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Soon, longer land leases on request
09/07/2009 NST

LANDOWNERS will have the leasehold period extended automatically on request under a recently-approved bill. This applies to land in new villages, agriculture zone, industrial plots and housing estates, where leaseholds may be extended by 60 or 99 years.

Menteri Besar Datuk Abdul Ghani Othman said this would allow landowners to reap benefits from their land for generations to come.

"By doing so, the state will gain sustainable income from the payment of land premium, which is paid to extend the leasehold."

Outside the state assembly yesterday, he said the land premiums depended on the current market value of properties and as land values would increase over the years, "this will ensure prolonged revenue" for the state.

Sixty per cent of Johor's revenue was from land premiums and quit rent collection, with land premiums representing a third of the revenue.

Most recently, the state government collected RM280 million in quit rent and a further RM100 million from land premiums.

The state government decided on March 11 that all land titles would be issued with an endorsement allowing for the automatic extension of leaseholds upon request, on the condition the government had not earmarked the land for development.

The leasehold period for land in new villages is 21 years, industrial land is 60 years and land for homes is 99 years.

The bill allows landowners to extend the leasehold before the current period ends.

"The policy is fair as it gives equal treatment to all land-owners."


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