Article
Incentive wage concept: Its operation in a FELDA Scheme
Incentive wage concept: Its operation in a FELDA Scheme
Hairuddin Md. Bakri; Nayagam J; Mohd. Yusof Shahabuddin
In: Proc. Rubb. Res. Inst. Malaysia Rubb. Grow. Conf. Desaru, Johore, 1987 p. 360-369
ABSTRACT :
Land schemes are developed by a number of Government agencies at the Federal and State levels; the principle one being the Federal Land Development Authority (FELDA). Approximately 90% of FELDA’s total expenditure in developing land schemes is recoverable from the settlers during the income-generating phase of the scheme. However, the mode of payment to the settles and the formula for computing loan repayment presently used are ineffective when the price of rubber is low. In view of this situtation it was proposed that some aspects of the ‘RRIM Incentive Wage Concept’ be adopted to operate and manage the FELDA rubber areas. In this context a modified version of the concept reffered to as MAS System was tested in FELDA Sungei Mas since mid-1986. Preliminary findings based on a year’s data showed that MAS System can enable the scheme to operate as a self-financing unit. The net profit is large enough to meet the development cost repayment and the monthly income of the settlers is reasonable and directly related to their productivity.
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