Felda nears deal to sell Merdeka Palace to Permodalan Satok Bhd
by Samuel Aubrey · Borneo Post OnlineKUCHING (April 9): The Federal Land Development Authority (Felda) is in the final stages of concluding the sale of Merdeka Palace Hotel & Suites to Permodalan Satok Berhad.
Felda chairman Datuk Seri Ahmad Shabery Cheek said both parties have reached an agreement, with the transaction now pending approval from higher authorities.
“Regarding the sale of Merdeka Palace Hotel, there is already an agreement with Permodalan Satok. We have reached the final stage of negotiations and are now only awaiting approval from the relevant authorities,” he said, according to a TV Sarawak report.
He was met by the press after paying a courtesy call on Sarawak Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg at the Satria Pertiwi Complex here.
Ahmad Shabery added that Felda, as an agency under the Prime Minister’s Department, will ensure the sale is conducted transparently and in accordance with established regulations.
“God willing, it will be managed properly. We do not want a hotel that is historically significant and a landmark in Kuching to fall into unsuitable hands that do not align with the needs of the state and the country,” he said.
Meanwhile, the Sarawak Information Department reported Ahmad Shabery as saying that Felda is exploring potential collaboration with the Sarawak government in land management, plantations and green economy initiatives.
He said the matter was discussed during the meeting with Abang Johari.
Ahmad Shabery noted that although Sarawak does not have Felda land schemes like other states, the agency still holds interests in the state through asset ownership, including land, plantations and investments via subsidiaries such as FGV Holdings Berhad and related cooperatives.
Among the key matters discussed was the need to reassess asset utilisation to ensure optimal returns, whether by retaining them under Felda or managing them more strategically through related entities.
“Felda will hold further discussions with the Sarawak government to identify the best approaches in land management and asset development in line with the state’s needs,” he said.
He also described Sarawak as progressive in implementing green economy initiatives, including the use of renewable energy such as solar and hydropower, as well as circular economy practices.
He said the shared strengths between Felda as a large-scale plantation agency and Sarawak’s sustainable development approach present opportunities for collaboration in shaping policies at the national level.
“Such cooperation is vital in the context of federal environmental policies, including the implementation of carbon tax and carbon credit mechanisms, which have the potential to generate new revenue through sustainable forest and plantation management,” he added.