The Penang government has blamed the National Land Council, chaired by Deputy Prime Minister Muhyiddin Yassin, for its inability to convert leasehold land to freehold status in the state.

Chief Minister Lim Guan Eng said under the National Land Code and Federal Constitution, the state has to seek permission from the National Land Council to convert the status of land.

                                    

"So far, the council has not agreed to the state's application to give freehold status to any leasehold land," he told a press conference today.

"To all owners of residential properties on leasehold land, we have no choice but we will still keep trying (to convert the land to freehold status)," he added.

"If possible, we want all leasehold land to be converted to freehold," he quipped.

He was responding to media reports where residents of 465 households in Bukit Gelugor have asked the state government to help them renew their leasehold land status which would expire in 2052, 39 years from now.

In the reports, Penang Bukit Gelugor Residents Association vice-president M Ganesh lamented that the value of the residents' properties were diminishing by the year.

Ganesh claimed that there are "rumours" that the residents could be homeless as the land had been purportedly sold to a developer for a new development project.

Muhyiddin was reported as saying after chairing the 66th National Land Council in December 2010 that all state governments agreed to the policy that they could approve applications for renewal or extension of leasehold land for a period of not more than 99 years unless the land was required for public purpose.

Don't listen to rumours

In trying to allay the fears of the residents, Lim urged them not to listen to rumours.

He said the National Land Council meets about twice a year and the state would again reapply for the land to be converted to freehold when the council sits at the end of this month.

"We will continue to try and apply for it. We have explained this many times, even before the last general election.

"As much as we want to give freehold status to those with leasehold land, we can't do so as the council refuses to give it.

"But we can still apply. The Bukit Gelugor lease expires in 39 years time. If Pakatan Rakyat is still around,  we will extend the lease," he assured.

Lim said if the residents want to apply for a 99 years lease, they must be willing to pay the premium fee.

"We are a people centric government. Residents need to pay a premium of only 10 percent (for the lease) as we give you a 90 percent discount.

"This policy is already implemented in new villages and kampung," he added.

Earlier, Lim handed over a cheque of RM3,000 to Penang police chief Abdul Rahim Hanafi for the family of KPL Zal-Azri Abd Somad, 31, who was bludgeoned to death in a scuffle with a suspected thief high on drugs in Malacca on Sept 24.

During the press conference, Lim also launched the "10 days, three festivals, all in Penang" event, from Nov 29 to Dec 8.

The annual event includes the Georgetown Literary Festival, The In-Between Arts Festival and Penang Island Jazz Festival, sponsored by the state and Penang Global Tourism.