1.

INTRODUCTION
Federal
Land
Consolidation
and
Rehabilitation
Authority (FELCRA) was established in 1966. Its objective is to
develop rural sector by helping its community to participate in
national economic activities, thus improving their standard of living.
Since
1st of September 1997, FELCRA is known as FELCRA
Berhad due to its corporatization. It is no longer a Statutory Body
but has becomes a fully Government owned company. With the
change of its corporate entity, FELCRA is now able to explore new
business opportunities, in line with national development aspiration.
Armed with plantation management and core activities
skills, FELCRA Berhad is now diversifying its activities into
industrial and service sector as well as other growing business
areas.
Ultimately FELCRA Berhad aspires to be a successful conglomerate
while creating a dynamic, attractive and profitable rural sector. This
is in line with its operational strategy which balances profit oriented
programme with social obligation.

2. VISION & MISSION

Corporate Vision
i.

To remain as a leading plantation house and to grow as a

successful conglomerate.

Corporate Mission
i.

To uphold the " The No. 1 Grateful Participant " philosophy and
to have growth with equity together with them; as well as to
manage, to safeguard and to hold the interest of the target
group namely the participants' community.

ii.

To implement Corporate Social Responsibility (CSR) through

the development of plantations and related activities more
efficiently
and
profitably.

iii.

To implement profitable diversification programmes, while

concurrently
planning
and
executing
export-oriented
programmes and aiming to achieve a successful conglomerate
identity.

3. CORPORATE OBJECTIVES

i.

To provide a high rate of return on farms developed.

ii.

To improve the quality of life of the target groups, namely the

participants' community and the staff.

iii.

To improve productivity levels through management efficiency

and cutting-edge technology.

iv.

To improve value-added economy of the Company.

4. FELCRA BERHAD CLIENTS CHARTER

i.

"Our commitment is to provide excellent, efficient and

effective services to achieve maximum return on investments
made for the benefit of the target groups in tandem with the
vision of FELCRA."

ii.

"We strive to have the FELCRA community to be dynamic,

independent, competitive, grateful and visionary as well as
developing our human resource fairly and equally without
prejudice."

iii.

"To provide basic amenities to all development centres

efficiently, accurately and fairly within the boundary of the
planned development programme implementation.

iv.

"All financial transactions will be attended to promptly,

accurately and quickly by making the payments within 3 days
after the confirmation is received by the Payment Unit and
ready to resolve any claims from the customers."

v.

"In compliance with the requirements of the organisation, the

Ministry and the Nation in improving quality and productivity
towards achieving Vision 2020."

5. CORPORATE FUNCTIONS

i.

Rehabilitate and Consolidate Land by Approval

ii.

Request by State Authority

iii.

Approval by Land Owner

6. STRATEGY
i.

FELCRA Berhad operates based on a balanced

approach between the Corporate Social Responsibility (CSR)
programme and Business Activities (profit).

7. FELCRA BERHAD COMMITMENT

1. Will continue to act as executing agency for the federal

government, and state government to realize rural community
development
programmes.
2. We want FELCRA participants to collaborate and unite together to
bring FELCRA Berhad to an international level.
3. Six (6) Stabilization Key Factor :
Encourage land restoration and consolidation projects (P & P)
including replanting as the company's main function.
Increase the role of social obligation, participants'
development and institutions to instil within them a sense of
pride
as
the
target
group.
Strengthen the economic fundamentals and core business.
Strengthen company's cash flow in development as a package
through meaningful involvement by subsidiaries.
Increase motivation of staff from all levels towards efficiency
and productivity by introducing "Key Performance Indicator"
(KPI).

 Prioritizing cost efficiency through division mergers and

mobility of senior officers or current establishments.

