Malaysia’s Federal Land Development Authority to Issue MYR 9.9 Billion Sukuk to Finance Restructuring Plans

The Malaysian Cabinet has granted approval for state-owned Federal Land Development Authority (FELDA) to issue government-guaranteed Sukuk amounting to MYR 9.9 billion (USD 2.38 billion) to finance restructuring plans, according to local media reports.

According to Datuk Seri Mustapa Mohamed, Minister in the Prime Minister’s Department (Economy), FELDA’s financial position is expected to recover by the start of 2023 through the debt restructuring.

Mustapa noted that the Malaysian Cabinet had received several recommendations based on findings from a special task force set to address FELDA’s financial issues, including restructuring of debt owed to financial instituti...