What are the reasons for the delay in finalizing highway land leases?

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Reasons for Delayed Highway Land Lease Finalisation Identified

A significant number of highway concessionaire companies in Peninsular Malaysia, specifically 96 administrative offices, have not yet finalised land lease agreements with the government. These offices have been in occupation for periods ranging from one to 26 years, leading to an uncollected lease rental revenue of RM96,000. The responsibility for this leasing process, involving 27 concessionaire companies managing 33 highways, falls under the purview of the Ministry of Works (KKR) and the Department of the Director General of Lands and Mines (JKPTG).
Land Ownership Process Delays

A primary reason for the protracted finalisation of land lease agreements is the ongoing land ownership process. Records indicate that 25 applications related to land ownership are currently being processed, involving both the Malaysian Highway Authority (LLM) and the KKR. Further complicating matters, eight of these applications remain under review at the KKR and JKPTG levels, indicating a bottleneck in the administrative workflow.
Outstanding Notices and Unfinalised Agreements

The delay is further exacerbated by the procedural stages required before lease agreements can be formally executed. A substantial 33 offices have not yet received a Form 5A Notice from their respective District and Land Offices, a critical step in the land leasing procedure. Additionally, 17 offices have completed the necessary Form 5A payments but have seen their lease agreements remain unfinalised since as far back as 2004, highlighting a prolonged administrative inertia.
Absence of Lease Clauses in Concession Agreements

In some instances, the absence of a lease clause within the original concession agreements themselves has prevented the imposition of lease rentals. This is notably the case for six administrative offices operating under the Shah Alam Expressway (Kesas). Without a contractual basis for lease charges, the government is unable to collect rental revenue from these specific premises, despite their occupation.

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What are the reasons for the delay in finalizing highway land leases?

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