CM: Land sale profit makes up 3% of state’s revenue - Nation | The Star Online
X Close

ADVERTISEMENT

CM: Land sale profit makes up 3% of state’s revenue


GEORGE TOWN: Chief Minister Lim Guan Eng (pic) has dismissed allegations by certain individuals that the state’s profit or its Budget surpluses came from the sale of land.

“The premium obtained from the sale of land from 2008 to 2015 was about RM657.6mil.

“However, the state used RM500mil to build low-cost, low medium-cost, public and affordable housing, leaving only about RM157.6mil.

“The state obtained a total revenue of about RM4.94bil from 2008 to 2015,” he told a press conference at the Tech Dome Penang in Komtar yesterday.

Lim added that the gross revenue of RM157.6mil obtained from the sale of land was only 3.18% of the state’s total revenue.

“So, how can these people claim that the state’s profit or its Budget surpluses came from the sale of land?

“The gross revenue of RM157.6mil must be used in the calculation and not RM657.6mil because of the RM500mil used to build low-cost, low medium-cost, public and affordable housing,” he said.

On a separate matter, Lim explained that the word ‘premium’ was not only confined to the sale of land.

“Premium also covers conversion of land use, for example, from agriculture to commercial and agriculture to residential. However, the land still belongs to the owner.

“Another example of premium paid is for the extension of a lease,” he said.

ADVERTISEMENT