Deputy Minister in the Prime Minister's Department Datuk Razali Ibrahim today denied that Tan Sri Shahrir Abdul Samad was appointed chairman of the Federal Land Development Authority due to financial problems Felda faced under the leadership of Tan Sri Mohd Isa Abdul Samad.

He said Mohd Isa's term as Felda chairman ended on Dec 31 last year and that he remained as the chairman of Felda Global Ventures Holdings Bhd.

Any allegation of Mohd Isa's replacement being a punishment for him or of Felda having faced financial problems under Mohd Isa's leadership did not arise, he said at a press conference here.

Razali said he was convinced that Shahrir's wide experience in the government administration and several other positions, including as chairman of the Malaysian Palm Oil Board and chairman of the Public Accounts Committee, would serve him well as the Felda chairman.

He said he met Shahrir and the latter had expressed his views, especially about Felda's financial state and audit as well as investments.

On a proposal by Shahrir for a restructure of the Felda business model, Razali said he fully supported the suggestion to fulfil the hopes of the settlers.

"Felda engages in activities not only in the plantation sector but also investment, education and the community.

"As such, these matters should be implemented in a more organised manner. He has also suggested giving emphasis to the question of housing of Felda's new generation," he said.

Prime Minister Datuk Seri Najib Tun Razak announced the appointment of Shahrir, who is Johor Bahru MP, as the new Felda chairman last Friday.

In KUALA LUMPUR, Malaysian Malay Businessmen and Industrialists Association of Malaysia (Perdasama) President Moehamad Izat Emir said Shahrir's appointment was seen capable of solving the problems faced by Felda.

"Under Tan Sri's (Shahrir) leadership, the Malays have high hopes to see more success stories involving the children of settlers," he said in a statement here today.

He said each four-hectare of land given by Felda to its settlers should become the stepping stone from them to develop the rural industry, as well as modern innovations that could penetrate local and foreign markets. -- Bernama