Penang gives premium discounts for extension of leasehold lands, expired leases
The Penang government is granting premium discounts for the extension of leasehold lands and for leases which have already expired.
Chief Minister Chow Kon Yeow said following his announcement on the matter during the State Legislative Assembly in November last year, the policy has been enforced beginning Jan 1 this year.
“The matter has gained public interest and therefore, we are making this announcement again.
“The state government has agreed to grant premium discounts between 50% and 90% based on the current land value without considering the structures on the land. The valuation is not including the property. It is just the land. That is also a form of discount,” he said.
Under the law, all these leasehold lands would have to be reverted to the state upon the expiry of the leasehold period.
The state government has decided to extend these leases if the leaseholders apply for an extension of their leases.
Any extension will come with a premium. In Penang, the value of land is done by the Valuation Department. The premium is charged based on the land valuation.
Chow said the premium discounts cover all categories of land use, namely agricultural, residential, commercial, and industrial.
“Individual owners of agricultural and residential land are the groups that will enjoy the highest premium discount of 90%; while commercial leaseholders are eligible to enjoy an 80% premium reduction.
“Non-individual (company) leaseholders of agricultural and residential land will enjoy a premium discount of 88%.
“Meanwhile, industrial leaseholders enjoy premium discounts of between 50% and 75%; subject to some conditions which are detailed in the circular by the Penang Department of Lands and Mines director.
“Industry leaseholders (applicants) who operate on the said land and have an annual turnover of RM50 million or less will enjoy a discount of 75%. Those who operate on the said land and have an annual turnover of more than RM50 million will enjoy a discount of 50%.
“If the leaseholder does not operate or run the business on the said industrial land but leases it to another party, no discount will be given,” Chow told a media conference in Komtar on Wednesday.
He said the granting of these premium discounts is subjected to some conditions detailed in the circular by the Penang Department of Lands and Mines director.
“Among them is the imposition of a moratorium on the transfer of ownership for 10 years from the date of title registration.
“If the leaseholder wants to sell his land within the 10-year period, the leaseholder will be charged a premium of 100%, subject to the premium discount that has been paid before.
“The imposition of such conditions is to curb land speculation and to avoid parties trying to take advantage of the state government’s discounts,” Chow added.
He said that the Penang government decided to grant these premium discounts after considering the welfare of the deserving rakyat, although the implementation of these premium discounts would reduce the state’s revenue and implicate its finances.
Leaseholders can check with their respective District Land Offices for more information.
Source: Buletin Mutiara