8. ORGANIZATION CHART

FELCRA Berhad has the strength of 3,000 employees all over

Malaysia; 700 staffs at headquarters and the rest are located at
regional and projects. There are 8 regional offices and 2,000
projects.
FELCRA Berhads regional office are as follows:
a) Northern Regional Office - Perlis, Kedah and Penang
b) Perak Regional Office
c) Central Regional Office - Malacca, Negeri Sembilan and
Selangor
d) Johor Regional Office
e) Pahang Regional Office
f) Eastern Regional Office Terengganu and Kelantan
g) Sabah Regional Office
h) Sarawak Regional Office

FELCRA Berhads organization structure are mixed of mechanistic

and organic structure. Departments in FELCRA headquarters are
mechanistic which firmly follows rules and procedures with clear

authority. It means that every important decision making that affect

the organizations policy must pass through 2 commitees which are:
a) High Management Committee
b) Board of Directors
The management of FELCRA Berhad at regional office and projects
are more to organic whereby all decisions and communications is
looser, free flowing and adaptive. The setup of this structure is to
ensure that the productivity and the outcome is fast and more
efficient. The short-term plantation such as paddy needs speedy
decision making for example when it faces outbreak of disease.

FELCRA Berhads Organization Chart

9. FELCRA BERHAD BUSINESS ACTIVITIES

Estate Development & Consolidation and Rehabilitation
FELCRA Berhad has developed 1,593 projects owned by the rural
population amounting to 226,162.49 hecters of land.

FELCRA BERHAD DEVELOPED ESTATE AREAS BASED ON STATES

NO.

STATE

NO. OF
ESTATES

HECTARAGE
(HA)

1.

PERLIS

11

2,437.58

2.

KEDAH

129

10,839.08

3.

PULAU PINANG

18

502.75

4.

PERAK

225

31,662.47

SEBERANG PERAK

20

12,107.13

5.

SELANGOR

43

5,641.49

6.

NEGERI SEMBILAN

184

14,547.24

7.

MELAKA

63

3,357.88

8.

JOHOR

182

32,252.06

9.

PAHANG

302

47,664.09

10.

TERENGGANU

192

23,390.46

11.

KELANTAN

89

10,466.11

12.

SARAWAK

96

22,139.74

13.

SABAH

39

9,154.41

GRAND TOTAL

1,593

226,162.49

Percentage Of Estate Based On Crops

NO.

CROPS

PERCENTAG
E

1.

PALM OIL

65.00

2.

RUBBER

32.00

3.

OTHERS

3.00

The objective of the Idle Land Restoration and Consolidation is to

restore rural uncultivated land and manage commercial estates at
an economical width. Farms owned by rural folks are developed
under this program where uncultivated lots are consolidated and
restored under a single management through a stock system. The
members stocks are evaluated based on the width of the land
owned by the project member.

In the 10th Malaysian Plan, FELCRA Berhad has been given

provisions up to RM328 million to restore idle land for target rural
areas with a width of 50,000 hectares for five years ( 2011 2015 )
or 10, 000 hectares a year.

TARGET IDLE LAND AREA WHICH WILL BE DEVELOPED BY FELCRA

BERHAD FROM THE YEAR 2011 2015

10.

NO.

STATE

HECTARAGE(HA)

1.

JOHOR

4,923

2.

KEDAH

1,901

3.

KELANTAN

400

4.

N.SEMBILAN

1,010

5.

PAHANG

5,983

6.

PERAK

3,947

7.

TERENGGANU

6,161

8.

SABAH

9,422

9.

SARAWAK

16,253

TOTAL

50,000

FELCRA SUBSIDIARIES
Subsidiaries Activities
The main purpose of subsidiaries establishment during
corporatization is to perform business activities not only for the core
business but other related upstream and downstream as well. This
9

can create value added business opportunity and to move forward

commercial operation of business activities planned by FELCRA
Berhad. In long term, the subsidiaries will be incorporated with other
participants.

