Speaking to FMT, Awang Azman Pawi of Universiti Malaya said issues of corporate finance had little traction with rural voters.
“Those who are less knowledgeable on economic matters will not feel that FGV’s financial performance affects them,” he said.
“If we look at the Rompin by-election, the Felda issue was not effective for the opposition although it was played up a lot.”
He was commenting on PAS deputy president Tuan Ibrahim Man’s statement that FGV’s problems would likely cause Umno to lose votes in Felda areas.
Awang Azman said Felda voters would be more concerned over such issues as housing for second generation settlers, delayed payments for oil palm bunches and the cost of living.
“If Barisan Nasional wants to retain the support of the Felda settlers, the government has to take drastic and strategic measures immediately to address these issues,” he said.
A similar opinion was given by Mustafa Ishak, who heads the Political, Security and International Affairs Council of the National Council of Professors.
“For the settlers their main concern would be the cost of commodities and day-to-day issues,” Mustafa said.
“FGV’s performance would not concern many, except maybe those who are more economically inclined.”
In his statement, Tuan Ibrahim blamed FGV chairman Isa Samad for the plantation giant’s woes. He said FGV’s losses were due not only to low palm oil prices but also poor management.
FGV, the world’s largest crude palm oil producer, has been reporting poor returns for a few years.
FGV is reportedly the undisputed worst plantation stock performer ever following its initial public offering (IPO) in July 2012.
The decline in its share price had been so bad that Bursa Malaysia decided to remove it as one of the KLSE Index stocks last year.
FGV made its stock market debut with a listing price of RM4.45 per share. The government-linked stock closed at RM1.68 as of last Friday, which represents a massive 62.5% decline in its stock value.