the people to enrich contractors and high ranking company officials.... https://www.malaysiakini.com/news/350170

Minister rebuts TMJ, says Felda must generate own income Published 28 Jul 2016 -- The government today denied allegations by Johor Crown Prince Tunku Ismail Sultan Ibrahim that the Federal Land Development Authority (Felda) has deviated from its original purpose of eradicating poverty. Rural and Regional Development Minister Ismail Sabri Yaakob told reporters in Putrajaya that Felda was encouraged to generate its own income and be more financially independent.  “Felda has never deviated from its original path. Felda, from the beginning, has been restructuring the community (by) providing land for Malays who had no land to boost their income, and others. “When Felda engages in business, it does not mean that it is deviating from the original path. Felda, once upon a time, when it was formed, received a lot of financial assistance and support from the government,” said Ismail, as quoted by online portal Free Malaysia Today. https://www.malaysiakini.com/news/350237

Felda investment unit, Rajawali likely to ink stake deal soon BY AFIQ ISAandIZWAN IDRIS 28 July 2016 -- PETALING JAYA: An investment unit of the Federal Land Development Authority (Felda) may sign an agreement for the acquisition of a significant stake in Indonesian planter Eagle High Plantations Tbk. According to sources, representatives from the Rajawali Group and Felda may be meeting in Jakarta next week for a signing ceremony to conclude the deal, which has been over a year in the making and has undergone several iterations. ...http://www.thestar.com.my/business/business-news/2016/07/28/eagle-high-deal-at-final-stage-of-conclusion/

Stock With Momentum: Felda Global Ventures Holdings By Asia Analytica / The Edge Financial Daily   | July 26, 2016 http://www.theedgemarkets.com/my/article/stock-momentum-felda-global-ventures-holdings

25 July 2016: Agenda to develop Felda, nation remains as govt’s top priority, Najib says 

Agenda to develop Felda, nation remains as govt’s top priority, Najib says - See more at: http://www.themalaymailonline.com/malaysia/article/agenda-to-develop-felda-nation-remains-as-govts-top-priority-says-najib#sthash.UBEqOBQT.dpuf

17 July 2016: Felda warns settlers against getting involved with IS


Felda warns settlers against getting involved with IS  Bernama     10 Jul 2016  The Federal Land Development Authority (Felda) will take stern action against its settlers or family members if they are found to be involved with the Islamic State (IS) militant group. Its chairperson, Mohd Isa Abdul Samad, said actions that would be taken were in line with the existing laws in the country, as well as Felda's laws.  "For instance, if those involved (with IS militants) are from (Felda's) second generation and have applied to buy houses we built for them, we will reject. Any other actions will be reviewed from time to time. "Even so, I believe the police and army are more capable in identifying those involved or supporting the activities of this militant group. We, however, are looking at the issue seriously," he told reporters at his Aildilfitri open house in Port Dickson today. https://www.malaysiakini.com/news/348091

10 July 2016: Support govt for your future, Azalina reminds Felda settlers; Najib - Felda as a powerhouse for another 100 years or more 


Support govt for your future, Azalina reminds Felda settlers July 4, 2016 -- She says Felda may be one of the first organisations the Opposition will possibly shut if it takes over the government. http://www.freemalaysiatoday.com/category/nation/2016/07/04/support-govt-for-your-future-azalina-reminds-felda-settlers/

Najib wants Felda to be economic powerhouse  March 15, 2016 -- KUALA LUMPUR: Prime Minister Datuk Seri Najib Tun Razak said yesterday he wanted Felda to become an economic powerhouse that will continue to champion the plight of settlers into the next generation. He said the desire of the government in setting up Felda was to not only champion the plight of the first-generation settlers but also the second and third generation and for another 100 years or more.  “It is for this reason that we developed Felda, we established FGV (Felda Global Ventures Holdings Berhad), we have taken all kinds of measures to make Felda an economic powerhouse,” he said. Najib spoke at the launch of the Kami Anak Felda (KAF) organisation, the Kesejahteraan Adiwangsa Felda book, the Wada-Kemboja humanitarian mission fund and the Prihatin Jantung Anda programme, here. He said that the government wanted Felda, besides becoming an economic power house, to also become a political power house to ensure the continuity of Felda. Read more: http://www.theborneopost.com/2016/03/15/najib-wants-felda-to-be-economic-powerhouse/#ixzz4DyxVwBhq

25 June 2016: RM50 million Eid festival bonus for Felda settlers excludes 13,589 who do not sell their FFB to Felda


Najib announces ‘duit raya’ of RM49.52m for Felda settlers Bernama      22 Jun 2016 https://www.malaysiakini.com/news/346242

PAS cries foul as over 13,000 Felda settlers denied 'duit raya' 23 Jun 2016 -- PAS has criticised the government for denying Hari Raya incentives to 13,589 Felda settlers. This was after Prime Minister Najib Abdul Razak yesterday announced RM49.52 million "duit raya" to 99,046 Felda settlers. The remaining settlers did not qualify for the payout as they sell their produce to third parties instead of Felda. PAS Felda affairs chief Naraza Muda said the government should not be punishing Felda settlers who choose to be independent.... https://www.malaysiakini.com/news/346401

Malaysia Paddy Fields Are Najib’s Battlefield to Woo Voters by Shamim Adam June 20, 2016 http://www.bloomberg.com/news/articles/2016-06-19/malaysia-paddy-fields-become-battlefield-for-najib-to-woo-voters

Meeting K Kangsar folk’s needs is Mastura’s priority Bernama     23 Jun 2016 -- The mother of four is the widow of the previous Kuala Kangsar MP, Wan Mohammad Khair-il Annuar Wan Ahmad who died in a helicopter crash with five others in Sebuyau, Sarawak on May 5. Mastura has a list of things on her agenda, including visiting the site for the building of the Malaysian Palm Oil Board’s (MPOB) training centre, which had been promised by her late husband who was the MPOB chairperson. On her status of still being in the ‘edah’ period, Mastura said she had asked for views and guidelines from Perak mufti Harussani Zakaria in carrying out her tasks. “According to the mufti, If I am required to serve (the people), I am allowed to go out but certain things like celebrating the win is not permitted,” she said.... https://www.malaysiakini.com/news/346328




13 December 2015: How Felda mobilised 10,000 for ‘red shirt’ rally


How Felda mobilised 10,000 for ‘red shirt’ rally 11 Nov 2015  The total number of Felda settlers who joined the rally was estimated to be 10,000, according to the parliamentary reply, she said. This means that about 10,000 Felda settlers joined the red shirt rally, she surmised. Many of the settlers were transported to Kuala Lumpur in buses. About RM1mil spent ... government-backed Village Development and Security Committee (JKKR) and the Coalition of Women's Movement (GPW) for giving RM925,000 to fund the ‘Felda rally’. https://www.malaysiakini.com/news/319014


8 June 2015: Could segregated palm oil exclude small producers, Felda subsidises 30% of settler children student loans


FGV, Felda Group pullout from RSPO certs 'done in settlers' best interest' BY OOI TEE CHING - 9 MAY 2016 Read More : http://www.nst.com.my/news/2016/05/144685/fgv-felda-group-pullout-rspo-certs-done-settlers-best-interest

Could Europe’s drive to segregated palm oil exclude small producers? By Caroline Scott-Thomas+, 02-Jun-2015 A European push toward segregated certified sustainable palm oil may inadvertently exclude smaller producers from the supply chain, says GreenPalm manager Bob Norman. http://www.foodnavigator.com/Policy/Could-Europe-s-drive-to-segregated-palm-oil-exclude-small-producers

Felda subsidises 30% of PTPTN loans taken by its settlers' children Last updated on 27 May 2015 - 08:35pm Shahrim Tamrin KUALA LUMPUR: Felda is subsidising 30% of the National Higher Education Fund (PTPTN) study loan taken by its settlers’ children for their diploma and bachelor degree studies at higher education institutions. Its director-general Datuk Hanapi Suhad said last year they channelled RM16 million for 1,825 students who are the sons and daughters of Felda settlers.
He also said Felda had provided RM200 million for various technical and human capital training schemes in public and private higher education institutions for 42,059 students from 2005 to 2010.
He earlier attended a signing ceremony of a memorandum of understanding with PTPTN in Menara Felda here today. PTPTN chairman Datuk Shamsul Anuar Nasarah praised Felda’s move, describing the initiative as part of the National Blue Ocean Strategy.
http://www.thesundaily.my/news/1433131