The subsidiaries also act as a replacement of foreign distributor and

plantation developer. This is to ensure that all business activities
and profits is not channeled outside FELCRA Berhad, and can be
shared by other participants and steps towards Bumiputera
Comercial and Industrial Community (BCIC).

In the long run subsidiaries will be jointly owned with participant

institution. Subsidiaries also play a major part as successor to
external suppliers and complementing the development of the
plantation.
These strategies are being practised by other Government
companies such as PETRONAS which created Petronas Dagang Sdn
Bhd, Petronas Carigali etc and FELDA which created several
subsidiaries companies such as Felda Agricultural Services Sdn Bhd ,
Allied Engineering & Consultancy Services Sdn. Bhd etc.

The subsidiaries which wholly owned by FELCRA Berhad are as

follows:
a) FELCRA Bekalan & Perkhidmatan Sdn Bhd
b) FELCRA Foundation
c) FELCRA International Labuan Limited
d) FELCRA Travels and Tours Sdn Bhd
e) FELCRA Hose & Hose Sdn Bhd
f) FECLRA Daya Khas Plantation Sdn Bhd
g) FELCRA Bina Sdn Bhd
h) FELCRA Pelita Jemoreng Sdn Bhd
10

i) FELCRA Beras Industri Sdn Bhd

j) FELCRA Gedong Plantation Sdn Bhd
k) FELCRA Urus Estet Sdn Bhd
l) FELCRA Plantation Services Sdn Bhd
m) FELCRA Sundar Awat-Awat Plantation Sdn Bhd
n) FELCRA Processing & Engineering Sdn Bhd
o) FELCRA Niaga Sdn Bhd
p) FELCRA Training and Consultancy Sdn Bhd
q) FELCRA Balingian Plantation Sdn Bhd
r) FELCRA Agro Industry Sdn Bhd
s) FELCRA Cambodia Pte Ltd
t) FELCRA Ever Herald Sdn Bhd
u) FELCRA Education Services Sdn Bhd.
v) Permodalan FELCRA Sdn Bhd.

11.

MARKETING AND PROCESS

FELCRA Berhad marketed its Fresh Palm Oil Stem (BTS ) from the
plantation to nearby FELCRA Berhad oil palm's factory. The
transportation of BTS from the plantation to a nearby factory is
managed through contract / tender or direct negotiation with the
respective plantations co-operative.

For plantations located away from FELCRAs factory, sales contract

and BTS transportation are made through tender. The same goes
with rubber plantations where sales and transportation of latex or
rubber scrap are made through tender since FELCRA Berhad is yet
to have its own rubber factory.
11

FELCRA Berhad has eight (8) Palm Oil Factories including one (1)
owned by a subsidiary. FELCRA Berhads palm oil factories are
managed by subsidiary, namely FELCRA Processing & Engineering
Sdn Bhd.

12.

AGRICULTURAL PRODUCTS, TRADE AND TRAVEL & TOUR

Countryside Tourism
Countryside tourism is aims at providing additional income to the
society through house rental, Public Transport, Sales of Cottage
Product and tourist guide service. It will also creates and spurs
downstream activities such as food and handicraft enterprises as
well as creating a clean and beautiful village environment.

Apart from promoting positive attitude and open mindedness as well

as enhances the level of education, it also creates job opportunities
such as being tourist guide and converting the village as Training
and Learning Centre.

For countryside tourism purpose, RMK10 is projecting as much as

RM1,057,608.00 to be spent with main activities being the
development of Tourism Industry. These activities are expected to
give an impact to 6,532 participants.

Under RMK 10, FELCRA Berhad received a ceiling allocation of

RM5,900,000.00 for Homestay's programme in FELCRA's projects.
With the implementation of these programmes, an increase of
RM300 per household is expected while an increase between
RM150.00 to RM200.00 is expected for each participant. A total of
140 families (20 house / family) are involves in this project.

