KUALA LUMPUR: Places of worship and government-aided schools located on Railway Assets Corporation (RAC) land will now pay just RM1 a month in rent under a new government initiative.
The special rate, effective Oct 1, covers 53 existing tenants – 49 places of worship and four schools.
These places of worship are required to have been built before 2012, subject to other criteria and terms.
Transport Minister Anthony Loke, who announced the new arrangement yesterday, said the tenancy period is set at three years, with options for renewal for two subsequent three-year terms.
This effectively allows up to nine years at the same RM1 rate without the need for reapplication at each interval.
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, he said.
However, Loke said the land remains reserved 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,” he said.
He added that the RM1 rate is a corporate social responsibility measure for non-profit institutions, distinguishing them from RAC’s commercial tenants who pay commercial rates.
Yesterday, Loke presented notification letters to tenants at a ceremony at Menara Sentral RAC here.
“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,” he said.
On the suspension of two agents of the MyEG Group for not remitting RM314mil collected from traffic summonses and renewals of road tax and driving licence to the government, Loke said the suspension would continue until the payment is made.
“We stand by what we have said as we are expecting the payment. Before any application for the operations to resume, there must be settlement of the payment,” he said.
The Road Transport Department had previously announced that the two collection agents had been suspended since Oct 5.
