He said this was because the state-owned land development authority was unable to foot the project bill.

He added that the government had no plans to postpone or cancel the project.

“As Felcra is facing cash flow problems, efforts are being made to continue with the project.

“If we receive good offers to monetise the assets, we will consider them,” he said in the Dewan Rakyat today.

He was responding to Ismail Mohamed Said (BN-Kuala Krau) who asked the ministry to state the rationale and long-term impact of selling the Felcra tower as construction was only 50% complete.

Azmin said the government planned to sell flats and commercial blocks, but only if it received satisfactory offers.

The agency, which plays a role similar to that of Felda, had planned to build its new corporate office along with other mixed development projects on the 4.2-acre site at Jalan Semarak.

However, Azmin said financial constraints were forcing the agency to sell the project, which has an estimated gross development value of RM1.1 billion.

He said as of Sept 20, about 41.2% of the office blocks had been completed, but with a delay of 96 days.

He said the project developer was initially supposed to design, build and finance the project, then return it to Felcra upon completion. He said the contractor had asked to mortgage the land, but this was not approved by the Felcra management.

Awang Hashim (PAS-Pendang) disagreed that Felcra was in such dire straits that it had to “beg” to raise funds.

To this, Azmin said the government was not begging, but applying a strategy to raise Felcra’s land value.

He said the 4.2-acre plot cost RM115 million.

“We cannot allow the land to remain without increasing the value. That’s why efforts are being made to develop the project.”