KUALA LUMPUR, Oct 7 (Bernama) -- A special rental rate of RM1 a month has been set for places of worship and capital-aided schools occupying reserve land under the Railway Assets Corporation (RAC), effective Oct 1.
Transport Minister Anthony Loke said the standardised rate replaced the various rental rates previously imposed, benefiting 53 existing tenants comprising 49 places of worship and four schools.
He said the measure was introduced under RAC’s corporate social responsibility (CSR) programme, as the places of worship and schools are non-profit institutions.
“Previously, there was no clear policy. Although nominal rates were charged, they were not based on market rates, with some tenants paying RM100 and others RM150. So now we have standardised the rate for these categories only, namely places of worship and schools,” he told a press conference at Menara RAC here today.
He said the RM1 monthly rate, rather than allowing the tenants to occupy the land rent-free, was intended to ensure that the places of worship and schools remained lawful tenants while providing them with greater certainty and protection.
However, he said the special rate did not apply to RAC land tenants engaged in commercial or business activities, such as vehicle workshops, who would continue to be charged commercial rental rates.
On the terms of the tenancy agreement, Loke said the initial rental period would be three years, with two options to extend it for a further three years each (3+3+3), allowing tenants to enjoy the RM1 monthly rate for a maximum of nine years.
He said previously, tenants had to submit a new application every three years, but under the new arrangement, they would no longer need to reapply during the nine-year period and would only need to sign a new agreement every three years.
“So for nine years, they do not need to reapply. If nothing happens and the land is not required to be returned to the government, they can remain there and continue paying the nominal rate,” he said.
However, Loke reminded that the land would remain railway reserve land and would have to be surrendered if required by the government for strategic development purposes, such as the construction of additional railway tracks.
Meanwhile, Transport Ministry secretary-general Datuk Seri M. Jana Santhiran, who is also RAC board chairman, said the decision was made after RAC reviewed issues raised by the management of places of worship and capital-aided schools over the past two to three years.
-- BERNAMA