Lease extension will have to surrender 20% of land

kolamazu — Thu, 19 Sep 2024 09:19:47 +0800

https://www.malaysiakini.com/columns/698505

TLDR:
- Leasehold non Bumi land owners nationwide upon renewal or lease extension will have to surrender 20% of land to Bumiputra Land Corporation before approval
- Applicable to all agricultural land of 50 acres and above and industrial / commercial land of 20 acres and above

Content:
Anwar Approved Zahid's Proposal of setting up Bumiputra Land Corporation at Bumiputra Economic Convention that all leasehold non Bumi land owners nationwide upon renewal or lease extension will have to surrender 20% of land to Bumiputra Land Corporation before approval . Applicable to all agricultural land of 50 acres and above and industrial / commercial land of 20 acres and above . Will hit major China men companies which own huge tracts of land banks..

Anwar quietly approved this proposal to rob off the wealth of the hard working citizen especially the Chinese to be given freely to Bumi*

Zahid's land corporation proposal is insidious, unfeasible.

P Gunasegaram in Malaysiakini - Mar 7, 2024
https://www.malaysiakini.com/columns/698505

COMMENT | One proposal announced by no less than Deputy Prime Minister Ahmad Zahid Hamidi went relatively unnoticed at the recently concluded Bumiputera Economic Congress (BEC), where a slew of proposals for helping well-off bumiputera was unveiled.

It could be the most insidious and the one that is most patently unfair to other Malaysian citizens from whom part of their land would be taken away upon the renewal or even extension of leases.

According to Zahid, who is also the rural and regional development minister, the government plans to set up a Bumiputera Land Corporation (Perbadanan Tanah Bumiputera) to preserve land ownership, as part of an effort to strengthen the community by boosting its land ownership.

According to a report quoting Zahid, if the lease size exceeds 50 acres (20.23ha) for agricultural land or 20 acres for industrial use, the proposal calls for 20 percent of the land to be handed back to the government upon lease renewal or extension.

“The creation of a Bumiputera Land Corporation would signify a proactive measure aimed at ensuring a balanced racial demographic, sustaining bumiputera businesses in agriculture, industry, and new settlements, and preserving bumiputera ownership,” he said.

Zahid envisaged that the returned portion of land would be then overseen by the corporation.

“I am confident that this initiative holds the potential to yield substantial returns and significant opportunities for bumiputera to possess a stake in the nation's land assets,” he added.

Tremendous implications

One hopes that this badly conceived scheme is still at the proposal stage and will not see the light of day. The implications are tremendous. Note that all agricultural land above 50 acres will come under this and 20 acres for industrial land.

If you had a small plantation of 50 acres growing oil palm for instance, and if you were non-bumiputera (I’m assuming this stipulation does not apply to bumiputera companies) you have to give up 10 acres upon lease renewal or even a mere extension.

That means you will lose too the yearly output that you get because the area planted will be reduced by 10 acres. The amount of fresh fruit bunches decreases by 20 percent and so will your revenue. Profit may decrease even more than that because of loss of economies of scale.

Let’s say down the road you have an oil palm mill, logistics centre and office premises amounting to 20 acres, you suddenly have to carve out four acres for allocation to the Bumiputera Land Corporation.

Presumably, the corporation will hand it over to a privileged bumiputera who can then sell it back to the original lessor for a huge premium. What a quick and easy way to make money and for the government to hand out patronage to its own people.

It beats even approved permits and rivals that infamous 30 percent bumiputera equity stipulation.

Something like this could only have been conceived by an Umno minister who will have the necessary audacity, the sense of entitlement and the complete lack of ethical behaviour to suggest such a one-sided deal.

Imagine the kind of havoc it will cause - factories, offices, plantations, food production etc. Right now, almost all leases are automatically renewed on the payment of a premium and business continuity is assured.

Let’s take Malaysia’s largest plantation - Sime Darby - which has an estimated planted acreage of 730,000 acres in Malaysia. Sime Darby may not be considered a bumiputera company because of its diverse shareholders.

That would mean that it will eventually have to give up 20 percent of its plantations in Malaysia or 146,000 acres. Using a very conservative estimate of RM10,000 per acre, that alone is worth RM1.46 billion. Potentially, billions of ringgit of properties are involved across all businesses.

The result of this ill-considered move to surrender 20 percent of larger tracts of land upon lease renewal or extension is a huge business disruption and the abuse of allocation of land to privileged bumiputera, two things we really don’t need.

Unless strictly necessary, leases are not normally terminated or withdrawn. This practice ensures fairness to all landowners and assurance that businesses of all kinds have reasonable certainty that they can operate in a system which is fair, equitable and reasonable.

Why, the move could be even against the Federal Constitution that stipulates that everyone is treated equally under the law. It implies that people cannot have their property taken away through any process and then redistributed to others.

Zahid’s proposal should be nixed in the bud forthwith before it becomes a needless contentious and divisive issue.

P GUNASEGARAM says proposals should be vetted for fairness and feasibility before they are made public.

Is redeeming a property loan a right thing to do

kolamazu — Fri, 25 Feb 2022 17:27:43 +0800

Recently I have top up one of my loan property till almost cleared. Then was told by bank that it will trigger auto redemption, and will need to engage lawyer for redemption process. (Price wise unsure - hoping for some answer)

Rather than redeeming the property, would it be better to re-finance, perhaps one day sell off the property with redemption being paid in the same transaction is better?

any advise?

Sudah TurBO-ed 500 Mbps Unifi

kolamazu — Mon, 27 Aug 2018 15:28:52 +0800

Got TurBO-ed by Unifi semalam...
Did a speed test

Wireless - Download hovering around 17-18 Mbps

LAN - Download hovering around 65-67 Mbps

500 Mbps tak dapat dinikmati? anyone any advise?
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No GST from 1 June 2018 and SST too

kolamazu — Mon, 21 May 2018 13:52:21 +0800

Sorry if this is a re-post, but as per announcement and many had follow to remove 6% GST prior to 1 June. However, to implement back SST it will take a mammoth effort, which means it is not achievable within a short time line. I saw Daim in one of the news, mentioned, SST will be re-implement in min 2-3 months.

Which means Rakyat enjoy tax haven for 2-3 months? if this is the case, also very clever... this is to stimulate Malaysia economy. Many ppl whom are holding back expense to purchase something will then spend during these tax haven period.

Ini betul ka?

What happen to MARA OZ purchase?

kolamazu — Thu, 30 Jul 2015 10:54:49 +0800

So MARA OZ kick back deal? now being covered already by Mooheedin...1MDB ... and MH370?
Anyone got latest?

Need update, did Tabung Haji sell off the TRX land

kolamazu — Thu, 25 Jun 2015 15:36:50 +0800

Following up.... did Tabung Haji disposed of the expensive TRX land?
ada sos to follow up ka?

Can we volunteer for JAIS / JAKIM

kolamazu — Thu, 15 Jan 2015 14:06:34 +0800

I think it's good if JAIS / JAKIM can come out with a smartphone apps, we (Non-muslim) can volunteer to take photos and upload to you guys for further investigation... if see any...

It's a win win situation, we are very willing to help and your faith will be safe.

Guess what ridiculous NEWS/Policy will be announce

kolamazu — Mon, 05 Jan 2015 11:15:49 +0800

awaiting these few days for either ministers or employed NGO to make RIDICULOUS statement/proposed policy to create Hoo Haaa.... diverting attention of Malaysians away from:
- Government AirPlane fly itself
- Comedy support letter for Phua
- No darurat call for Flood...
- More seats for Sarawak
- Ringgit Shrinking...

tunggu

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