12

Livestock Integration Project

Prawn Farming
In RMK 10, prawn farming is expected to draw an earnings of
RM88,380,000.00 through the sales of 3,960 mt shrimps from 95
ponds. Projected profit /loss from the project is RM23.760 millions.

Cow Rearing
In the five years period of RMK 10, income of RM15.3 millions is
projected from the sales of 8,500 cow. The expected profit/loss is
RM9,047,636.00.

Ornamental Fish Rearing

In an effort to diversify livestock activities, ornamental fish (discuss)
has been the focus of RMK 10. Income from this activity is projected
at RM3,142,500.00 and some RM2,542,500.00 is expected to be
recorded in profit and loss account.

Goat Rearing
In the five years period of RMK 10, an income of RM1,452,500 is
projected from the sales of 4,300 goats. The projected profit and
loss from goat rearing activity is RM752,500.00.

Feedlot Technique Cow Rearing

In RMK 10, feedlot technique cow rearing will be implemented. An
income of RM38.49 millions from the sales of 20,000 cows has been
projected using feedlot activity. The projected profit and loss is
about RM8.370 millions and this programme is aimed at providing
additional income to participants.

13

13.

ENHANCE OUTPUT PRODUCTIVITY STRATEGY

Short-term Strategy
Short-term Strategy or Immediate Step which will be implemented
are focusing more on management and technical problem. This is
expected to give a positive impact within 3 6 month especially for
rubber plantations.
Immediate Steps which to be implemented are as follows:a) To emphasise more on plantation management aspects, thus
all agronomy practicse are fully complied with, faultlessly and
effectively in accordance to 'Good Agronomic Practices'
concept (GAP) which is core in all plantation activities.
b) Escalating commitments and cooperations at all management
levels on action, enforcement, monitoring, and plantation
supervision activities especially in the aspect of crop yield.
c) To enforce the 'roll call' and daily result monitoring practice to
ensure that all products are produced with high quality and
are marketable for optimal returns.
d) Daily production monitoring has been implemented in all level
from field level up to headquarters.
e) To increase productivity and quality through introducing
incentive scheme based on productivity with emphasis on the
quality of the product.
f) To stress on the importance of KGK's increase in percentage
for rubber and high Oil Excretion Rates (OER) percentage for
palm oil at all production and marketing levels towards
increasing the bottom line of the plantation.
g) As such, a close cooperation and relationship shall be formed
between plantation and factory (FELCRA's factory and
outsider) in overcoming all arising issues.
h) It is expected that incentive payment will prevent rubber
tappers from migrating to other places.
i) To update the supply and delivery system of fertilizer to the
plantation, enabling the supply to be received and used at the
time when it is needed.
j) Likewise, the fertilization method will also be rescrutinised to
make it more efficient and effective particularly on the hilly
area which experience strong erosion and high rainfalls.
Method such as using compound fertilizer or sub soil
fertilization methodology is recommended.
14

k) To increase productivity minimum potential of each tree by

implementing recommended block agromonic fertilization
based on productivity output per block.
l) Ensuring that drainage and trench systems in all plantations
especially in flat areas, swamp and peat land be upgraded and
yearly maintenance carried out to ensure the effectiveness of
water management as well as optimizing the pH value needed
by oil-palm.
m) To implement yield management using agronomic block for oil
palm and tapping block / task for rubber to increase the
efficiency of monitoring and yield management.
n) As such, every problem is easily traceable for immediate,
specific and effective action according to problematic blocks in
accordance to Presion Farming Concept.
o) To tighten the existing crop security procedures which is being
practiced in plantations so as to prevent pilferage at all level
of production and sales.
p) To arrange for periodic meeting and discussion with plantation
management of which output performance of palm oil is less
than 15 mt / hectares and less than 1000 kg / hectares for
rubber.
q) To increase productivity by using the latest technology in
FELCRA's plantations such as :-

