THE DIFFERING opinions between Chief Minister Chow Kon Yeow and his predecessor, Lim Guan Eng has continued to reverberate over the imposition of a revised quit rent structure in Penang.
Chow has defended the move as the last revision was done some three decades ago, and it is a flexible payment scheme with grounds to appeal or settle via instalments, while Lim, the DAP adviser, has argued that it is excessive and comes during hard times.
Chow said they have been sensitive to the plight of ratepayers, especially those who have appealed and that the decision to offer instalments was made after a meeting with the state land and mines department.
The staggered payment mechanism is part of adding value to the new quit rent structure, which the state has introduced this year - it is fair, transparent and accountable, stressed Chow.
The scope of the instalment plan would be determined by the district land administrator, based on the appeal lodged by the affected landowners.
The instalment plan can take effect if the applicants submit before May 31, this year, whereas for the following years, the appeal must go into effect by April.
"The state is empowered to revise the rates. We hope that all parties can respect it because it has not been revised for the past 30 years," said Chow.
In view of worries over rising living costs, Chow said that the state was prepared for such an impact by allowing rebates to be accorded for up to three years, starting with this year.
As of last Wednesday, Penang has only received 1,025 appeals from landowners, who deemed that the rate was too high for them.
Of that, only 515 appeals were classified as having exorbitant rates compared to the previous years, while others were on the land classification of First Grade, Condition A and B, as well as the changing of the land zone status from county to town.
Chow also clarified that the revision of the quit rent was not entirely driven by the need to increase the state revenue coffers but to correct the imbalances in the land taxation code.
Chow also clarified that the tenants and owners of the low-cost Bola-Bola Flats in Raja Uda in the Bagan parliamentary do not possess their strata titles yet.
Lim countered, stating that Chow is wrong to give the excuse that the 502 per cent increase in quit rent on Bola-Bola Flats is due to the failure to convert the master title to individual strata title for each of the 258 units.
"This is because the master title permits the construction of a low-cost flat, and even when the strata title is issued later, it is still for the use of a low-cost flat. The Certificate of Completion and Compliance signifying completion of the Bola-Bola low-cost flats was issued 15 years ago on January 3, 2011. S
“Subdividing the master title into strata title does not change the use of the land for low-cost flats. There should be no increase in quit rent as promised by the state government for low-cost flats, whether under master title or strata title."
Since the residents moved into Bola-Bola Flats 15 years ago, the flats have remained low-cost and have not been upgraded to a condominium.
There is no reason or basis for the Penang Land & Mines Office to calculate the increase in quit rent from RM3,676 to RM22,120 or by 502%, especially when it is still a low-cost flat for the last 15 years of its existence, said Lim.
The master title of Bola-Bola Flats is freehold, first grade, with nil for land use.
Even though no land use is mentioned, its First Grade status permits the owner to do either commercial, residential, industrial, agricultural or for public purposes.
There should be a new and fair formula that imposes a reasonable quantum of quit rent increase and meets social justice needs, which must include public consultations and feedback before it is implemented, added Lim. - March 14, 2026.
