RM66mil boost for Felda staff housing plan [WATCH]

KUALA LUMPUR: The Federal Land Development Authority (Felda) has allocated around RM66 million to develop 189 staff housing units in phases under a nationwide modernisation initiative.

Felda chairman Datuk Seri Ahmad Shabery Cheek said following decades of extensive rural transformation, around 90 per cent of Felda settlers now live in modern brick bungalow-style homes.

The initiative is explicitly designed as a vital intervention to lift the spirits of the workforce, giving them a presentable living standard that matches their professional grades and inspires better service delivery, he added.

The master blueprint outlines the comprehensive construction of 450 new staff houses across various settlements, beginning immediately with this initial 189-unit rollout.

Encorp will develop the 189 units in three phases, comprising 62 units in the first phase, 63 units in the second phase and 64 units in the third phase.

While the final project value will only be determined upon the issuance of the letter of award, which is expected by the end of June, Shabery said the construction cost is estimated at between RM300,000 and RM350,000 per unit based on the architectural designs unveiled today.

"While the total project value cannot be disclosed at this stage, it can be roughly estimated based on the development of 189 housing units," he said at the signing of a memorandum of understanding between Felda and Encorp Bhd for the staff housing project here today.

The agreement appoints Encorp as the main contractor under a design-and-built model to replace decaying quarters and elevate worker morale.

Funding for these initial 189 units will be drawn entirely from Felda's existing internal service budget, utilising revenues generated from its corporate land reserves without involving settler funds.

Ahmad Shabery said the specific funds were safely allocated prior to recent global economic pressures, effectively shielding the project from current inflationary market shifts.

Encorp, which is 62 per cent owned by Felda, brings over 25 years of construction experience to the table.

This includes a track record of delivering massive government projects such as nationwide teacher quarters, alongside the successful 2024 completion of 224 residential units for Felda settlers at Lamanda Chuping Phase 1 through its subsidiary Encorp Development Sdn Bhd.

Despite the close subsidiary relationship, Ahmad Shabery said the company underwent a rigorous corporate governance and vetting process to secure the project.

He said there will be absolutely no compromise on standards, quality, or delivery capabilities, framing the project as a strict corporate litmus test.

Felda plans to expand the partnership into further ecosystem development contracts, including regional land works, if Encorp delivers the initial phase.