For rubber plantations, an area of 8,735 hectares has

been implementing the rubber exploitation technology
under LITS's programme (Low Frequency Tapping
System) as at December 2006.
The implementation will be expanded until the targeted
23,000 hectares of rubber plantations is achieved within
RMK 9 (plantation > 15 years).
Whereas for rubber estate aged < 15 years, the use of
Ethepon's stimulation will be tightened and given
serious attention.
In oil palm plantation, the implementation of Plantation
Mechanisation Programme that is more exhaustive,
integrated and effective is expected to minimise the
dependancy on labour force (100 % manual) in carrying
out plantation works especially the harvesting. The
implementation focuses on sizable plantations which
often experiences shortage in labour force and resulted
in high revenue losses. As at December 2013, 14,198
hectares or 37 plantations have implemented the
15

programme and the implementation will be continued

until the targeted 48,000 hectares (suitable in
topography aspect) is achieved within RMK 10.
r) To increase the potential output of each tree (kg / tree)
especially for rubber through the implementation of methods
and practices as follows :

To implement the spare tapping practice in a more

orderly and serious manner in an effort to reduce the
rate of loosing untapped task.
To review the existing tapping system to ensure that all
task tapping at the plantation is being tapped
completely while ensuring the tapping frequency of 100
tap / task / year as a second target.
To emphasise on tapping discipline by ensuring panel
treatment is fully implemented to mitigate multi panel
tapping on a rubber tree.
Beside that, census on trees with dry skin should be
done every 3 months to maximise the number of tapped
tree at any one time.

Long-Term Strategy
Long-term strategy which will be taken or implemented are as
follows :a) In implementing replanting programme, a more serious and
proper supervision and monitoring on the implementation will
be conducted to ensure that the plantation is viable and
profitable.
b) An uncompromising observation must take place from the
planning and implementation of general agriculture works up
to harvesting stage so that every activity is done according to
proper agronomy practice and managed in a more organized
and efficient manner.
c) To implement oil palm cultivation by using quality and highyielding planting material ('high yielding clone') whereas for
rubber, the cultivation using 'latex timber clone' towards
'rubber forest plantation' mainly in hilly areas. The use of
these latest clone seeds are expected to produce higher yields
crop thus increases plantation competitiveness.
d) To widely implement the use of latest technologies such as
GPS, Satellite Imagery, host plant and others for the purpose
of plantation monitoring and development of future plans.
16

e) To ensure that works being carried out at the plantation are

based on stated guideline and standard operating procedure
(SOP).
f) To organise training or technical courses to all plantation
employees especially area manager and providing reading
materials
containing
technical
information
and
the
fundamental of management. This move is expected to
increase the technical capabilities, management capabilities
and confidence towards increasing the quality and
productivity of the staff.
14.

PARTICIPANTS DEVELOPMENT
FELCRA function as a leading participants economy and social
management and their rural area. It is also work as corporate entity which
concern
on
poor
community.
Social Obligation scope and program provided by FELCRA Berhad as
philosophy requirement for current rural development that include
participants management service, rural development, economy
development, institution development and land management.
NUMBER OF FELCRA BERHADS PARTICIPANTS ACCORDING TO
STATE
STATE
PERLIS
KEDAH
PULAU PINANG
PERAK
SELANGOR
NEGERI
SEMBILAN
MELAKA
JOHOR
PAHANG
TERENGGANU
KELANTAN
SARAWAK
SABAH
GRAND TOTAL

17

NO.
516
5,297
445
23,305
4,326
10,702
4,927
11,062
17,134
5,321
2,862
4,808
1,766
92,472

NUMBER OF HARDCORE POOR PARTICIPANTS

15.

