KUALA LUMPUR: Fifty-three existing tenants — comprising 49 places of worship and four government-aided schools situated on land owned by the Railway Assets Corporation (RAC) — have been granted a special rental rate of RM1 per month, effective October 1, Transport Minister Anthony Loke announced.
The nominal rate applies to places of worship built before 2012, subject to specific eligibility criteria and terms, as part of RAC’s Corporate Social Responsibility (CSR) initiative to support institutions vital to community well-being and societal development.
Under the new arrangement, the tenancy period is set at three years, with options for renewal for two subsequent three-year terms — effectively allowing up to nine years at the same RM1 rate without the need for reapplication at each interval, Loke said.
While the agreement provides up to nine years of continuity, the land remains reserve land and can be reclaimed for government development projects, such as rail infrastructure expansion
“As long as we do not need the land for development, they can stay there with a nominal fee. But if there is a government project — like adding a track — then the land needs to be returned,” Loke said.
He added that previously, tenants were on three-year contracts and had to reapply every time, but the new structure simplifies the process by granting 3+3+3 years upfront, requiring only a fresh agreement signing at each three-year mark rather than a new application.
Loke noted that past rental charges for these tenants were inconsistent, with some paying RM100, others RM150, and no clear standardised basis.
“Now we make it equal — for this category only, that is, houses of worship and also schools. There are 53 in total: 49 houses of worship and four schools. The others are commercial renters and follow market rates,” he said.
He emphasised that the RM1 rate is a CSR measure for non-profit institutions, distinguishing them from RAC’s commercial tenants, which include businesses, banks, and other profit-driven entities that continue to pay commercial rates.
Loke presented notification letters to the tenants at a ceremony at Menara Sentral RAC in Brickfields alongside the ministry’s secretary-general, RAC Board of Directors Chairman Datuk Seri Jana Santhiran Muniayan, and RAC Chief Executive Officer Datuk Azhar Ahmad
“This is to provide relief and ease to the local communities. For nine years, they do not have to reapply — they just keep paying the nominal rate and sign a fresh agreement after three years,” Loke said.