5 May 2015: Rompin retained by BN but with majority halved, summary of campaign


BN retains Rompin, majority reduced by almost half Published: 5 May 2015 8:52 PM ; Hasan Arifin, Barisan Nasional's candidate in the Rompin by-election looks set to win the parliamentary seat, which was previously held by the late Tan Sri Jamaluddin Jarjis. – The Malaysian Insider pic by Najjua Zulkefli, May 5, 2015.Hasan Arifin, Barisan Nasional's candidate in the Rompin by-election looks set to win the parliamentary seat, which was previously held by the late Tan Sri Jamaluddin Jarjis. – The Malaysian Insider pic by Najjua Zulkefli, May 5, 2015.Barisan Nasional (BN) today comfortably retained the Rompin parliamentary seat in the by-election for the Pahang southeastern constituency, albeit with a much lower majority. BN’s Datuk Hasan Arifin defeated PAS’s Nazri Ahmad with a majority of 8,895, according to the Election Commission (EC) announced at 10.23pm. Hasan obtained 23,796 votes while Nazri obtained 14,901, in a by-election that saw a 73% turnout when polls closed at 5pm earlier today. There were 501 spoilt votes. In 2013, the late Tan Sri Jalamudin Jarjis won the seat with a 15,114 majority in another straight fight against PAS’s Nuridah Mohd Salleh. 85.5% of the 53,596 registered voters in the constituency turned out for the 2013 elections.
http://www.themalaysianinsider.com/malaysia/article/bn-set-to-retain-rompin

Live updates: Rompin by-election polling day; Reporting by Ahmad Fazlan, Zaini Hardy, Nawar Firdaws, Ahmed Syahril, Zalikha Ameera, and Arif Kartono; ROMPIN, May 5, 2015: 6pm. Voter turnout for the Rompin by-election after polls were closed is at 73 per cent of the 52,744 registered voters, 7 percent below the EC’s target........ http://www.therakyatpost.com/news/2015/05/05/live-updates-rompin-by-election-polling-day/


Is PAS candidate a threat to BN's hold on Rompin? 2015-05-05 11:12  ROMPIN, May 4 (Bernama) -- After 13 days of campaigning for the Rompin parliamentary seat by-election since the nomination of candidates on April 22, the 53,294 voters will decide tomorrow as to who will represent them.
Is the PAS candidate, Nazri Ahmad, the son of a Felda Keratong 5 settler, near here, and Pahang PAS Youth chief who has been stressing on him wanting to carry the voice of the young generation who make up over 40 per cent of voters in the area, capable of being a threat to this Barisan Nasional (BN) stronghold. BN is fielding Datuk Hasan Arifin who has lots of experience in politics and the state's administration. Political observer Prof Datuk Abdul Halim Sidek opined that both candidates had their own strengths, hence creating a stiff contest for the seat. .......Since the campaign started, PAS has been focusing on two main issues - the Goods and Services Tax (GST) and Felda, especially the housing problem faced by the second generation Felda settlers, considering that voters in close to 20 Felda land schemes in the Rompin constituency form 51.51 per cent of eligible voters in the area.
In fact, the two-day gathering of Felda settlers at Felda Keratong 4 previously touched on the GST while yesterday there was a talk on GST in Bandar Muadzam Shah. BN was not to be let down, instead it aggressively countered all of PAS' claims and resolved to solve the house price issue faced by the second generation Felda settlers by reducing the price from RM125,000 to RM90,000 per unit and to introduce the rent-purchase concept. Universiti Sains Malaysia (USM) lecturer, Prof Dr Ahmad Atory Hussain sees BN as having a very good chance of winning the by-election based on the candidate factor in terms of experience in politics and administration. Hasan was Pahang menteri besar from 1995 to 1999 and a former assemblyman for Tioman and Bukit Ibam in the Rompin parliamentary constituency, for four terms from 1990. ........Since nomination day, Hasan has been focusing on local issues, especially those faced by the young generation including the housing problem of the second generation Felda settlers, his intention to assist young people through high-impact fishery activities, and to boost tourism and modern agriculture which could give them lucrative returns. His appeal for the prime minister to review the house price for the second generation Felda settlers in Rompin due to their financial constraints bore fruit when last Saturday, Datuk Seri Najib Tun Razak announced a reduction in the original price offered from RM125,000 to RM90,000........ http://www.mysinchew.com/node/108578

4 May 2015: Q&A on new 20,000 Felda homes policy and Felda second generation income questions; Rompin parliament constituency has 53,596 voters, with 87% comprising Malays living in 14 Felda settlements, Rompin by-election by Bridget Welsh

Question:  Can you give me an idea of the typical monthly income of a Felda settler? I am trying to judge the adequacy of the housing carrot being dangled for Rompin.
Answer: RM 1.4 billion appears to have been set in 2013 for 20,000 new homes for second gen @RM70k each? However, news articles report RM90,000 per home (reduced from RM124,000). How much is subsidy portion versus loan portion for the new home? What is extra or specific to Rompin? We looked at Felda settler issues and the most recent data on settler income was from Jengka by Colin Barlow; he found RM1,800/month from FFB from 4 hectare plot and possibly another RM600/month from other sources for 2014. So, if it's say RM24,000 per year of net income; a RM70,000 home is about 3x. What's the second generation income level? Aside from those urban dwelling, are all second generation of higher income than parents (Felda settlers) or are there some in the rural areas with lower income? Certainly, the education attainment were mostly higher than parents (who were selected from the poorer and/or landless segment who on average had income below RM200/month before joining Felda as settler, data as of 1979). Is the new Felda home policy focussed on second generation still residing in Felda areas in overcrowded settler homes? Note that 20,000 homes represent about 3.5pct of the second generation of 4.8 kids per settler.
PS. Look out for a piece by Bridget Welsh on Rompin soon.

Question: If the Felda second generation are working in agriculture then income should be comparable to first generation? Unless, they are merely resident in Felda areas and working elsewhere. In any case, it's interesting to learn that at RM2,500/month such Felda settlers are well above the median wage level.
Answer: We need the household survey to know how many person in one house - what ratio under and over peopled? But the new house numbers are relatively small at 3.5pct of second generation for the new homes; so is this a targeted policy for a small segment of second generation still rural residing and facing issues? Or is it case that the Felda settler transfer of ownership to one of 4.8 kids is really quite smooth, as most all are in the urban setting and not needing a rural home and income ? i.e. the Felda settler passes on rural nest egg to urban kids.

Abandoned by allies, PAS’s Rompin campaign a dull affair BY MOHD FARHAN DARWIS Published: 4 May 2015 2:48 PM; The lacklustre campaigning suggests that PAS has lost its mojo without DAP and PKR by its side. The latter are busy in the Permatang Pauh by-election campaign, which PKR president Datuk Seri Dr Wan Azizah Wan Ismail is contesting. However, Temerloh MP Nasruddin Hassan played down the matter and insisted all was well on the campaign front. “About 70% of the (Rompin) voters come from Felda settlements. So we are concentrating on those areas,” he told The Malaysian Insider when met at the Hindar 2.0 ceramah yesterday....The Rompin parliament constituency has 53,596 voters, with 87% comprising Malays living in 14 Felda settlements. The second biggest voters are the Orang Asli, followed by 9% Indians and just 2% Chinese. Tuan Ibrahim told The Malaysian Insider that PAS did not employ a general campaign strategy, and instead relied on different approaches for each area, based on the economic activities of the voters. “Our approach is not the same in each area. Our focus is on Felda settlements, so we have to deal with agencies. The mechanism is rather different. “We approach the farmers and the fishermen of Rompin differently. We visit the voters’ homes and employ a welfare approach,” said Tuan Ibrahim. Political analyst Professor Dr Mohamad Agus Yusoff said the factors working against PAS were the fact that it was on its own in the by-election, and that Rompin was an Umno stronghold.....He said the silent voters, who compromise the youth working in the cities, could turn PAS’s fortune around. “There are second- and third-generation Felda settlers who have different views from their parents,” said Agus. Prime Minister Datuk Seri Najib Razak appears to be aware of this, and took the opportunity to win the vote bank over by reducing the price of houses from RM124,000 to RM90,000 per unit. However, Umno vice-president Datuk Seri Hishammuddin Hussein has denied that Najib was using the house prices as election goodies, and said that the latter’s announcement was merely a “coincidence”. - See more at: http://www.themalaysianinsider.com/malaysia/article/abandoned-by-allies-pass-rompin-campaign-a-dull-affair#sthash.tHeHOEg8.dpuf