STATE

NO. OF PROJECT

PERAK
JOHOR
MELAKA
N.SEMBILAN
TERENGGANU
GRAND TOTAL

3
8
3
18
12
44

TOTAL
PARTICIPANTS
5,131
1,143
162
650
532
8,292

DEVELOPMENT IMPACT
a) Generate Income Through Plantation Development
Participants generate income from the job opportunities at
plantations together with annual dividend from the plantation
profits. Income from the plantations given according to the
participants' land area. Since 1991 2013 FELCRA Berhad has
paid dividend of RM 2,236,729,786 to 89,257 participants.

b) Small and Medium Industries Development (SME)

For SME development, four (4) main activities enrolled such
as Product Development and Marketing Program, Research
and Development Program, Economy Project Fund and State
Level Expos. Under RMK 10, FELCRA Berhad has received
allocation to help support the FELCRA entrepreneur in the
programmes:
i.

Entrepreneur Training
Core Development RM 9 is to focus on human
resource development for economy development
18

based on knowledge and enhanced productivity and

competent.
ii.

Marketing/Promotion
Promoting rural product especially in food and
agriculture sector by providing marketing network for
local and foreign market.

iii.

Premise/IKS Factory
Providing infrastructure/premise for proper, planned
and convenience food product processing and
packaging. Aiming 120 entrepreneurs for food and
agriculture product will benefit in term of processing,
packaging, labeling and branding.

iv.

Rural Tourism
Rural Tourism is to give local residents extra income
through house rental, public transport, rural product
sale and tourist guide service. It is also will create
and move the downstream activities such as food
and handicraft industry as well as creating a beautiful
and clean environment. Besides upgrading the
hospitality and education it also create job
opportunity such as tourist guide and making the
village as Knowledge and Training Center.
Under RM 9, FELCRA Berhad has received allocation
for Homestay program at various FELCRA projects as
follows :i.
ii.
iii.
iv.
v.
vi.

Kuala Medang - Pahang.

Sungai Ara - Johor.
Kg. Belimbing - Sarawak.
RPS Kemar - Perak.
Teratak Batu - Kelantan.
Bukit Sedanan - Melaka.

19

16. INFORMATION
COORDINATION

TECHNOLOGY

FOR

CONTROL

AND

The usage of Information Technology covers and control 8 Regions

and 2,000 Projects as well as FELCRA Berhad headquarters. It uses
Wide Area Network (WAN) Information Technology structure which
connects several servers and personal computers to optimize its
business and services efficiency. For remote area projects which is
very poor in communication infrastructures, satellite dishes are
being used to connect with the servers located at FELCRA Berhad
Headquarters. Management Information System Department located
at FELCRA Berhad Headquartes is responsible to ensure that all
Information System is utilized and operated smoothly. Information
system which are utilized are as follows:
i.

ii.
iii.
iv.

17.

System Application and Product (SAP) Budget, Financial and

Accounting, Inventory and Manufacturing, Human Resource,
Purchasing, Sales and Distribution
E-System Key Performance Indicator (KPI), Fleet
Management, e-Leaves
Time Management System (TMS)
Business Intelligence (BI) Management Decision Making

EMPLOYEE SELECTION
FELCRA Berhad adopted the processes of screening potential
employees to work in this organization. Therefore, FELCRA Berhad
applies these processes to employ its staffs:i.
Interviewing potential employees such as posting Web ads
and ads in newspapers.
ii.
In-house employee selection
iii.
Rank and file to select employees who has tacit knowledge
(especially in plantation management)

18.

EMPLOYEE INCENTIVES
In terms of providing incentives, FELCRA Berhad also consider
these incentives to its employees accordingly such as:
a. Loyalty rewards
b. Remote area incentives
20

c.
d.
e.
f.
g.
h.
i.

Retirement benefits 2 x last salary x years of service

Telephone allowance
Housing benefits
Medical and dental care RM 1,500.00/year
Group Term Life Insurance 36 x Basic Salary
Spectacles Allowance RM1,000 every 2 years
Maternity and paternity benefits
i. Give birth at government and privates hospitals:
RM2,500 RM3,000.00
ii.
Paternity leave - 3 days
iii.
Maternity leave 60 days

21