Anwar demands apology after Muhyiddin's 24-hour deadline to retract Felda debt claim

Prime Minister Anwar Ibrahim today responded to a letter of demand from Muhyiddin Yassin with a call for the former leader to apologise, accompanied by a copy of a document related to a debt waiver scheme for Felda settlers.

"So, I urge Muhyiddin Yassin to apologise for the slander hurled at me," Anwar said in a statement accompanying the assignment for financial service reserve account (FSRA) agreement related to the government's guarantee for Felda.

Muhyiddin had demanded an open and unconditional written apology from Anwar following the prime minister's claim that the debts of Felda settlers totalling RM8.3 billion had never been waived under his administration. 

In February, law minister Azalina Othman Said said that the government would not continue with the debt settlement efforts introduced by Muhyiddin in 2021.

Muhyiddin's government initiated the move to wipe out the settlers' debts in June 2020, a plan approved by the Cabinet four months later.

It included the issuance of a RM9.9 billion sukuk with a government guarantee to finance Felda's restructuring plans.

In February this year, Putrajaya said it was unable to continue Muhyiddin's plan to waive the settlers' loans.

Azalina said this was because it had a significant impact on Felda's cash flow.