Pmtg Pauh, Rompin - markers of political future By Bridget Welsh  8:11AM May 4, 2015; Rompin has not received the same level of attention as Permatang Pauh, at least in the English language media, but it is equally important. At issue is Prime Minister Najib Abdul Razak's political future.
...  Today's reality is that there is open opposition to Najib's leadership within Umno led by former leader Dr Mahathir Mohamad and nationally, as the premier has the lowest public support in his tenure. It is thus not surprising that the stakes are high in Rompin, for a reduction in support in Rompin will signal trouble to Najib's political future....... Unlike Permatang Pauh, where a reduction in the majority is expected, given Najib's position and resources, even a small decline in support will be perceived negatively.... From goodies to grumbles -  By-elections have traditionally been 'buy-elections', with goodies galore. The BN, with its hand on the national till and control over the mainstream media, has always had the advantage, especially in the more semi-rural and rural areas. Given the stakes in these contests, there are many items on offer, with even the Penang government making promises of new projects. It remains to be seen how impactful the use of financial incentives will be this time round. One item that is marginally different than GE 2013, and reminiscent of conditions surrounding GE 2008, is a perceived decline in the economy. Ordinary Malaysians are feeling the economic pain, compared with the past, with a depreciated ringgit, the goods and services tax (GST), inflation and lower purchasing power...... Even in the Felda areas of Rompin, where the drop in the prices of rubber and palm oil has hit hard, there is a sense of relative economic deprivation. More than any issue - rights, religion or race - the main driver in voting in Malaysia is the economy, as surveys consistently show that the main issues that concern voters are the bread-and-butter realities..... As the campaigns come to a close, the promises of allocations have risen, with less open defence of the GST and more attention to where GST funds will go - be it towards civil servants, higher pensions and more........The expectation for both contests is reduced majorities. The main reasons for this is the expected lower turnout, with voting coming after a long holiday weekend, the negative mode of the campaigns, active sabotage and weakened support for both sides....
http://www.malaysiakini.com/news/297149

1 May 2015: Sarawak smallholder issues, PAS woo Felda settlers and youths, the question of FGV's low share price,

Masing: Stricter enforcement needed to stop FFB thefts posted on April 30, 2015, Thursday
“In July 2014, a joint operation known as ‘Ops Sawit Kenyalang’ was conducted by agencies such as Malaysian Palm Oil Board (MPOB), Immigration Department, the police,, Ministry of Domestic Trade and Consumer Affairs, State Security Unit, and State Attorney General Chambers. “MPOB has also frozen the issuance of new FFB dealers’ licence. A quota of two metric tonne per hectare per month had also been imposed to limit the sale of FFB by each smallholder. “This is to prevent smallholders from selling excessive volume of FFB, which may have been stolen from affected plantations. In addition, palm oil mills and FFB dealers are required to submit monthly the list of their FFB sellers to MPOB for monitoring purposes.” Meanwhile, to a point raised by Opar assemblyman Ranum Mina, Masing said as of March 31, 2015, of the 23 investors approved to develop NCR land in the state, 21 of them had successfully develop underutilised NCR lands owned by rural folk. “These investors have established 30 joint-venture companies (JVCs) with the NCR landowners in 33 projects. So far, 77,176 hectares have been fully planted with oil palm under these JVCs. “Up to March 31, 2015, RM 160.1 million has been paid by JVCs to the participating NCR landowners.” Touching on a request by Engkilili assemblyman Johnichal Rayong Ngipa that the outstanding loans of the settlers in Skrang Settlement Scheme be written off and land titles issued to them, Masing said 798 out of the 1,363 settlers in the seven Settlement Schemes in the state had fully settled their loans...........  http://www.theborneopost.com/2015/04/30/masing-stricter-enforcement-needed-to-stop-ffb-thefts/#ixzz3YtqS0fZu

The Iban longhouse that stood up to BN and prospered BY SHERIDAN MAHAVERA Published: 4 May 2015 11:00 AM; Starting in the state 2006 election, the longhouse voted for the opposition Sarawak National Action Party. They voted for PKR in the 2011 state election, and in the 2008 and 2013 general elections. But retribution was swift, said the 50-year-old Adam. "Our names would be blacklisted at the district office when we went to ask for fertiliser and seeds. "Sarawak BN leaders would go around and tell other longhouses, 'Don't be like Pelepok, which voted for the opposition and now has to suffer'.” The brothers helped set up other families in the longhouse with their own pepper or oil palm orchards, lending them seeds and fertiliser....Off-road pick-up trucks and motorcycles zip down the lane in front of the longhouse as residents haul the pepper harvest to Betong town. In 2009, the brothers collected RM80,000 to hire contractors to build their own road to connect the village to the outside world instead of waiting for the government. "The road really helped boost our economy," said the middle child, Angut, adding that it allowed farmers to bring their harvests to the Betong market faster. Although it is a rutted, pock-marked dirt road that is only accessible by a four-wheeled drive vehicle, it is better than having to trek five hours through steep hills and jungle to reach Betong. A bunch of villagers using their own money to build their own road is almost unheard of in villages across Malaysia, where rural folks are accustomed to depending on the government for such facilities. In Sarawak, it is almost legendary....When the Sarawak government heard that Pelepok was building a small dam in early 2014 to install a mini-hydro system which would give them free electricity, electrical poles went up a month later, from the main road to their longhouse, said Adam. The poles and cables were put up by Sarawak Energy but electricity has yet to be connected. “They said we would get electricity by the end of 2014. But there has been nothing until now,” said Adam. The electricity poles, he claims, were a ploy to get the longhouse to abandon the mini-hydro project and to get votes. It is widely known that many communities in the Sarawak and Sabah interior have neither roads nor running water or electricity. PR claims that Sarawak BN politicians often withhold these basic services in order to win votes. Once the mini-hydro system is complete, Pelepok folk would get uninterrupted electricity without having to wait for the state government. Each family in the longhouse currently forks out about between RM150 and RM200 a month for their diesel generators. Like the road, Pelepok’s own supply of cheap electricity would break the notion that an indigenous tribe's success was dependent on their continued support for the government, said Vernon Aji Kedit, who is Sarawak PKR information chief. The mini-hydro project is being funded by non-governmental organisation Light Up Borneo, which also designed and paid for the system’s components. Sarawak PKR rounded up volunteers to help the longhouse folk install the system - See more at: http://www.themalaysianinsider.com/malaysia/article/the-iban-longhouse-that-stood-up-to-bn-and-prospered#sthash.E3vqib7I.dpuf

PAS out to gain support from Felda settlers in Rompin 2015-04-25 10:45  ROMPIN, April 24 (Bernama) -- PAS is going all out to woo Felda settlers in the Rompin Parliament by-election, including organising a two-day gathering, to entice settlers in Felda Keratong 4, starting tomorrow.
PAS Vice President Datuk Tuan Ibrahim Tuan Man did not deny that the voters from the 14 Felda settlements in Rompin Parliament which constitute 51.51 percent from 53,294 total voters in the area, was the main focus of the party in the by-election. The gathering which will be kicked off by PAS President Datuk Seri Abdul Hadi Awang will include Felda settlers with programmes ranging from dialogue with settlers to traditional sports and trade exposition, he said at the party's daily press conference here today. Tuan Ibrahim said the party was also focusing on gaining support from fishermen in Tioman which include Pulau Tioman, and also the Orang Asli community in the Bukit Ibam state seat. Besides current issues like Goods and Service Tax (GST), the party will be playing up issues on mining activities in Bukit Ibam and the development of new townships in Rompin, he said. Touching on the lack of the party posters in the current by-election, he said PAS was now concentrating on the new social media which he believes will reach a bigger audience, besides concentrating on face to face campaigning. He said the party has brought in 5,000 campaign workers to garner support for party candidate Nazri Ahmad.......... http://www.mysinchew.com/node/108315

