Malaysia: Developers to pay when reclaiming Iskandar land

zazali musa The Star 6 Jul 14;

JOHOR BARU: Property developers involved in land reclamation activities within Iskandar Malaysia have to contribute 30 sen for each square foot of reclaimed land.

Mentri Besar Datuk Mohamed Khaled Nordin said the new ruling would take effect immediately for ongoing reclamation works, completed projects on reclaimed land and new projects.

“The money collected from them will be channelled into a Fishermen’s Fund to assist fishermen in south Johor whose livelihood is affected by land reclamation,” he told reporters yesterday.

Mohamed Khaled said about 3,237.48ha of land would be reclaimed within the country’s first economic growth corridor under its Comprehensive Development Plan from 2006 to 2025.

“Based on our estimation, the state government will be able to collect RM104mil from developers whose projects are sited on reclaimed land,” he said, adding that the state government would not give approval to developers who declined to contribute to the fund.

Mohamed Khaled said the fund, which would be managed by the state financial officer, was only for eligible fishermen.

Similarly, he said another fund would be set up for Pengerang residents involved in the multi-billion Pengerang Integrated Petroleum Complex in Kota Tinggi.

Separately, he said Johor had submitted its proposal to the Federal Government to impose a levy on Singaporean cars entering Malaysia about six months ago.

Mohamed Khaled said Johor had proposed a RM20 levy on Singaporean cars, of which RM5 would go to the state and the money could be used to maintain roads.

“We leave it to the Federal Government as it is their prerogative,” he said.

Fund for Iskandar fishermen
Rizalman Hammim New Straits Times 6 Jul 14;

JOHOR BARU: DEVELOPERS undertaking reclamation work along the seafront in Iskandar Malaysia will have to contribute 30 sen for each square foot of land reclaimed, to a fund set up by the state.

Johor Menteri Besar Datuk Seri Mohamed Khaled Nordin said the contribution would be used to help fishermen whose livelihood had been affected by the reclamation.

He said the decision, which was reached at a recent state executive council meeting, would take effect immediately.

“Developers will have to contribute 30 sen for each square foot of land they reclaim.

“The payment must be made before they start the reclamation projects. The payment system will be retrospective and will include projects already undertaken.”

He said the decision was made following complaints from fishermen in Iskandar Malaysia that the reclamation projects had affected their livelihood.

“There are 3,237.5ha of reclamation projects approved for Iskandar Malaysia, which means that the state government can collect RM104 million for the fund.

“The affected fishermen will receive cash assistance from the fund annually beginning next year and the amount that they will receive will be announced during the state budget presentation,” said Khaled, adding that the fund would be managed by the state financial officer.

The state government has already directed the Land Office to issue letters to the developers.

Khaled was speaking to the media after chairing the state Umno liaison committee meeting here yesterday.

He said the state government was also looking at several options to help those affected by the Pengerang Integrated Petroleum Complex (PIPC).

“There are several suggestions and we are studying the best mechanism to help those affected.”

The residents of six villages affected by the project will be relocated to new settlement areas under Phase 1 of the PIPC.

The villages involved are Kampung Sungai Kapal, Kampung Langkah Baik, Kampung Teluk Empang, Kampung Jawa, Kampung Batu Mas and Kampung Sebong.

The PIPC is set to become the region’s oil and gas (O&G) hub and promises to provide some 70,000 jobs to locals.

It aims to attract RM170 billion in investments in the next 10 to 15 years. It is also home to Petroliam Nasional Bhd’s (Petronas) RM89 billion Refinery and Petrochemical Integrated Development (Rapid), which will spearhead the country’s and the region’s O&G hub aspiration.

On another matter, Khaled said the state government was studying the possibility of allowing property developers to pay the necessary fees they were required to pay the state government in kind, namely by giving commercial lots that they are developing to the state government, instead of paying in cash.

“We will award these commercial lots to Bumiputera entrepreneurs as it will boost Bumiputera ownership of commercial properties in the new development areas. At the moment, most Bumiputera entrepreneurs can’t afford to own commercial properties. This is one of the ways the state government is helping them.”

On the state government’s proposal to impose a levy on Singapore-registered vehicles entering Johor, Khaled said he was waiting for a decision from the Federal Government.

“I hope the Federal government will understand the need to expedite the decision,” said Khaled.

Singapore had recently expressed concern over the massive reclamation works in Johor to build a man-made island in the Straits of Johor, near the Second Link off Tuas.

It is concerned about the potential transboundary effects of the project called Forest City, which involves several connected islands with a total land size of about 2,000ha.

