Negeri Sembilan will no longer allow locals to occupy government land by giving out Temporary Occupation Licences (TOL) that are renewable annually, in view of the rampant abuse of the permit.

Mentri Besar Datuk Seri Mohamad Hasan said his administration would, from next January, come up with the “rent-lease” concept where these individuals would have to pay more if they had built permanent structures on such land.

“It is very clear that those given TOL are not allowed to build permanent structures or even plant trees on the said land.

“But more than 90% of TOL holders have violated this condition, going against provisions in the National Land Code,” he said after chairing the state exco meeting.

“Under the new concept, we can allow them to occupy the property for up to 20 years.

“But their annual fee will no longer be as low as RM20 the way it is under the current structure,” he said, adding that Negri Sembilan would be the first state to implement the “rent-lease” concept.

Citing an example, Mohamad said TOL holders who had set up commercial businesses on government land, would be required starting next year to pay quit rent at the rate of commercial properties.

“Similarly, those who have planted oil palm will have to pay a quit rent on par with those undertaking commercial agriculture.

“They can continue to occupy the land and harvest the oil palm for years to come, but they will have to pay more as the land will no longer be classified under the TOL category,” he explained.

Mohamad said some TOL holders had built permanent structures such as shops, warehouses and garages, so they too would have to pay more under the new system.

“It will be a win-win situation as they will be able to continue with their businesses without having to worry about being evicted.

“They only have to pay a slightly higher amount in quit rent,” he added.