How is land use and categorised in West Malaysia and Sarawak? How is land premium calculated during alienation?
Town Land, Suburban Land and Country Land as “Categories” in Sarawak
In Sarawak, land is further classified under “Land Use” for ‘Commercial, Industrial, Residential, Agriculture, Recreation and Office/Institution’.
It is simpler in West Malaysia under: Building, Agriculture & Industry as “Category of Land Use”. In such case, when a plot of land is alienated in West Malaysia, it is directly given a “Category of Use”. In Sarawak, it varies from Category and type of Use, so for Sarawak, it is two tiers, first by category, then type of use. May be Sarawak has big land area, so townships can differ quite a lot. Take for example, comparing Kuching to Lundu, land in Kuching (Big town) is much valuable than Lundu (Small town). Type of Use – commercial Use in Kuching differs to a big extend from commercial Use in Lundu.
For alienation and AVTC, different rate of premium is payable for category and types of land use. Of course, Town Land is more expensive than Suburban Land; Suburban Land is more expensive than Country Land. Land Use also play a role. Commercial and Industrial use would cost more than Residential, of course for a obvious reason.
How is premium calculated during alienation?
The direct alienation of State Land by the State Authority in Sarawak is based on the percentage of Market Value of the land for its respective use. For agricultural use in Country Land, it is only RM200 per acre.