The Selangor state government is cheating residents of their right to full home ownership by charging exorbitant premiums, the Selangor MCA is claiming.

mca theng book anti ong interview 090408 1 Selangor MCA's public services and complaints department chief Theng Book ( left ) accused state executive councillors - especially those from the DAP - of misleading the public on the state's RM1,000 one-off payment scheme to secure a 99-year lease for residential land titles.

Citing a circular issued by the state Land and Mines Department on June 1 this year, Theng said the RM1,000 payment will be rendered worthless as homeowners will have to pay commercial-scale premiums if they intended to use the title as collateral or transfer it to a third party.

This is because, he said, the RM1,000 lease scheme does not accord full ownership of the property to the resident and the title is no different from a temporary occupation licence (TOL).

"This applies to all in Selangor, to all residential properties. There is no longer any  Chinese or Malay kampung consideration... all will be based on market value," Theng told a press conference today.

Theng Book pointed out that prior to the Pakatan Rakyat takeover of the state government, premiums for residential properties were set at 50 sen per square foot for leases lasting six years or less while that for a full 99-year lease was RM2.50 per square foot, inclusive of full ownership.

He claimed that under the new system introduced in June, premiums for all applications for new leases would follow a new formula that effectively jacks up the premium by up to 10 times.

To illustrate his point, Theng Book gave the example of a 5,000 square-foot plot in Petaling Jaya Old Town, which, he said, would have cost property owners RM12,500 for a 99-year lease under BN’s previous system.

“But with the new formula, the premium has gone up to RM123,750 for 99 years. There is a clause that gives a 30 percent discount to property owners if they pay the premium within six months, but that still means they have to pay over RM80,000 which is far higher than the previous premium,” he said.

The new circular also allegedly states that property owners cannot appeal against the quantum of premium they are required to pay nor can they ask for an extension to the payment period, claimed Theng Book.

Gov't must prove its worth

He also slammed the state government for failing to explain the “real” situation facing homeowners in Selangor, accusing Pakatan of using the RM1,000 scheme as a ploy to shore up support in anticipation of snap general elections.

Theng Book brushed aside the state government’s claims of having strong reserves in the state treasury, saying their insistence on charging such high premiums indicates that there is not much substance to back their claims.

“I think the state government’s over-emphasising  its reserves is a lie. If the reserves are so strong, why not bring down the (land title) premium? The money should be channelled back to the people.

“What they say and do is different. Under the BN, we never took back land where the title had expired, and we allowed them to appeal for extensions for paymenst. They could even pay in instalments, and we would then grant them titles when the payment was done.

“We challenge Menteri Besar Tan Sri Khalid Ibrahim. Waive the premium payment and only charge the people RM1,000 and give them full ownership of the property. If not, it’s no better than a TOL.”

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