ROMPIN HEATS UP: Political flags burned at Felda settlement - Bernama Saturday, 25 April 2015 07:05; ROMPIN - The police are investigating two incidents involving the burning of political flags at Felda Selancar 2 here yesterday. Head of the Police Media Centre for the Rompin by-election, Supt Abdul Aziz Mahmud said the two cases were being investigated for mischief and damage. Upon conviction, offenders are liable to be jailed a maximum of two years or fined, or both......... http://www.malaysia-chronicle.com/index.php?option=com_k2&view=item&id=500341:rompin-heats-up-political-flags-burned-at-felda-settlement&Itemid=2#ixzz3YtGT93eF

Over 300 Felda settlers join PAS in Rompin by-election campaign ROMPIN, April 28, 2015:
Although Felda has been considered a votebank for Umno, PAS says it is gaining support among the settlers in Rompin. — TRP pic by Mokhsin Zamani; PAS’ Standing Committee of Environmental Management chairman Andansura Rabu said a total of 305 Felda settlers have joined PAS for the Rompin by-election. “Last night we received more applications from 100 Felda youths who are the second generation of the government agency.” The Beserah state assemblyman said the settlers joined the party following the recent “Perhimpunan Selamatkan Felda 2.0″ held in Keratong.
“This shows that the reception towards PAS is positive and this is encouraging.” PAS is slowly making headway in the settlements by raising issues concerning Felda Global Ventures Sdn Bhd. Banking on Felda chairman Tan Sri Isa Samad’s 2011 appointment prior to the plunging of the government agency’s shares, Andansura said more settlers were becoming brave. “It is positive to see that many of the younger generation are showing their courage by coming out in the open to support us. “We hope many others will do so in the future.” When probed whether more would be joining the Islamic party in the coming days, Andansura said the number was going to get bigger. “We believe more will be joining PAS in the next few days.” ............ http://www.therakyatpost.com/news/2015/04/28/over-300-felda-settlers-join-pas-in-rompin-by-election-campaign/

Felda settlers facing housing, financial woes; ROMPIN, April 26, 2015: Besides the recent plunge in Felda Global Ventures Holdings Bhd’s (FGV) shares, other issues are also plaguing Felda settlers specifically in Rompin. Speaking to The Rakyat Post, second generation Felda settler Zailan Yusof claimed settlers were currently faced with a string of woes especially the issue of affordable housing.
“In Keratong 4, there are some 400 families. “To us second generation settlers, the houses are not enough.” He alleged that affordable houses were given away to non-settlers and this he claimed had become a bane for them. The 45-year-old teacher, who was born in Keratong 4, called for transparency on the part of FGV and the Pahang state government. “There are cases where one non-settler gets about two to three houses. This in unfair,” he claimed. Persatuan Anak Anak Felda Kebangsaan information chief Naraza Muda alleged that many first generation settlers were beleaguered with debts, some reaching up to RM150,000. “The current value of their properties has not been disclosed but they have run up huge debts,” he said, speaking to a 1,000 strong crowd who turned up for the Islamic party’s ‘Selamatkan Felda 2.0′ (Save Felda 2.0) gathering yesterday in Keratong 4. In Rompin, Naraza said Felda settlers were facing sosio-economic issues as well, leading the NGO to conduct regular dialogue sessions to bring awareness to residents here.........
http://www.therakyatpost.com/news/2015/04/26/felda-settlers-facing-housing-financial-woes/

Felda shares will bounce back, analysts assure settlers – Bernama Published: 29 April 2015 3:08 PM; Settlers who owned shares in Felda Global Ventures Holding Berhad (FGV) need not worry about its price as it has potential to grow in future, said market analysts. Stock analyst, Nazarry Rosli, said FGV share price is in line with the palm oil market which is experiencing a fall in price but the situation is not worrying. "At the moment, not only is FGV counter trading at a low level but the trend affects all palm oil linked counters as a result of the low palm oil price..... "Nonetheless, the situation is not long term as the world palm oil market is expected to stabilise soon," he told Bernama today. He denied allegations by PAS that the government listed FGV shares in Bursa Malaysia was to the detriment of Felda settlers.   Nazarry also agreed with the recent statement of Deputy Prime Minister Tan Sri Muhyiddin Yassin that the government set up FGV to ensure Felda grows into a successful corporate body.......... Nazarry, who is also Jupiter Securities Sdn Bhd director, advised settlers who own FGV shares to keep them and not to sell to avoid realising losses. In fact he encouraged other investors to take the opportunities to invest in FGV shares as it was rather low and cheap now. Based on Bursa Malaysia closing on Tuesday, FGV shares were traded at RM2.07 compared to RM4.45 when the shares were opened to retailers on June 28 2012. The view is also supported by economic analyst Professor Dr Mohd Fauzi Mohd Jani who clarified that the fall in crude oil price had affected palm oil price............ http://www.themalaysianinsider.com/malaysia/article/felda-shares-will-bounce-back-analysts-assure-settlers-bernama#sthash.ZDEPczUh.dpuf

Felda Global Ventures eyes brownfield plantations to maintain cash;  BAHAU, May 1 — Felda Global Ventures Plantations (M) Sdn Bhd (FGV) says it will continue to acquire old oil palm plantations at a time when the company is carrying out aggressive replanting activities to maintain financial flow and profit. Executive vice-president and head of plantation cluster Abdul Halim Ahmad said the company is looking to acquire an estimated 15,000 ha. of brownfields a year, the same hectarage in its replanting programme. "We already have between 25,000 to 30,000 ha. of brownfields, and we are also eyeing 20,000 ha. to ensure stable cash flow for the company," he told reporters on a media visit here today. Abdul Halim said Felda Global's profit is expected to grow by up to 25 per cent in five years as its oil palm trees mature. He said replanting 15,000 ha. would cost RM135 million in the first year, rising to RM172.5 million in the second year after adding RM37.5 million in farm maintenance costs. FGV's planned acquisitions of brownfields in Malaysia, Indonesia and Papua New Guinea are expected to be finalised by year-end, he said, adding brownfield acquisitions normally exceed 10,000 ha.   Funding for the acquisitions would come from its 2012 initial public offering proceeds, he said. FGV has a landbank of 467,755 ha., including 56,422 ha. in Indonesia. Out of the total, 350,394 ha. are oil palm plantations................ http://www.themalaymailonline.com/money/article/fhv-eyes-brownfield-plantations-to-maintain-cash#sthash.u1AsUrbl.dpuf

26 April 2015: In 2013, Felda allocated RM1.4 billion to build 20,000 units of affordable homes (at RM70,000 each?) nationwide in five years to enable the second generations to own homes; Rompin Parliamentary seat fell vacant after incumbent Tan Sri Dr Jamaluddin Jarjis was killed in a helicopter crash at Semenyih; As Rompin had 14 Felda land schemes, the issue of second generation Felda houses, was close to the hearts of voters in the areas

Don’t be duped by opposition, Muhyiddin tells Rompin Felda settlers – Bernama Published: 26 April 2015 4:36 PM; Muhyiddin gave assurance that as long as BN was in power, the interests of the Felda settlers would continue to be protected in terms of development, education and the economy. "The history of Felda began when the late Tun Abdul Razak wanted to assist the people to overcome poverty and one of the approaches taken was the distribution of land that could be developed so that the settlers would have a brighter future. "However, this has become history, now many of the Felda areas have become new growth areas with better stadard of living compared to when they were first developed," he said. The Felda settlers at first lived in wooden houses, but they now lived in brick houses, he added. "The houses probably had one or two bedrooms in the past but now, they have grown bigger when more vehicles could be seen in front of the houses during Hari Raya. This shows that the settler community now enjoy many facilities and live more comfortably," he added. – Bernama, April 26, 2015. - See more at: http://www.themalaysianinsider.com/malaysia/article/dont-be-duped-by-opposition-muhyiddin-tells-rompin-felda-settlers#sthash.MaiTHAnb.dpuf

