KUALA LUMPUR – FGV Holdings Bhd (FGV) has been given a three-day deadline from the date of the notice delivery to vacate movable assets from 10 of its plantations in Terengganu, spanning approximately 15,000 hectares, effective immediately.
According to Berita Harian, state Agriculture, Agro-Based Industry, Food Security and Commodities Committee chairman Datuk Dr Azman Ibrahim said that once the deadline expires, a seizure process will begin under Section 425 of the National Land Code. Any seized items will be deemed property of the state government.
The deadline marks the conclusion of an extended negotiation period between the state government and the management of the Federal Land Development Authority (FELDA) regarding this longstanding issue, which dates back 40 years. Media reports indicated that FELDA had failed to respond to the state’s demand for 30 per cent of the gross profits from land cultivated by the agency on state-owned land for the past four decades.
Dr Azman confirmed that notices were issued today to the management of FGV’s plantations in Setiu, Besut, Kemaman, Marang, Dungun, and Hulu Terengganu. Notices were also posted on-site, covering 127 land lots.
“We issued the notices today, simultaneously across these 10 FGV estates,” Dr Azman explained while overseeing the notice postings at the FGV Setiu Estate office in Kampung Air Sejuk. “These actions are part of the state’s legal process in response to FGV’s encroachment on state-owned land.”
Following the seizure process, fines will be imposed on those responsible for the land encroachment. Additionally, civil lawsuits will be filed to claim damages for the losses suffered by the state during the prolonged dispute. Criminal procedures will also be initiated, as violations under Section 425 of the National Land Code are classified as criminal offences.
“The notices were sent to all members of the FGV Board of Directors as well,” Dr Azman added.
“This marks the beginning of legal actions after FELDA management’s persistent delays and evasions on this issue.”
The state government has expressed that the welfare of FGV workers is a top priority, ensuring that they are not unfairly treated during the restructuring process.
“However, at this stage, we cannot bypass their employer as these workers remain under FGV’s management,” he said.
The dispute stems from FELDA’s development of state-owned land into commercial plantations without legitimate ownership rights since 1985. The state government is demanding 30 per cent of the gross profits from these lands in four districts: Kemaman, Dungun, Marang, and Setiu.
Yesterday, workers at FGV plantations were urged to remain calm following the issuance of the encroachment notice by the Terengganu state government. Dr Azman reassured that workers would not face any punitive action. Should FELDA no longer require their services, the state government has pledged to offer alternative arrangements for the affected workers.
Dr Azman also highlighted that, despite the 40-day agreed-upon negotiation period, FELDA had not provided any response to the state’s claim. A final reminder letter was sent by the Terengganu State Land and Mines Director to FELDA’s Director-General on November 20, but still, no response was received.
“The government has made multiple attempts at discussions, but after 40 years of inaction and repeated delays from FELDA, we are left with no option but to pursue legal action,” Dr Azman added. “As a sovereign state protected by the law, we must act in the best interest of the state in accordance with the provisions of the National Land Code.”
Despite the tough stance, the government assured that the welfare of FGV’s workforce remains a priority as the legal process unfolds. The state is committed to ensuring they are not left vulnerable amid the ongoing land dispute. – November 30, 2025