The Felda Investment Case: RM2.5 Billion Loss and a Letter from the Malaysian PM to Prabowo
Malaysian Prime Minister Datuk Seri Anwar Ibrahim has written to President Prabowo Subianto regarding Felda’s investment in PT Eagle High Plantations Tbk (EHP). The investment is said to have the potential to cause losses of up to billions of ringgit.
Anwar stated that the total potential loss could reach RM2.5 billion, or approximately Rp10.75 trillion (at an exchange rate of Rp4,300), as a result of decisions made by Felda’s previous management. Meanwhile, the funds that could still be salvaged amount to only around RM200 million.
“This investment is currently undergoing legal proceedings in Indonesia. I have written a letter to President Prabowo to ask him to review this matter,” Anwar was quoted as saying by The Star on Monday (24/8/2026).
For context, Felda is a Malaysian government agency that manages agricultural land development, primarily to support the welfare of rural communities.
In December 2016, Felda, through FIC Properties Sdn Bhd, purchased shares in EHP in Indonesia worth US$505.4 million. The purchase price drew widespread criticism for being considered far too high compared to the market value and the subsequent share price.
Anwar said the disclosure of the financial crisis figures was intended to ensure that all levels of Felda’s management understand the scale of the challenges faced in the recovery effort.
“What I want to emphasise is that all Felda managers must truly understand this problem. They must not be disheartened, but must realise that these problems must be resolved,” he said.
Regarding broader recovery efforts, Anwar confirmed that the government is committed to accelerating basic welfare projects without having to wait for next year’s budget.
He also stressed that the emphasis on governance, integrity and accountability is not aimed at finding fault with any particular party, but rather at maintaining public trust and ensuring that Felda once again becomes an institution the nation can be proud of.