This whole business of converting leasehold land to freehold appears to have been done without considering the long-term implications.
I know the state government, faced with budgetary constraints, is hoping to raise funds from land conversion. But has it considered the impact on the future price of land in Penang, which could put it beyond the reach of the lower-income group, and the future needs of the state for public land to build vital infrastructure and amenities? There is a good reason for some land to be classified as leasehold in the first place – though leasehold property owners may disagree.
Now, the Queensbay project, for which the land conversion was done under the previous administration and defended by the present administration, is embroiled in controversy. Senior conveyancing lawyer Agatha Foo is quoted in theSun as pointing out a provision in the National Land Code which expressly prohibits the state from disposing “any part of the foreshore or sea-bed for a period exceeding 99 years”. Land commentator Prof Salleh Buang agrees: “The law says it very clearly. It is on record that you cannot make such land freehold.”
