KPF’s Al-Rawda exposure raises fresh questions over RM119.38 million

Koperasi Permodalan FELDA (KPF) is under scrutiny over its financial dealings with Al-Rawda Investment for Real Estate Development & Project Management Ltd, an Arab Saudi company. Concerns were raised by FELDA member Ridhuan Esa, who pointed to significant increases in KPF's exposure to Al-Rawda, rising from RM9.86 million in 2015 to RM40.45 million in 2016.

Ridhuan stated that the current book value of the financing reported at RM119.38 million in KPF's 2025 financial statements raises questions about the cooperative's ability to recover the money. He also claimed that KPF had taken its dispute with Al-Rawda to international arbitration to recover the funds. Ridhuan's concerns extend beyond this matter, questioning KPF's overall financial position and dividend policy, suggesting that dividend payments may not be fully supported by the cooperative's earnings.

He urged members to evaluate the cooperative's financial health, governance, risk management, and potential for generating genuine profits at the next annual general meeting. Ridhuan proposed expanding KPF's membership to include more than two million people within the FELDA community and suggested board members be selected based on qualifications rather than political influence.

The controversy surrounding the RM119.38 million figure extends to the future of KPF as an institution built by generations of FELDA settlers and employees.