Felda Global Ventures (FGV) Holdings could head in the same direction as Proton and ailing Malaysia Airlines if the government does not take action to turn around the company's poor performance over the past two years, a MP warned.
 
DAP's Petaling Jaya Utara MP Tony Pua said that FGV's collapse in its stock prices has reached 36.77 percent from 2012, till October this year.
 
He said that this collapse would have already cost government-owned shareholders such as  Employees Provident Fund (EPF), Tabung Haji, and Retirement Fund Incorporated (KWAP) almost RM1 billion for their combined stake of over 20 percent in FGV.
 
"The top management of FGV has been given enough time and they must take collective responsibility for this poor performance," he said at the Parliament lobby today.
 
"The government must take necessary action before FGV becomes completely dependent on the government, such as Proton, or even worse, MAS," he added.

In a written Parliamentary answer to Pua (right), the government attributed FGV's poor performances to a fall in crude palm oil prices globally and increase in competition, but Pua said that this answer was "less than honest".

Pua pointed out that in the same period of time that FGV's stock prices experienced a sharp fall, the stock prices for its peers have all experienced a fall ranging only between 1.6 percent and 6.3 percent in stock prices.

The other plantation companies are IJM Plantations, IOI Corp, Genting Plantations and Sime Darby.

"Not only was FGV a terrible stock to own over the past six months, it was a consistent underperformer within any measurable period ever since its listing in thr stock exchange," he said.

Laughing stock

He also criticised the "boasting" of FGV chairperson Isa Samad (below), who labelled the company's debut in Bursa Malaysia in 2012 as a "global sensation".

"The performance of FGVH over the past two years only made the statement a laughing stock," he said.

He pointed out that not only has the company failed to become a global powerhouse as predicted, it is even a "trailing laggard" in Malaysia.

He asked Prime Minister Najib Abdul Razak to take "decisive action" after "promising the stars" to Felda settlers who own about 18 percent of accumulated shares in the company.

Felda is under the purview of the Prime Minister's Department.

FGV shares closed at RM5.30 on its debut day and is hovering at around RM3.50 today.

Most reseach houses have a hold call on the share, citing expansion plans.


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