The Department of Environment had issued a temporary stop-work order against all coastal land reclamation works for the project following a decision to study in greater detail the environmental impact of the project.

The project is being jointly developed by Chinese property developer Country Garden Holdings and Kumpulan Prasarana Rakyat Johor.


Special fund for fishermen affected by Iskandar Malaysia: Khaled
Rizalman Hammim New Straits Times 5 Jul 14;

JOHOR BARU: The state government will set up a special fund to help fishermen who are affected by the reclamation projects in Iskandar Malaysia.

Menteri Besar Datuk Seri Mohamed Khaled Nordin said the decision was made at a recent Exco meeting and all developers who undertake reclamation projects in the area will contribute to the fund.

"The developers will have to contribute 30 sen for each square foot of land that they reclaim. The payment must be made before they start the reclamation projects and we will collect the payment retrospectively," said Khaled.

He said the decision was made following complaints from fishermen in Iskandar Malaysia who said that the reclamation projects have affected their livelihood.

"There are almost 8,000 acres (3,237.5 hectares) of reclamation projects that have been approved in Iskandar Malaysia, which means that the state government can collect about RM104 million for the fund.

"The affected fishermen will received the cash assistance from the fund annually starting next year and the amount that they will receive will be announced during the state budget announcement," said Khaled, adding that the fund will be managed by the state financial officer.

The menteri besar was speaking to the media after chairing the state Umno liaison committee meeting.

Johor to impose 30 sen payment for every sq ft of sea reclamation
The Star 6 Jul 14;

JOHOR BARU: Johor will impose a payment of 30 sen for every sq ft on developers involved in sea reclamation works in the state with immediate effect.

Johor Mentri Besar Datuk Seri Mohamed Khaled Nordin said the approach, to be enforced immediately, aimed at creating a special aid to assist fishermen whose livelihood was affected by the reclamation works.

"With a total acreage of 3,237.48 hectares in reclamation activities in and around Iskandar Malaysia, a total of RM104mil is expected to be received.

"The state government has directed the Land Office to issue letters to developers and it will take effect immediately.

“The payment system made will be retrospective, including for projects that are already undertaken," he told a news conference after chairing the Johor Umno Liasion Body meeting Sunday.

However, he said the actual number of aid to be channelled to the fishermen would be decided and announced during the budget presentation this November.

Mohamed Khaled said the state government was aware and took seriously the issue of the fishermen whose livelihood was affected by the sea reclamation works in several areas in the Iskandar Malaysia development region.

He said Johor also set up an international zone as a centralised area for foreigners interested to reside in the state.

The international zone enables the state government to limit property purchase by foreigners outside the zone that could not be fully controlled previously.

With the existence of the zone, the difference in the rate of taxes will be collected by the local authorities to be used to develop areas outside Johor Baru district. - Bernama

Johor to tax developers for sea reclamation
Today Online 7 Jul 14;

KUALA LUMPUR — Developers involved in sea reclamation work in the Malaysian state of Johor will have to pay a RM0.30 (S$0.12) tax for every square foot as part of a special aid programme for fishermen whose livelihoods are affected by the work, the state’s Chief Minister Mohamed Khaled Nordin said yesterday.

Mr Mohamed Khaled said the state expected to collect RM104 million from a total acreage of 3,237.48ha of reclamation activities in and around the Iskandar special economic region that would come under the payment scheme, The Star reported.

Developers would be receiving letters informing them of the move, which takes effect immediately, he said.

Noting that the state government was serious about the issue of fishermen affected by the sea reclamation work, he said the amount of aid to be disbursed to the fishermen would be decided and announced at a budget meeting in November.

Mr Mohamed Khaled also said Johor would set up an international zone designated for foreigners interested in residing in the state.

The zone would allow the state government to limit property purchases by foreigners and the special taxes collected in the zone would be allocated towards the development of other areas outside the Johor Baru district, he added.

A massive reclamation project in Johor recently came under scrutiny both within the state and in neighbouring Singapore after the Republic and non-governmental organisations raised concerns over the environmental impact of the project.

The Forest City project, a housing development in the Straits of Johor near Singapore’s Second Link, involves creating a 1,817ha island almost three times the size of Ang Mo Kio and includes a 49ha tourist hub as well as luxury homes.

Singapore had earlier expressed concerns about the possible transboundary impact of the reclamation work in the Strait and requested more information from Malaysia so that it would be able to undertake a study on the impact of the reclamation work.

Malaysian media reports later said several amendments were expected to be made to the project to minimise the environmental impact. AGENCIES