(Eastern Times; May 26, 2007)

By Norni Mahadi

MIRI: Sarawak Government has formulated the new policy on extension of term and renewal of land titles and the implementation is on immediate effect.

It was following with the announcement made by Minister of Planning and Resource Management II cum the Minister of Public Utilities, Dato Sri HajiAwang Tengah Ali Hassan in a press conference after officiated at Electronic Bills Presentment and Payment (EBPP) at Boulevard Shopping Complex today.

Dato Sri Haji Awang Tengah making the announcement on behalf of Chief Minister Pehin Sri Haji Abdul Taib Mahmud.

It is in view of the subject matter regarding extension of term and renewal of titles has been a hot issue frequently discussed as land is a subject that is close to the heart of the people.

"The Government is always concerned and sensitive in handling issue that affects the welfare of the people including the issue of extension of term of title. Because of this, the policy has been re-examined taking intoconsideration the implication and impact it has on the people, social needs, the standard of living and needs of the low income group," he stated.

As a caring Government he pointed, decision has been made to improve the existing policy regarding extension of term.

Based on Land & Survey Department's statistic as at 8th May 2007, there are a total of 523,452 land titles throughout the Sarawak.

From the total number, 37,331 titles or only 7 percent will expire by 2015 and 31,482 out of the 37,331 fall within the category of Country Land for agriculture where the Government had already fixed the premium for extension at RM200 per acre.

While from 3,448 titles will be expire by year 2009, the department only received 2,685 applications for extension of term of which 2,408 or 90 percent had been approved.

Referring to the statistic, Tengah felt it is clear that extension of term and renewal of titles actually is not a big issue as manipulated by certain parties.

However, Government he added will not neglect the issue and has taken steps to improve the existing policy comprise the rates of premium to be charged, landowners can apply for extension anytime before expiry and term of leases.

Under the subject Rate of Premium to be charged for Extension of Terms of Title for 60 years is divided into three categories of land such as Town Land, Suburban Land and Country Land. The land will be divided into 6 categories of uses such as commercial, industry, office or institution, recreation, residential and agriculture.

For residential use, the Minister shall decide on the amount of premium payable for special cases involving the low income group or those living below the poverty line based on merit on each case.

The ceiling rates of premium of RM10,000 per acre for agriculture town land and RM5,000 per acre for agriculture suburban land is applicable to agricultural land which has been fully utilized for agriculture activity.

While, the percentage charge is based on the land market value and does not includes any improvement on the land.

On the extension of term, the application will only be processed by the Land and Survey Department five years before the expiry of term.

But now, the Government has decided to allow application for extension to be made at anytime before the terms expire subject to the fulfillment of the criteria. The criteria comprise the land is not required by the Government for development purposes, the development on the land does not contravene the title condition and the land is developed or utilized.

While for the Term of Title, the Government has decided to allow the terms

of title to be extended to 60 years or 99 years. Besides, the applicants who chose to extend their terms of title to 99 years will be charged an additional premium of 30 percent.

Tengah reiterated that the new policy was approved by the Government after considering various public opinions and reaction and also plus some studies on the practices in the other States of Malaysia.

"The Government is of the opinion that the approved premium rates are reasonable, fair and will not burden landowners especially for residential and agriculture lands," he remarked.

The needs of proprietors of residential lands he said shall be given due attention, whereby low income groups and those living below poverty lines will be charged lower than normal premiums at a rate to be decided by the Minister based on the merits of each case.

At the same time, proprietors of developed agriculture lands will be charged with reasonable premiums.

This will encourage agriculture lands to be fully optimized so that it benefits the proprietors and thus contributes to the economic growth of the State.

In other countries like Australia, the Government does not guarantee that leases for agricultural land will be extended or renewed when the leases expire.

The Australian's Government considered the agriculture land is their future land bank for government development either for city or town expansion and infrastructure development. While, in deciding on policies concerning the extension of terms of titles, the Government does not disregard its own interest.

The decision to fix the new rates of premium will give an impact to the State's revenue. As an example, the rate of premium for the extension of terms of title for residential purposes has been reduced from the original rates of 25 percent - 50 percent to a flat rate of 25 percent only.

The premium rate for commercial purposes is reduced from the original rates of 25 percent-61 percent to a new rate of 25 percent-40 percent.

Whereas for agriculture land categorized a Town Land and Suburdan Lands, the rate of premium at 25 percent is maintained but, if the lands in these 2 categories are utilized, then a premium not exceeding of RM10,000 per acre and RM5,000 per acre for Town Land and Suburban Land respectively will be charged.

The Government through the Land and Survey Department has conducted studies and comparison for rates of premium for the extension of terms of title and annual land rent against a few States in West Malaysia.

"Overall, the rates of premium for extension of term of title that I have just announced are reasonable. For your information, the annual land rent imposed in those States studies is far higher than the rates imposed in Sarawak," he remarked.

The formulation of policy on the premium of extension of term of titles he stresses seeks to balance the needs of the public and the interest of the Government.

The State Government he told is also sensitive and does not disregard problems faced by landowners who may not be able to pay premiums in one lump sum. Therefore, the Government is allowing the payment of premium by annual installment not exceeding 10 years.

With this policy of paying, Sarawak is the first in the country of allowing its payers to make installments payment.

In view of that, he is very confident with the new policy which he described reasonable and will be well received by all interested parties.

Later replying to a question on the revenue impact prior to the new policy, he admitted that the new policy will affect the government revenue.

They expected to get a reduction of RM8 to RM10 million by end of this year compared to last year with total revenue of RM233, 168,921 from taxes collection and premium.

Also present in the function were Assistant Minister of Infrastructure Development and Communication Lee Kim Shin, Lambir Assemblyman Aidan Wing, Pujut Assemblyman Andy Chia, Telang Usan Assemblyman Lihan Jok, Bekenu Assemblywoman Rosey Yunus and the Director of Land and Survey Sarawak, Sudarsono Osman.