Malaysian government agency Felda Group has shut down its dairy business, FGV Dairy Farm, which collectively owed RM 4 million (USD 966,651) to 112 farmers and vendors, The Edge reported on 20 June 2026.
While the sum is likely to be a “chump change” to Felda, some of the affected farmers and vendors are now seeking legal action, according to The Edge. This came as Bank Pertanian Malaysia (Agrobank) reportedly plans to auction off FGV Dairy Farm’s assets, including a farm and other infrastructure, to recover RM 10.3 million (USD 2.5 million).
The dairy spat is the latest in Felda’s mis-steps over the years, which included an expensive Indonesian plantation deal that it’s been struggling to unwind.
I wrote on 20 August 2025 that the Malaysian group has been waging an uphill battle to claw back its investment in Indonesian conglomerate Rajawali Group’s palm oil producer Eagle High Plantations.
When the transaction was first announced in 2015, some minority shareholders and politicians accused former Malaysian Prime Minister Najib Razak of pushing the deal to help his Indonesian friend Peter Sondakh, who controls Rajawali. This was denied by both sides.
The Indonesian tycoon crossed paths with Najib when the Malaysian politician was still rising up the ranks of the United Malays National Organisation (UMNO), and they stayed in touch over many years, according to a Malaysian source familiar with the matter.
After the initial backlash, the proposed acquisition was shelved temporarily and revived in December 2016, with a reduced price and a put option that would require Rajawali to buy back the Eagle High stake at USD 505.4 million plus 6% annual interest.
Felda’s unlisted unit, FIC Properties, exercised this put option and eventually won against Rajawali at the Singapore International Arbitration Centre. But the Indonesian group moved to block the enforcement of the arbitration award in Indonesia.
As I wrote last year, Felda may have to slog through the Indonesian court system with uncertain prospects. Indonesian law does not recognize foreign court judgments and applicants seeking enforcement typically must “re-litigate”, potentially adding to their legal costs.
🌏 Around the Region
Indonesia
President Prabowo Subianto’s free school lunch initiative has been mired in controversy including food poisoning and alleged corruption, on top of weighing down the state budget.
I wrote on 19 April 2025 that Prabowo’s predecessor, Joko Widodo, also embarked on an expensive infrastructure expansion during his term, but there was a perception in some quarters that roads, rails and airports were a more concrete product of these state investments.
The government reportedly announced last week that it would halt the free meals program during school holidays and scale back its reach. The president was likely forced to rein in his flagship scheme because the market outflows and the rupiah’s drop to record lows risked hurting the lower-to-middle income class, which is a key voter base for the former general.
However, it would be too early to infer that the move signals a greater commitment to fiscal discipline. I wrote four months ago that the president had turned more insular and kept a tight inner circle, while technocrats were finding it harder to get their voices heard.
The real marker of a change would be if the Indonesian leader brings more technocrats into his key decision-making circle.
Vietnam
Vingroup is accelerating construction in Hanoi of what it says will be the world’s largest stadium, betting that future demand will emerge to make the 135,000-seat venue financially viable over the long term, Reuters reported.
Vietcap Securities has signed a $170 million syndicated loan agreement, with a greenshoe option allowing the facility to be increased to up to $370 million. Check out the list of lenders here.
Singapore
Singapore Airlines is set to sell its first five-year benchmark dim sum bond, an offshore yuan bond issued outside mainland China, and has hired four banks to arrange the potential deal, Reuters reported.
Keppel is planning to launch several residential projects in Vietnam’s capital Hanoi, ramping up its push into the northern property market, Nikkei reported.
Philippines
The Philippine central bank raised its key interest rate by 25 basis points for a second time in a row and left the door open to additional tightening as inflation pressures remain strong, Reuters reported. Check out the note written by MUFG’s Michael Wan on the expected outlook.
🤝🏻 People to Watch
After 16 years leading Ginting & Reksodiputro (G&R) in association with A&O Shearman, Daniel Ginting will be stepping down from the partnership to take up a strategic senior role at Indonesian sovereign fund Danantara, according to the law firm’s LinkedIn post.
Daniel co-founded G&R in 2010 together with Harun Reksodiputro, who will now succeed him as managing partner.
Acrostics Asia is an independent credit intelligence provider that delivers forward-looking insights across Asian sovereigns, private credit and restructurings.