World · Malaysia Bureau
FELDA's Capital Fund Pledges Staged Payment of Member Share Arrears
Koperasi Permodalan Felda Malaysia Berhad has committed to settling accumulated member share withdrawals through a phased payment approach, citing significant cash flow pressures from a sharp surge in redemption requests over the past five years.
LSN Malaysia ·
The cooperative, which serves Federal Land Development Authority members, attributed the financial strain to an unexpected spike in share withdrawal applications that has accelerated dramatically since 2019. The sudden surge in redemption requests has created considerable pressure on the organization's liquidity position, prompting management to implement a structured repayment schedule. Officials said the staged payment approach would allow the cooperative to manage its cash reserves more effectively while ensuring members receive their due entitlements. The cooperative did not specify the total value of arrears or provide a timeline for completing the payments under the new arrangement. The move reflects broader challenges faced by cooperative financial institutions across the region in managing member redemptions amid volatile economic conditions and changing investment preferences among stakeholders.