GOVT TO SET UP FELDA INVESTMENT COOPERATIVE 2, SAYS PM

KUALA LUMPUR, July 30 (Bernama) -- The government will set-up Felda
Investment Cooperative 2 (KPF2), with an initial fund of RM10 million (US$3.14
million), to assist the new generation of settlers to be involved in the business
activities and development of Felda's companies.

At present, the new generation of Felda (Federal Land Development
Authority)settlers are not allowed to become members of Felda Investment Cooperative
Bhd (KPF), set up on July 1, 1980.

"The government realises that the new generation of settlers want to be involved
in Felda's economic activities. Infact many of them want to be partake in
Felda's business developments via a cooperative movement," Najib said in a
statement Friday.

He said KPF2 would focus its activities on the physical development of Felda
settlements besides holding a specific equity in Felda's various businesses.

However, it will not compete with Felda Investment Cooperative but
complement its existing operations.

"As such, on behalf of the government, I will like to invite the new generation
of settlers to be involved in KPF2 and become invovled in the various investment
activities of Felda subsidiaries.

"The government hopes this initiative would be welcomed by new Felda settlers
nationwide to help secure and improve the economic status of their families,"
Najib added.

At present, Felda settlers invest in KPF which holds a 51 per cent
shareholding in Felda Holdings.

Todate, KPF with a membership of 189,415 and a share capital of RM1.2 billion
(US$377.24 million), has been able to increase members' income via attractive
annual dividends and bonus.

It declared an average dividend of 14 per cent, annually, the highest declared
by any cooperative in the country. (US$1=RM3.19)
-- BERNAMA