Penang Properties News

LAND premium is a “sensitive” topic for many people in Sarawak even after it was announced that property owners will now pay a flat rate to renew their leases and there will be no more confusing calculations to deal with.

It seems too good to be true. After all, the land lease renewal policy which had been the cause of much controversy and frustration among the people was only introduced about two years ago and the government had been adamant that it was a fair policy.

On top of that, Chief Minister Tan Sri Abdul Taib Mahmud chose to announce the new flat rates at the height of campaigning in the Sibu by-election last Friday, leaving people wondering if it was just to woo voters.

StarMetro interviewed several residents in Kuching yesterday but most were not keen to discuss the new deal. Those who were willing to talk did not want their identity to be revealed for reasons best known to themselves.

One of them, Tan, 55, felt the new rates were good news for the people but he is still waiting for it to be “official”.

“Well, the Chief Minister have said it so I suppose it is confirmed but it’s still very hard to tell whether it would be well received since it has not been implemented,” he said.

The stall owner at Kenyalang Park here said though the people need not rack their brains over the calculations anymore, he believe the next important issue would be whether those who had just recently renewed their leases could get a refund.

“Personally, I do not think it would be fair to refund them since this decision has just been made. It won’t be easy to refund them anyway. They can’t say it’s not fair too because we cannot predict these changes,” he added.

A general worker who wished to be identified only as Nicky agreed that having a flat rate was a good idea because the past calculations had caused much anxiety.

However, he was still not satisfied with the new rates, saying it was a bit expensive.

“I think the government should lower it a bit since the cost of living is getting high. It would certainly make it hard for people with low income to pay these rates,” said the 45-year-old.

When asked how much lower? He replied: “RM200 at most.”

“I have not renewed my lease yet and I still have a long way to go so to hear that the government is imposing a flat rate, takes the burden off a little,” he said.

Meanwhile, an electronic shop owner Hii, talking on shophouses, said he felt the rates were low compared to other states. “I read that we are still paying lower rates so that’s good but whether having a flat rate is good or not is yet to be determined,” said the 46-year-old, who operates in Kenyalang.

In pointing out that she still had 15 years left on her land lease, she said: “I would have to sit down and do some calculations if I would be paying less with this flat rate or not. Obviously, to the layman, the less they pay, the better.”

For residential properties, the new rates are RM1,000 for a terrace house, RM3,000 (semi-detached) and RM6,000 (detached).

For shophouses, the rates are RM40,000 per unit in Kuching, Sibu, Miri and Bintulu; RM20,000 for Sarikei, Sri Aman, Kapit, Limbang, Mukah, Betong and Samarahan and for rural towns of Lundu, Asajaya, Niah, Marudi and the likes, RM10,000 per unit.

The rates for agriculture land, RM5,000 per acre for town land, RM2,500 per acre for suburban land and RM200 per acre for country land. The new policy will cover renewals for 60 years.

By Vanes Devindran of The Star Newspaper