The Federal Land Development Authority (Felda; Malay: Lembaga Kemajuan Tanah Persekutuan, LKTP) is a Malaysian government agency that was founded to handle the resettlement of rural poor into newly developed areas (colonies, settlements or schemes) and to organize smallholder farms growing cash crops.
[2] The first Felda colony was opened at Lurah Bilut, near Bentong in western Pahang in 1958, comprising 2946.88ha of land and focused on rubber.
[3] In the 1960s and 1970s, government policy began to emphasize crop diversification, in an effort to avoid being affected if the world price of rubber were to drop precipitously.
In 1961, Felda's first oil palm settlement opened, with 3.75 square kilometres (1.45 sq mi) of land.
[10] All settlers were required to reside at the settlement itself, and were allotted .25 acres (0.10 ha) in a planned village, where their home—already built by Felda—was located.
However, the settlers did not prefer this scheme, as workers who did not tend to the land properly still benefited (a sort of free rider problem).
[11] In recent years, the growth of urban areas has led to a substantial increase in the land value of some settlements.
Meanwhile, LCDA uses a joint venture model involving state agency, native land owners, and private investors.