Ww STATE PLANNING AUTHORITY ‘MINISTRY OF URBAN DEVELOPMENT AND NATURAL RESOURCES ‘SPA CIRCULAR NO. 6/2018 Revision on Special Terms and Conditions for Industrial Land Alienation of Ministry of Industrial and Entrepreneur Development (MIED) Sarawak’s Industrial EstatesMINISTRY OF URBAN DEVELOPMENT AND NATURAL RESOURCES ‘SEA CIRCULAR NO. 6/2018 Revision on Special Terms and Conditions for industrial Land Altenation of ‘Ministry of Industrial and Entrepreneur Development (MIED) Sarawak’s, Industrial Estates 1. The Siate Govemment had reviewed the existing mechanism and Policy regarding the alienation of industrial land at MIED's Industrial Estates in Sorawak, 2, Based on this review, the special terms and conditions for alienation of industial land have been revised to facittate the development of industial ands by private investors 3. The main objectives of this new policy are fo ensure that the industrial lots which have been alienated would be developed within the specified period to spur the growth of the State economy and prevent land speculation. NEW MECHANISM AND REVISED SPECIAL TERMS AND CONDITIONS FOR ‘ALIENATION OF INDUSTRIAL LAND ‘The new mechanism cnd special terms and conditions are as follows:- 1.0 Detailed buildirg plans to be submitted by investor to MIED upon approval by Industial Coordination Committee (ICC) (before submission fo State Planning Authority (SPA) for consideration) 1.1 Upon approval from ICC, the applicant is required to submit the detailed building plan together with the land appication to MIED, {Refer fo Appencix 1.0) 1.2. The duration of time given by MIED fo applicant for submitting the detailed building plan together wih the land application is two (2) months from the date of the ICC Approval Letter 1.3. The submission of the Detailed Building Plan must be signed by Qualtfied Person (P| registered with the State Planning Authority (SPA} ond must be in accordance with the standard format specified by the SPA. (Refer lo Appendix 2.0)20 30 1.4 Detailed Building Plan to be submitted together with land Glienation at early slage so as fo expediie the overall developrrent process and ensure the applicant's commitment towards completing the project. Investor to pay thirty percent (30%) land premium upon receiving formal approvel from Ministry of Urban Development and Natural Resources withir three (3) month. (Refer fo Appendix 1.0) 2.1. The rate for the fist year installment for the land premium is 30%, The upton! payment is needed to ensure the opplicant's commitment fowards the project's development, 2.2 The payment must be made to the Land and Survey Department within three (3) months from the date of the Formal Approval Letter from MUDENR. 2.3. Failure of the applicant to make payment within the prescribed petiod shall be considered as disagreeing with or rejecting the land offeted, Therefore, the approval of iand alenation will be treated as null and void. Hence, the Land and Survey Deparment Divisional Office shall subsequently sue a ‘withdrawal letter to the applicant concerned. Permission for irvestor to enter the site will be given upon issuance of Fotmal Approvci by SPA. (Refer to Appendix 1.0) 2:1 Permission to enter the site is intended to facilitate and speed up the predevelopment stage such as site inspection, land surveying, and site preliminary work, 3.2 The development/consttuction works and engineering works con only commence after approval has been given to the Building Plan andjor Engineering Plan.40 Shorten the valisty of land offer from 120 days (Basting) to 60 days IReter to Appendix 3.0) 4.1 Action by Ministy of Urban Development and Natural Resources [MUDeNR) 4.1.1. The Ministy will convey the formal Approval Letter to the ‘oppicant which conssts ofthe following: - |. The approval's on alienation of industrial land together with apEroval of ‘Detailed Building Pian’; 30 days duration petiod for ‘allatiee" (applicant) is given for feedback on the acceptance of the offer from the date of formal approval. The aeceptance's form is as in Appendix 40. The feedback must be submitted fo Land and Suvey Department Divisional Office and copy to MUDeNR, MIED ‘and Land and Survey Department Headquarters. If Lond and Survey Depariment Divisional Office does not receive the feedback unill the expiry date of the prescribed petiod, the Government shall regard that the applicant does not agree or reject the land alienation offer Therefore, the approval of land alienation will be treated as null and vold. Hence, the Land and Survey Department Diviional Office shall sue a withdrawal letter 10 the applicant. 20% payment of the premium within 3 months from the formal approval letter of MUDENR as stated in item 2.0 above. 4.2 Action by Cepariment of Land and Survey Headquarters 42.1 Lands and Surveys Depariment Headquarters will sve, memorandum of approval of the special terms and condions to the Divisional Office within 14 days upon receiving @ copy of the formal approval lelter/memorandum from MUDENR. (Refer to Appencix 3.0)43. Action by Divisional Offices of Land and Survey Depariment 43.1 Land and Survey Divisional Office wil issue the approval etter ‘on ferms and conditions and LaS 80 Form fo allottee within 7 days after receiving 30% payment of land premium from the ‘applicant. (Refer fo Appendix 3.0) 43.2 ‘Aloitze" (applicant) is given 30 days from the dale of issuance of LAS 80 to retum the form before the land fille is issued. 50 Standardize land premium incentives at thirty percent (30%) and maintain existing five (6) years instalment. 5.1 The rebate incentive rate was standardized at thity percent (30%) fon ll industrial estates under MIED including Samojaya Free Industral Zone. (Refer fo Appendix 5.0} 5.2 The installment payment of premium for the five (5] years period is os follows: Fist installment 2 30% Secondinstoliment —: 20%, Third instalment 20% Fourth installment 15%, Fifth instalment 198, 5.3. The incentive rebate for fourth and fifth instalment will be given if the building is satislactorly completed (Oecupational Permit (OF) Issued) ond operational (Issued Invoice for production) within 3 years fiom the date of registration of lands lease.60 70 The Government will toke back and enter the land if there is no development! alle 8 years fivin Ihe dale of Isuance of land tiie [registration of end lease). 6.1 The period for developing the land for industrial purpose is three (3) years from the date of the issuance of land lease [registration of land tease). The development as mentioned above means, the building components must be completed and Occupation Permit {OP} has been issued and the project is in operation. The investor would be required fo produce evidence through production of invoices of their businesses. (Refer fo Appendix 5.0) 62 This process wil be monitored by MIED as mentioned in Appendix 60. 63 MIED to report to Land and Survey Department biannually on the progress of development for the isuance of notice to the companies who failed fo developed their land, 6.4 If there is no development done in third year, MIED to report ancl recommend to Land and Survey Department for the undeveloped land to be taken back by the Government. Eighty percent (80%) of land premium paid will be refunded without Inferest for land iaken back by the Government. 7.1. Ifthe project is not implemented, then the Goverment will take back the land ond refund only eighly percent (80%) of land premium paid without interest. (Refer to Appendix 7.0) 7.2 The Land ond Survey Department is responsible for the payment [process afterlandis taken back. [Refer fo Appendix 6.0) DATE OF IMPLEMENTATION This Circuler is 10 take immediate effect trom the date of this memorandum/circula. 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