Felda has never cheated settlers, says chairman – Bernama Published: 24 April 2015 12:05 AM; He said the Felda community should accept that no comfortable house could be built at a cost of RM90,000. "We have no intention of cheating the people over the issue of house. But we must accept the fact that with RM90,000, we cannot built a comfortable house," he told reporters after officiating a ground-breaking ceremony for Dewan Semai Bakti in Felda Keratong 10, Rompin, today; In 2013, Felda allocated RM1.4 billion to build 20,000 units of affordable homes nationwide in five years to enable the second generations to own homes. Meanwhile, Pahang PAS deputy commissioner Nasrudin Hassan said in Muadzam Shah that the second-generation Felda houses would be among the main issues for the party campaign machinery at Rompin by-election. "The issue of houses for the second generation is still pending. The voters in the area are disillusioned as after so long the houses which were promised to them are not forthcoming," he said. As Rompin had 14 Felda land schemes, the issue of second generation Felda houses, was close to the hearts of voters in the areas, he said. - See more at: http://www.themalaysianinsider.com/malaysia/article/felda-has-never-cheated-settlers-says-chairman-bernama#sthash.WH3loMxQ.dpuf

Felda Settlers Urged To Reject Opposition's Accusations During Rompin By-Election; ROMPIN, April 20 (Bernama) -- Felda settlers have been advised to not easily fall prey to the opposition's slander and accusations on the government to 'fish' for votes during the Rompin Parliamentary by-election on May 5; Felda chairman Tan Sri Isa Samad said the opposition's plan was to divide settlers by harping issues with intention to incite hatred toward the government. "They have been doing this in every by-election and general election, but thank god many of the Felda settlers do not believe their accusation," he told reporters after the groundbreaking of the Felda Keratong 9 Semai Bakti Hall, here, today. The 3,500-square meter project, worth RM950,000, will accommodate facilities for 2,000 settlers to organise various activities. Isa said Felda was liaising with the local community and leaders to repel the opposition's accusations by providing exact information about Goods and Services Tax (GST) and 1Malaysia Development Berhad (1MDB) related-issues. "Continuous information programmes will be held to Felda settlers in the country so that they will not fall prey to the opposition's accusations," he said. The Rompin Parliamentary seat fell vacant after incumbent Tan Sri Dr Jamaluddin Jarjis was killed in a helicopter crash at Semenyih, Selangor on April 4.
The Election Commission has set April 22 as nomination day and May 5 as polling day. -- BERNAMA; http://www.bernama.com.my/bernama/v8/ge/newsgeneral.php?id=1127974

Booklets, officers to explain on GST for Rompin folks  By T.N.Alagesh and Nor Ain Mohamed Radhi - 23 April 2015 @ 11:13 PM; ROMPIN: To ensure voters in Rompin have accurate information about the Goods and Services Tax (GST), the Domestic Trade, Cooperatives and Consumerism Ministry has distributed booklets on the newly-implemented tax system to 38 voting district centre (PDM) in the constituency. "We hope voters in Rompin will not be easily duped by the misleading information spread by the opposition on GST as the tax collected by the government will be used for the benefit of the people," he said. Meanwhile, Felda chairman Tan Sri Mohd Isa Samad reminded settlers not to be easily duped by misleading information about Felda Global Ventures Holding during election campaign.  "The (opposition) are only recycling issues which were previously highlighted during the 13th general election and now since it is a by election, they are back to lure voters. They are aware that Rompin has about 17 Felda settlements and the settlers could decide the outcome on polling day," he said. http://www.nst.com.my/node/81535





 

Smallholders in Nigeria

In reviewing the situation of oil palm smallholders in Nigeria, Ayodele et al. (2015, p.1-2) writes of a low production (under-invested) palm oil sector dominated by production by 4 million smallholders( largely from wild groves, for domestic consumption):

  • Nigeria is the world’s third-largest palm oil producer. It has the world’s largest percentage of smallholder oil palm farmers – around 90 per cent. Smallholder oil palm farmers typically earn higher incomes from oil palm than from other crops. Smallholders generally operate on wild groves. While these groves have relatively poor yields they require lower agricultural inputs. The smallholder sector supplies local markets generally aimed at domestic use. The value chain for smallholders extends to locally based traders and traditional or small-scale processors.
  • Larger plantations, while relatively few, are not undergoing the level of expansion seen in other countries in Africa or across Southeast Asia. Subsequently the problems that have been associated with palm oil in high-growth countries are considerably smaller in Nigeria.
  • In many ways this situation in relation to palm oil could be regarded as positive. Palm oil should, in theory, provide a significant boon to local livelihoods through a well-established value chain that has existed since the 1960s.
  • The potential for oil palm as a crop for export and local use is, however, significant. The crop provides exceptional returns to land and labour for smallholders, of which there are around 4 million. The introduction of large-scale investments would bring significant expertise, infrastructure improvements and extension services that would improve the sector significantly.
  • Nigeria in this regard is unique compared with other palm oil producing nations in the region; it is not a matter of the establishment of a new industry – the industry is established, its plantation footprint is significant (in excess of 2.5 million ha) and many people already understand its benefits. It is more a matter of how the existing industry can be improved – and therefore generate better socio-economic outcomes.
  • The success of oil palm as a crop is affected by poor and ineffective land tenure laws (legal land tenure often clashes with communal land tenure, creating social FPIC risks), poorly implemented government policy, high costs (poor transport infrastructure and inefficient traditional processing techniques), and lack of investment. They note that “Environmental thresholds on oil palm will not necessarily result in environmental protection. They may simply prompt development of another crop. Oil palm is not a key driver of deforestation in Nigeria; this is because the area for oil palm – although suffering low productivity – is large.”
  • In the event that HCS did deter investment, then, what would be the impact? In other words, the trade-off would be the choice between an industry that remains stagnant and dominated by independent smallholders that supply the domestic market or significant productivity gains for the 4 million smallholders in Nigeria.


p. 31:
The results for incomes per hectare in ex-post studies are broadly consistent. They place the incomes from average sized farms in Nigeria (1.5ha) at the level of average incomes for the country as a whole and higher than rural incomes generally. This would indicate two things:  Independent oil palm smallholder farming provides a means to poverty alleviation in Nigeria; Supported smallholder farming – and by extension larger estate developments with an out-grower component – have significant potential to alleviate poverty in Nigeria.

p. 33
The relationship between smallholders and large estates in Nigeria is similar to that found in other parts of the world, although the relationship does not have the strong institutional ties that have been forged in a country like Malaysia. Presco Plc is a Nigerian company, listed on the Nigerian stock exchange. It is the subsidiary of Siat, a Belgian company with interests primarily in palm oil and rubber, with operations in different parts of Africa. Presco has more than 15,000ha of plantations in Nigeria… Presco, when establishing its outgrower scheme in Ologobo, assessed the role that outgrowers could play in conservation of remaining forest areas. However, the study did note the complexities around expecting local communities – whose primary interest in the plantation is economic – to undertake such a role. Subsequently the company’s focus in community development has been on education, roads, water and electricity…. PZ Wilmar has established oil palm plantations and palm oil processing in Nigeria much more recently and is seeking to develop more than 70,000ha of plantations. As a consequence its relationships with Nigeria’s extensive smallholder and informal oil palm sectors are considerably less developed. The company is currently in the process of replanting old stock, which is providing considerable levels of employment for local farmers and additionally providing training for these farmers.

Ayodele, Thompson, Olusegun Sotola, Olajide Damilola, Khalil Hegarty and Ilemobola Obe (2015), Nigeria: A smallholder case study, Consulting Study No. 13 for The High Carbon Stock Science Study 2015 (December 2015), http://www.simedarbyplantation.com/sustainability/high-carbon-stock, accessed 10 Feb. 2017.

Carbon prices: California’s cap-and-trade program, Disney carbon credits deal in Cambodia. $8 and $7.

6 Jan 2017: California’s cap-and-trade program, Disney buys up carbon credits in Mondulkiri. $8 and $7.


Editor's note: California Yurok tribe indicated at c.$8. Disney-Mondulkiri Cambodia deal is for 360,000 tons CO2E, so US$7.22s (read here: http://en.freshnewsasia.com/index.php/1600-cambodia-sells-first-carbon-credit-to-u-s-disney, correction - not 14 million tons).

