Malaysian palm oil producers Felda and FGV are able to resume their Terengganu operations after the state granted a one-month extension.

The Federal Land Development Authority of Malaysia (Felda), and its commercial arm FGV holdings Berhad, will resume operations at their palm-oil plantations in Terengganu following a month's extension to resolving a land dispute.

Following a positive conversation with the state authorities, Felda and FGV can now concentrate on increasing yields, strengthening settler families' incomes, and community development in these areas.

FGV delisted from the stock exchange in August. It is now owned and controlled by Felda. FGV's?oil-palm landbank totals 324,563 acres and its?production of fresh fruit bunches last year reached?3.97 millions metric tons.

Terengganu's state government announced in a Facebook post on Monday that they had agreed to extend their remedial period until January 7, 2015 to resolve the dispute. This involves state-owned lands occupied by Felda as commercial plantations.

The state government said that it would hold talks to reach an accord in the next month. They added that they would allow FGV operations to continue immediately.

It added that the notices issued for violations?under Section 425?of the national land code?will be removed as soon as an accord is signed with Felda.

Felda and FGV claimed that the state government issued a notice last week demanding they leave Terengganu, demolish their buildings and destroy their crops within three days. (Reporting and editing by David Stanway; Ashley Tang)

(source: Reuters)