The Privatization of FELDA: A rent‐seeking approach

Abstract

This thesis seeks to identify the motives for the privatization of FELDA. Of interest are the desired competencies and elements the government is ostensibly pursuing through the IPO of FELDA Global Ventures Holdings (FGVH). The examination will particularly focus on the institutional framework, the regulatory policy and political environment surrounding this exercise. Nonetheless, it is the contention of this thesis that the latter will be the most damaging, subverting Malaysia’s institutional and regulatory capacity in the process. Hence, this thesis attempts to determine the extent of corruption and rent‐seeking activity undertaken throughout the privatization of FELDA. In identifying and analysing rent‐seeking and corruption I particularly focus on the 2012 IPO of FGVH in 2012. Nonetheless, an examination of the organization’s history within an institutional, regulatory and political context is provided. FELDA is an exceptional entity that predates Malaysia’s independence, is ordained by law and has sustained the concerns and livelihood of over 100,000 settlers. This expanded historical examination is necessary for reflecting on the changes in nature of the rent‐seeking activity utilized throughout the authority’s life span. This thesis argues that beginning with essentially productive and developmental rents, these were later subverted with the onset of privatization related restructuring in 1991.