Carbon cutters on edge, hoping California’s cap-and-trade program survives - By Special to The Enterprise December 29, 2016 By Julie Cart -- In 2014 the state’s Air Resources Board awarded the Yurok the first certified forestry carbon offset credits in California, after they placed more than 8,000 acres of Douglas fir and hardwood into the state’s carbon bank and pledged to leave the mature forest to absorb and sequester carbon for 100 years.The tribe’s 836,619 offset credits could earn the Yurok as much as $7 million annually..... But not all of agriculture has embraced the program. Last year the state added a new offset: cultivating rice to reduce methane. It has yet to entice any California farmers to register projects. The simple reason? Money.While the Conservation Fund’s forest projects bring in $3 million a year — with administrative costs of about $150,000 — the carbon offset reward isn’t enough to justify the upfront costs for rice farmers. “It’s not a highly attractive option right now, with the price of carbon where it is,” said Paul Buttner, environmental affairs manager for the California Rice Commission. It costs about $1,200 an acre in California to produce rice and sell it, Buttner said. The industry’s calculation is that by the time farmers fill out the paperwork, enroll in the program, then institute the changes required, it might reduce emissions by about half a ton per acre, Buttner said. “If you do the math, that’s $5 an acre. Unless the price of carbon doubles or triples over the current price, I can’t imagine them getting highly motivated to take part in the program.”... http://www.davisenterprise.com/local-news/carbon-cutters-on-edge-hoping-californias-cap-and-trade-program-survives/

Disney buys up carbon credits in Mondulkiri Mon, 25 July 2016 by Phak Seangly and Kali Kotoski
The Walt Disney Company has purchased $2.6 million in carbon credits in the forests of Mondulkuri province – marking the largest carbon credit sale to date in Cambodia and breathing life into a carbon-trading program many had written off as all but dead.... In collaboration with the Cambodian government and brokered by the Wildlife Conservation Society (WCS), the US-based media giant will purchase 360,000 tonnes worth of carbon emissions in Keo Seima Wildlife Sanctuary in a bid to offset its global carbon footprint....http://www.phnompenhpost.com/national/disney-buys-carbon-credits-mondulkiri

Trump - Reading about the Trump Trade Doctrine, US biofuel risk, 100 days plan video, Malaysia ringgit more exposed, Europe food industry reactions

5 Jan 2017: Reading about the Trump Trade Doctrine in Talking Trade blog by Dr Deborah Elms


How Much Change Is Coming From Washington On Trade? January 5, 2017 -- While we don’t want to spend too much time at Talking Trade watching unfolding events in Washington DC, the changes happening now are likely to significantly affect trade across Asia.  This is not a typical American administration. President-elect Donald Trump has now named enough of his staff to show that his comments on the campaign trail and his various tweets and actions since his election were not simply pandering to the electorate.  He intends to handle trade policy quite differently.... http://www.asiantradecentre.org/talkingtrade//how-much-change-is-coming-from-washington-on-trade

Reprint: Trump's Trade Policy Revisited December 2, 2016 -- The Trump Trade Doctrine requires renegotiating all bad trade deals to ensure that all agreements increase the GDP growth rate, decrease the trade deficit, and strengthen the US manufacturing base. ...The “obvious Trump negotiating strength” will rebalance trade with the six countries that hold half the US deficit: Canada, China, Germany, Japan, Mexico and South Korea....The Koreans will just recognize that the current KORUS arrangement is not working and will “simply seek a far more equitable deal.” Germany and Japan will negotiate mostly for US energy (with the added bonus of creating additional US jobs).... China, Navarro and Ross admit, is a tougher nut to crack.  But soybeans, petroleum, motorcycles and raisins, plus a few other goodies should surely be sufficient as carrots when matched with “the strength and resoluteness of Trump.” ...And thus, in less than two dozen pages, the Trump economic plan shows exactly how America’s real GDP growth rate will be increased with millions of new jobs created and generate trillions of new dollars in additional income and tax revenues.... Getting from here to there may, as it happens, fundamentally overturn decades of US trade policy as practiced by Republican and Democratic administrations.  But the results—Trump would surely say—will be SOOO worth it.... ***This Talking Trade blog post was written by Dr. Deborah Elms, Executive Director, Asian Trade Centre, Singapore***

http://www.asiantradecentre.org/talkingtrade//reprint-trumps-trade-policy-revisited


12 November 2016: US biofuel risk, Donald Trump 100 days plan video, Malaysia ringgit more exposed, Europe food industry reactions



Editor's note: US support for imported biofuels is obviously in some doubt - for blenders credit to shift to producer credit. RIN's immediately dropped.


Donald Trump outlines policy plan for first 100 days By Tom LoBianco, CNN November 22, 2016 http://edition.cnn.com/2016/11/21/politics/donald-trump-outlines-policy-plan-for-first-100-days/index.html

Donald Trump's first 100 days: A breakdown of his plan By James Masters, CNN November 22, 2016  http://edition.cnn.com/2016/11/22/politics/trump-first-100-days-plan/index.html

Malaysia caught in currency ripples - Bloomberg, By: Christopher Langner (Nov 21) -- A drop in hedging and refinancing activities would be bad news for banks. Ironically, Malaysian financial institutions could be the worst affected. They're the biggest issuers of short-term dollar debt, with more than US$3.5 billion ($5 billion) of bonds due in less than a year outstanding.... Malaysian banks are the most dependent on short-term markets for dollar funding in Southeast Asia. 

http://smr.theedgemarkets.com/article/malaysia-caught-currency-ripples

Your thoughts on Trump's triumph: From 'authoritarian tactics' to 'a thriving business environment'
By Niamh Michail+, 15-Nov-2016
Brash, billionaire businessman Donald Trump is America's president elect. While some FoodNavigator readers foresee "authoritarian tactics" from "an unpredictable man" others are looking forward to "a thriving business environment" for the US and Europe.
http://www.foodnavigator.com/Trends/Food-prices/Your-thoughts-on-Trump-s-triumph-From-authoritarian-tactics-to-a-thriving-business-environment


17 November: Foreign banks shaken by Malaysia's move to halt currency slide, Malaysia's Running Out of Trump Cards



Foreign banks shaken by Malaysia's move to halt currency slide By Saikat Chatterjee and Praveen Menon | HONG KONG/KUALA LUMPUR -- "There's a massive back and forth going on between banks and Bank Negara Malaysia (BNM) now," said a banker at a foreign bank in Malaysia that deals in foreign currency transactions. "This is a type of indirect capital control ... I see a flood of people exiting Malaysia." ... "We have been told that we cannot repatriate our money and our investments stay in Malaysia if we don't sign," he said. The bankers asked for anonymity, due to the sensitivity of the subject. Foreign holdings account for 40% of the total outstanding bond market in Malaysia, one of the largest foreign ownerships in Asia.... Foreign investors pulled 8.4 billion ringgit out of government bonds in September, the largest outflow since August last year, when Malaysia's markets tumbled on a political crisis swirling around Prime Minister Najib Razak and corruption allegations involving indebted state fund 1Malaysia Development Berhad (1MDB).... In October, however, there were inflows of 2.39 billion ringgit into government bonds, and foreign reserves rose to US$97.8 billion by the end of the month, up from US$97.7 billion at the end of September. The reserves were enough to finance 8.4 months of retained imports.... http://www.reuters.com/article/us-malaysia-fx-controls-idUSKBN13C0M5


Malaysia's Running Out of Trump Cards By Andy Mukherjee -- Amid a deepening emerging-market rout, three of Donald Trump's seven promises to American workers are making Asia particularly nervous.... Although no Asian nation would relish the prospect of an all-out trade war, Malaysian investors are perhaps most at risk...And while it's a TPP member, the accord's demise is the least of Kuala Lumpur's worries. It might even be a short-term boon. After all, the Southeast Asian country is an energy and palm-oil exporter. It's not terribly competitive at much else.... But TPP being dead doesn't help either. For one, dollars are in short supply in the banking system, and therefore a flight to safety among investors jittery about a Trump presidency makes Malaysia a particularly vulnerable emerging market....If fears about a Trump presidency keep exchange rates volatile, and the $5.5 billion of foreign inflows into Malaysian bond markets turn into outflows, hopes consumers will provide a floor to the economy may quickly disappear....
https://www.bloomberg.com/gadfly/articles/2016-11-13/malaysia-s-running-out-of-trump-cards

15 November: Global growth to suffer? Ringgit issues, end of TPPA, Trump's first interview

Goldman Just Killed The "Reflation Euphoria" - Concludes Global Growth Will Suffer Under Trump No Matter What by Tyler Durden Nov 14, 2016 
What it confirms to us is that the scenario we predicted on November 9, moments after Trump was declared winner, is starting to play out namely that the true state of the global economy - which had been propped up for years with trillions in liquidity - is about to be revealed, and a major global recession, if not depression is in store.
http://www.zerohedge.com/news/2016-11-14/goldman-just-killed-trump-euphoria-concludes-global-growth-will-suffer-under-trump-n

 Malaysia's business news front page today

CIMB Research: Ringgit could touch 4.80 against greenback within next six months  November 14, 2016  http://www.theedgemarkets.com/my/article/cimb-research-ringgit-could-touch-480-against-greenback-within-next-six-months-0?

