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Unviable Nafas subsidiaries to be merged or shut, ministry tells MPs

5 Feb 2025, 8:43 AM
Unviable Nafas subsidiaries to be merged or shut, ministry tells MPs

KUALA LUMPUR, Feb 5 — Subsidiaries of the National Farmers’ Organisation (Nafas) will be restructured through a merger process to enhance operational efficiency and reduce costs, the Dewan Rakyat was told today.

Deputy Agriculture and Food Security Minister Datuk Arthur Joseph Kurup said unviable companies that are financial liabilities to Nafas will be shut.

He said these were among eight strategies and directions to improve Nafas, ensuring the organisation is revitalised and operates according to its original objectives.

“A review of current businesses and projects will also be conducted to focus on viable enterprises and reduce reliance on the fertiliser supply sector,” he said when replying to a question from Datuk Seri Ronald Kiandee (PN-Beluran).

On the backlog in fertiliser distribution in several states, Arthur said an independent special committee would be established to oversee key decisions and prevent abuse of power in Nafas’ management.

He said the special committee would also provide recommendations for Nafas’ business plan for the next five years.

Nafas’ constitution was suspended effective November 1, 2024, in the interest of farmers, and reviews and investigations into its governance and administration have been completed to identify and improve the organisation’s operations and management.

— Bernama

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