Johor to tax developers for sea reclamation

KUALA LUMPUR — Developers involved in sea reclamation work in the Malaysian state of Johor will have to pay a RM0.30 (S$0.12) tax for every square foot as part of a special aid programme for fishermen whose livelihoods are affected by the work, the state’s Chief Minister Mohamed Khaled Nordin said yesterday.

Mr Mohamed Khaled said the state expected to collect RM104 million from a total acreage of 3,237.48ha of reclamation activities in and around the Iskandar special economic region that would come under the payment scheme, The Star reported.

Developers would be receiving letters informing them of the move, which takes effect immediately, he said.

Noting that the state government was serious about the issue of fishermen affected by the sea reclamation work, he said the amount of aid to be disbursed to the fishermen would be decided and announced at a budget meeting in November.

Mr Mohamed Khaled also said Johor would set up an international zone designated for foreigners interested in residing in the state.

The zone would allow the state government to limit property purchases by foreigners and the special taxes collected in the zone would be allocated towards the development of other areas outside the Johor Baru district, he added.

A massive reclamation project in Johor recently came under scrutiny both within the state and in neighbouring Singapore after the Republic and non-governmental organisations raised concerns over the environmental impact of the project.

The Forest City project, a housing development in the Straits of Johor near Singapore’s Second Link, involves creating a 1,817ha island almost three times the size of Ang Mo Kio and includes a 49ha tourist hub as well as luxury homes.

Singapore had earlier expressed concerns about the possible transboundary impact of the reclamation work in the Strait and requested more information from Malaysia so that it would be able to undertake a study on the impact of the reclamation work.

Malaysian media reports later said several amendments were expected to be made to the project to minimise the environmental impact. AGENCIES