On Malaysia Ringgit onshore-offshore disparity problem last week, please see excerpt in The Edge Malaysia here. The background from bank treasury experts is this: the non-deliverable forward (NDF) market for Ringgit has always been around since 1998 when Bank Negara Malaysia outlawed offshore Ringgit trading.
I got item below via social media, and it is here http://www.bnm.gov.my/index.php?ch=en_press&pg=en_press&ac=4295&lang=en  (please read BNM website version). PRESS RELEASES by BNM - Prohibiting Facilitation of NDF Related Transactions Ref No : 11/16/09 13 Nov 2016: Bank Negara Malaysia would like to state that there is no change in the Foreign Exchange Administration (FEA) rules and there is no introduction of any new measures. Ringgit remains as a non-internationalised currency, thus any offshore trading of ringgit such as ringgit non-deliverable forward (NDF) is not recognized..... 

A friend wrote: NDFs are traded in Ringgit and Monetary Authority of Singapore have instructed banks to review their processes because of NDF spot rates manipulation by AAAA and BBBB, including Ringgit and Rupiah.

Another friend checked with AAAA: This is a Jan 2013 case whereby 14 banks were involved, AAAA being one of them. We paid the fine, sacked the traders involved and so did some other banks.

US 2016 results reflect trends seen 2014 and before?
A political analyst I was in touch with pointed out that the media has not been reporting properly. The USA 2014 mid-term election already showing Republican gains. Look at this (image on left and link below)? Plus the "deep state" signs like FBI on the Hillary's email issues.

Trump's first interview as president-elect
As CBS' Lesley Stahl summarized the interview, "what we discovered in Mr. Trump’s first television interview as president-elect, was that some of his signature issues at the heart of his campaign were not meant to be taken literally, but as opening bids for negotiation.
Lesley Stahl: You don’t like it, but your own transition team, it’s filled with lobbyists.
Donald Trump: That’s the only people you have down there.
Lesley Stahl: You have lobbyists from Verizon, you have lobbyists from the oil gas industry, you have food lobby....
Donald Trump: I’m saying that they know the system right now, but we’re going to phase that out. You have to phase it out.

On TPPA
Senate Majority Leader Mitch McConnell and House Speaker Paul Ryan said they would not take up the TPP before Mr Trump's inauguration. The President-elect made his opposition to the TPP a centrepiece of his campaign, saying it would send more jobs overseas. http://www.straitstimes.com/world/united-states/obama-administration-suspends-vote-effort-for-tpp-deal

Surprised to read Japan push through TPPA earlier. The advise from trade experts has been to wait for USA legislators to move first. See news from 4 Nov 2016, Japan Lawmakers Vote to Ratify TPP - Bill was pushed through a special committee after scuffles and shoving on the committee floor http://www.wsj.com/articles/japan-lawmakers-vote-to-ratify-tpp-1478256900 

On Michael Moore's analysis and Trumpland
It is amazing how quickly Moore's rational assessment of the election on October 24th has completely devolved into madness as he is blatantly and overtly calling for mass violence. Moore, like other democrats, would be well served to take a step back and consider the fact that the outcome of this election is the direct result of a corrupt DNC rigging the system to nominate a flawed candidate with numerous outstanding criminal investigations....the blame game should end there.
Michael Moore: Trump presidency a 'dangerous' risk - UpFront, Al Jazeera English https://www.youtube.com/watch?v=b_w-iF-cgaQ
Michael Moore: Trump Voters Aren't Racists, Many Voted for Barack Hussein Obama https://www.youtube.com/watch?v=p2ifVTGJDZI
Michael Moore Explains Why TRUMP Will Win 24 Oct 2016 https://www.youtube.com/watch?v=YKeYbEOSqYc

11 November - reflecting on market uncertainty

Emerging market forex drops, USD and US equities gain. Big tax incentives shift money back to US. Fisca lrather than monetary boost to come? Sounds good for USA..Feels like TPPA and vast recent volume of China SOE driven MOUs in the region marks some sort of apex! Social media in KL full of chatter BNM forex intervention. CPO denominated in MYR is heading up as USD strengthens. Offshore USDMYR said be 4.50. I inadvertently used that figure in my spreadsheet last week in forecast view. No inkling of such volatility. 

Latest:11/11 BNM governor says Malaysia will not peg ringgit despite recent volatility currency has been facing due to external environment/STARBIZ (please verify)


9 November - Trump victory impact on palm oil


First of all to acknowledge that my husband was correct. He has held the opinion that Trump would win since early this year; his take on Malaysia perspective: https://m.facebook.com/story.php?story_fbid=1189341224469599&id=217285405008524. Even US political analysts and the Economist (Donald Trump triggers political earthquake by EIU, http://country.eiu.com/article.aspx?articleid=684795252) had great hope for Hillary until the end. I feel media is no longer reflecting public opinion but trying to create or manage it.

From reader feedback out here: A general agreement on international (Brexit-type) de-globalisation movement?
Read a comment from Henri Bardon: What market pullback? Businessman that has never held political office and wants to reduce tax and regulations.... And from a hard-nosed KL-based investor: Trump is pro-business, noting that TA Enterprise of Malaysia is a Trump business partner.

For palm oil, notable that Trump may be pro-business (lower tax and regulations) but domestic (and Americas region?) trade, business and US jobs oriented:


  • Producer-country: Boost existing domestic sentiments that may further agitate for better deals / protection for smallholders. On sustainability, suggesting more rapid reform at elite-oriented programmes needed i.e. further RSPO resourcing reform. Comes in wake of pressured disbandment of IPOP in late 2015 despite record haze on cartel fear. Smallholder outcomes worth tracking and remain to be seen. But TPPA-demanded Malaysia sustainability upgrades including on ILO labour standards on the back burner?
  • Destination market issues: Less support for imports of biofuels and other products, sustainable or not. Increased domestic buy and domestic oils focus (already also seen for China). Foodnavigator (below) writes: Dr Marion Nestle to suggest that nutrition, food safety and sustainability may not be high up the policy agenda.
To repeat my early reaction while sitting at RSPO RT14: What are implications of Brexit-Trump victories for sustainability? Review your political-economic structure and mitigate negative economics for small suppliers.  https://m.facebook.com/story.php?story_fbid=1273430179375792&id=116785031706985   


Some articles and links:

Plantation Sector: Impact of a Trump presidency by Ambank 10 Nov 2016 -- These are the potential effects that we can think of:-
1. No TPPA - President Trump does not support TPPA. USA tax on refined palm oil from Malaysia at about 9.6%... no import duty on crude palm oil.
2. Drop in demand for biodiesel imports?..as renewable energy may not be a priority for his administration (see OGJ below)
3. Indirect impact from weaker RM vs. USD
4. Disruptions in global trade to affect commodities demand? China and currency manipulators.
....It remains to be seen if Trump will carry out his proposals when he starts his job as the new President of USA.

