{
  "id": 16140592,
  "title": "Economist questions basis for further funding in failed TH-FGV venture",
  "url": "https://urgent.news/2026/10/23/economist-questions-basis-for-further-funding-in-failed-th-fgv-venture-16140592",
  "topic": "world",
  "section": "World",
  "published": "2026-10-23T01:00:00.000Z",
  "source": {
    "name": "Free Malaysia Today",
    "slug": "free-malaysia-today-freemalays",
    "url": "https://www.freemalaysiatoday.com/category/nation/2026/10/23/economist-questions-basis-for-further-funding-in-failed-th-fgv-venture"
  },
  "original_language": "en",
  "account": "In 2019, an economist criticized the decision-making process of Tabung Haji and FGV Holdings when it came to their involvement in the struggling joint venture, Trurich Resources. According to Barjoyai Bardai, the two government-linked entities should have conducted their own independent assessments of the company's assets, performance, and future prospects before injecting further funds.\n\nBardai argued that the decision to provide additional capital should not be made simply because a significant amount of capital had already been spent. The royal commission of inquiry (RCI) report revealed that the pilgrim fund's RM364.31 million investment in Trurich had been fully impaired due to the venture's insolvency, which left it with no remaining recorded value.\n\nTrurich, which operated oil palm plantations in Kalimantan, Indonesia, had initially been valued at RM1 billion by FGV in 2019, but Bardai pointed out that this figure was overly optimistic and did not account for the poor condition of the plantations. The joint venture had reported losses of approximately RM234 million in 2019 and had received an additional RM120 million in funding as of October 30, 2019.\n\nBardai suggested that both partners should have independently evaluated whether the reasons behind the losses could be addressed and determined if alternative solutions, such as asset sales, restructuring, or exiting the business, would offer better prospects. He emphasized that any further funding should be tied to clear recovery targets, spending limits, and a mechanism to halt financing if those targets were not met.\n\nThe RCI report also revealed that approval was granted in December 2020 for the disposal of Trurich's subsidiaries, with FGV and Maybank leading the negotiations. However, Bardai cautioned that approval alone does not guarantee a successful recovery. The final success of the recovery would depend on factors such as the sale price, outstanding debts, transaction costs, and eventual net proceeds.\n\nBardai stressed that the measure of a successful recovery is not merely how long the investment can continue but how much economic value can still be recovered with a reasonable additional risk. He argued that the wider economic cost of tying up capital in struggling ventures could limit new investment opportunities for organizations with limited cash positions and access to financing.\n\nFor Felda settlers and Bumiputera entrepreneurs, repeated corporate losses in ventures like Trurich Resources could lead to less room for business development, training, and productivity improvements. Bardai also noted that spending cuts could negatively impact agricultural suppliers, contractors, transporters, and result in weakened expansion, limiting new job opportunities.\n\nIn conclusion, Bardai urged institutional performance to be measured through higher productivity, incomes, business opportunities, and job creation for the intended beneficiaries, rather than solely focusing on asset values.",
  "summary": "Barjoyai Bardai says Tabung Haji and FGV Holdings should have conducted independent assessments instead of relying on an ‘overly aggressive’ 2018 valuation of Trurich Resources.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}