What revenue is the state government losing from illegal land use?

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State Revenue Losses Stemming from Unauthorised Land Use Identified

The state government is experiencing revenue leakage from various sources due to the illegal occupation and use of government land. This loss encompasses land premiums, land taxes, development fees, and associated licensing charges that would otherwise be collected. The scale of this financial impact is significant, affecting the state's ability to generate income from its land assets.
Demolition of Factories Operating on Government Land

This year, a total of 72 factories found to be operating on government land without authorisation have been demolished. This enforcement action targets land use that contravenes stipulated conditions, encroachment onto state property, or the establishment of unauthorised factories, often referred to as KTK. These demolitions are carried out after a thorough notice process, review of land status, and coordination among relevant agencies, with considerations for security, asset transfer, traffic control, and waste management.
Geographic Concentration of Demolitions

The majority of these demolitions occurred within specific administrative jurisdictions. A substantial 53 factories were dismantled within the areas overseen by the Shah Alam City Council (MBSA) and the Petaling District and Land Office. An additional 19 factories were removed through a special operation conducted under the purview of the Royal Klang City Council (MDBK) and the Klang District and Land Office (PDT).
Broader Implications of Unauthorised Land Use

Beyond direct revenue loss, the state government highlights that unauthorised land use presents a multifaceted challenge. Issues such as structural and fire safety risks, environmental pollution, traffic congestion, disruption to residential areas, irregular utility usage, and development that deviates from local authority planning are all consequences of such activities. While enforcement actions like Op Rata may impact premises owners, entrepreneurs, and workers, these must be balanced against the broader implications for the state and the community.

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What revenue is the state government losing from illegal land use?

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