US election results improve prospects for federal policy reforms - Oil & Gas Journal -- The US oil and gas industry’s prospects for reforming federal policies, from arbitrary quotas under the Renewable Fuel Standard to reduced leasing opportunities on the US Outer Continental Shelf, brightened as Donald J. Trump beat Hillary Clinton for the presidency and Republicans kept control of both houses of Congress in the 2016 elections....
http://www.ogj.com/articles/2016/11/us-election-results-improve-prospects-for-federal-policy-reforms.html

What will a Trump presidency mean for the US food & beverage industry?.. Thus far Trump has not talked much about food policy or agriculture beyond discussing taking SNAP away from USDA and the farm bill, describing the FDA as the ‘food police’ (in a fact sheet later removed from his website), calling for an immediate halt to new federal regulations, and talking of significantly curtailing the powers of the EPA - prompting food policy expert Dr Marion Nestle to suggest that nutrition, food safety and sustainability may not be high up the policy agenda under the Trump administration..... http://mobile.foodnavigator-usa.com/Suppliers2/What-will-a-Trump-presidency-mean-for-the-US-food-beverage-industry?


At RSPO RT14 Bangkok - big news Marrakech Declaration by Africa palm producers. GA resolution results.


News from RSPO



RSPO RT14 CONFERENCE EMPHASISES EQUALITY, HUMAN RIGHTS AND SMALLHOLDER INCLUSIVITY News, 29 November 2016 http://www.rspo.org/news-and-events/news/rspo-rt14-conference-emphasises-equality-human-rights-and-smallholder-inclusivity

13TH GENERAL ASSEMBLY SUMMARY REPORT Announcements, 30 November 2016 http://www.rspo.org/news-and-events/announcements/13th-general-assembly-summary-report

IMPROVED RSPO IT SYSTEM PALMTRACE WILL FEATURE RSPO CREDITS TRADE News, 30 November 2016
http://www.rspo.org/news-and-events/news/improved-rspo-it-system-palmtrace-will-feature-rspo-credits-trade

SUSPENSION AND TERMINATION DUE TO NON-SUBMISSION OF ACOP REPORTS 2015 News, 21 November 2016
http://www.rspo.org/news-and-events/news/suspension-and-termination-due-to-nonsubmission-of-acop-reports-2015

RSPO STATEMENT ON DISCLOSURE OF RSPO MEMBERS’ CONCESSION MAPS News, 08 November 2016

http://www.rspo.org/news-and-events/news/rspo-statement-on-disclosure-of-rspo-members-concession-maps



Day 3 (10 Nov): 9 Africa producer nations to pledge no net deforestation. GA policy resolutions results.


RSPO GA

RSPO GA key policy resolution tracking with results: https://m.facebook.com/story.php?story_fbid=1274341349284675&id=116785031706985

I just had glance at the GA resolutions.They rightly focus on streamlining for cost-efficient smallholder certification:
- On downstream  and NGO commensurate efforts e.g. "no palm oil" by RSPO CGM a bug bear. Indonesia Grower Caucus (IGC)
- Fixed period for key documents. IGC.
- Compensation procedure. To publish cases and action for transparency. Current is voluntary declaration without public disclosure.
- Whistleblowing mechanism.
- NPP for indep smallholders. Solidaridad and SRT Jambi and many plantations.
- Exempt NPP for independent and scheme smallholders. IGC.
- Group certification system suspension. As smallholders face complicated process for GHG and HCV Comp. IGC.


News updates


Day 3 (10 Nov) tracking

Regional Perspective session. Shows major efforts include governments to shift to private-public efforts. Amsterdam Declaration is for RSPO certified or equivalent but palm oil in food use has been dropping. Upcoming 9 Africa producer nations signing of Marrakech Declaration will promote RSPO certification amidst smallholder focus; crucially pledges zero net deforestation. Sees RSPO as insufficient coverage and need to raise the floor. https://m.facebook.com/story.php?story_fbid=1274181565967320&id=116785031706985

Have smallholder seen improvements session. Struggling for metrics from Amanah case and focus more on issues and policy by the speakers. There is floor feedback on capacity shortcomings. Oxfam (EB member) says need more than just the "certification tool" and draft snallholder strategy paper received by EB last week is to stay ambitious but keep it simple.   https://m.facebook.com/story.php?story_fbid=1274226282629515&id=116785031706985

Closing address talks about global inequality and that no one should be left behind. Points to working with local governments e.g.  Sabah where carbon stocks are found to be 40% higher than in the Amazon (per ha?), South Sumatra and Kalimantan projects. Ecuador commitment just came. Marrakesh Declaration for sustainable development is big. Needs to be on an equitable basis. RSPO has a role as a convenor. Simple step of exclusion must be minimised. RSPO to work closely with Singapore to pull this region along.


Day 2 (9 Nov) tracking

What are implications of Brexit-Trump victories for sustainability? Review your political-economic structure and mitigate negative economics for small suppliers.  https://m.facebook.com/story.php?story_fbid=1273430179375792&id=116785031706985   




RSPO Updates session: 

Monitoring impacts session: 
Buzzword/catch phrase abundant e.g. theory of change. Hmmmm.

Assurance session closes Day 2: https://m.facebook.com/story.php?story_fbid=1273543816031095&id=116785031706985 

RSPO is highlighting twitter to follow events, but it seems to have lot of anti-RSPO (e.g. licence to kill) comments too: https://mobile.twitter.com/search/live?q=%23RSPO  


Day 1 (8 Nov) reflections

As I look at news on the US elections rolling out it is interesting to reflect on the so-called elite vs non-elite concerns embedded in this and having more prominence in policy making. These are apparently also high among the concerns of some senior RSPO observers. Recall that IPOP was disbanded by Indonesia on fears of outcomes for smallholders from  "economic cartel" behaviour risks ie. exclusion and added price discounting. RSPO watchers are also concerned about a surprise Brexit-type risk for this certification club (that covers the best or top 20% of production)  well organised by regional/international interests but that has struggled to include smallholders on a large-scale. Could national administrations try to intervene in some way? In KL, there is market talk that high politics also has its eyes peeled.

I have covered palm sustainability since 2009, highlighting the need for economic trickle down. It is heartening to see a rise in RSPO smallholders within the last two years; as the big plantations finished covering their own processing and estates first. Our checks on smallholders is that independent smallholders covered may be former scheme projects, suggesting that an inclusionary approach is hard to come.

A positive will be the jurisdictional RSPO certification move. But commercial players see this as some way off as the lead Sabah programme is said not to have a detailed plan yet. The RSPO consultant presenting on this yesterday said as much. That the Sabah administration is mooting legislative change to make RSPO a legal requirement underlines the limits of voluntary buy in.

Corporates were cheering the HCS Convergence. But I think questions remain on the hard vegetation threshold (what is the equivalent carbon ceiling in each region) and the important issue of suquencing the social aspect. Greenpeace represented the steering committee and mentioned a timeframe of "months if not years" on social and FPIC. We would need to read the details of this appatently work-in-progress policy. On a related issue, RSPO Next's support has to be determined.

At the carbon emissions cluster, it was good to see two years worth of carbon data. From 1 Jan 2017, public disclosure starts. This comes amidst the coming into force of the Paris Climate Agreement. It is voluntary and the reported drop in carbon prices is worrying. Nevertheless, experts are looking out for carbon trading / taxes in the future. Experts say they have yet to consider these in the RSPO context but it likely has to considered. The ultimate question is this: where do premiums go?

I also attended the cluster on Thai palm sustainability. Interesting point discussed afterward is the lack of reported data on land use change to palm. Is it well under 10% forest conversion as Thai observers tell me? Thai palm should say this out loud.

The finance cluster focussed on rising demands by international financiers and laggard regional banks and FMCG. Other clusters were on FFB traceability (legality an issue in Indonesia and Thailand) biodiversity and PKO. The premium and availability issues are top of mind for its buyers. Other issues are the politics of the RSPO complaints system.

The big silent problem is the HCV Complaints Liability. I am told by commercials that this and other costs are pricing out independent smallholders from RSPO. It is also likely impacting potential corporate M&A at a time when sector consilidation is expected. I covered this Compensation at the policy development stage at some detail. I was surprised by the then sanguine views and lack of a legal reading.

At RSPO RT14 in Bangkok, there are likely 800 participants. Key stakeholder representatives are familiar friendly faces.  Very glad to be here in 2016 for palm sustainability that I first started to attend seven years ago.
#RSPO #RT14