Premium and Land use in Sarawak

Thomas Sim PEA2066

Q.
a) What are the types of land use in Sarawak? Is it different from West Malaysia?

b) Whereby there is conversion from one use to another, how is it calculated?

c) If the State Authority alienate the land, how is it priced?

A.
a) Yes, it is different from West Malaysia because land matters in Sarawak is regulated by Land Code (Sarawak) (Cap 81), not National Land Code 1965. In Bahasa Malaysia, it is known as "Kanun Tanah Negeri (Bab 81)"

The land use or type of developments are categorized into:

"Commercial, Industrial, Residential, Agriculture, Recreational, Office/Institution"
And,
"Town Land, Suburban Land and Country Land" as 'categories'

Where as under NLC S.52, land use in West Malaysia are "Agriculture, Industrial and Building"
b) Where there arises the variation of use, in such case application to change the type of use the procedure is "Application of Variation of Title Condition" or AVTC.

Assessment of premium is required when Direct Alienation (DA), Re-Alienation, Application for Variation of Title Condition (AVTC), Extension of Term of Title Condition and Alienation to Federal Lands Commissioner (FLC) is involved.

  • Premium is a lump sum tax levied on the land upon direct alienation or when there is a re-alienation of land.
  • Request for assessment is normally received from the Land Branch in the form of a Valuation Request.
  • The amount of premium is derived by applying a standard percentage rate of premium to the market value of the land.
  • The rate to be adopted depends on the title condition and the category of the land.
c) The direct alienation of State Land by the State Authority in Sarawak is based on the percentage of Market Value of the land for its respective use. For agricultural use in country side, it is only RM200 per acre.

1). What is an AVTC?
It is a process whereby a registered proprietor applies to change the usage of the land from one purpose to another. It is also known as land conversion.

2). How to apply ?
A registered proprietor must appoint a qualified consultant who will submit on his/her behalf the proposal to the Superintendent of Land and Survey Department of the Division in which the land is situated for consideration by the government.

3). How much does it cost ?

  • In the event that approval is given, premium is payable based on the difference between the two (2) market values of the land, that is to say, the  current  value of the land with the  existing use and the remaining term of title and that of the proposed use with extended term of sixty (60) years.
  • Other payments are premium (if any), annual rent,  preparation  of title fee and  registration fee and  preparation of instrument fee.
Ref:
Official Website of Land and Survey Department Sarawak at http://www.landsurvey.sarawak.gov.my/modules/web/pages.php?mod=webpage&sub=page&id=230#avtc
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