We have prepared a joint memorandum to call on the Pahang state government to provide a rent-free period for 3 years for Cameron Highlands’s farmers. The government also urged to consider reviewing the rent and terms of Cameron Highlands’ agricultural land lease in order to reduce the burden of farmers in order to combat Covid-19 and the economy crisis.
On January 30, 2020, Pahang Chief Minister Dato’ Sri Wan Rosdy bin Wan Ismail announced that a total of 1018 vegetable farmers in Cameron Highlands who have been operating on land with Temporary Operating License (TOL) status will be offered to continue their farming activities through a registered rental arrangement. The total size of land involved is 5,526,219 hectares. Since end of February 2020, offers letters of land lease for Cameron Highlands’ agricultural land issued by Pahang Corporation Sdn. Bhd (PCSB) were distributed in stages to TOL farmers.
After studying thoroughly the terms stipulated in the contract and listening to the opinions of Cameron Highlands’ farmers and farmers’ associations, we have prepared a joint memorandum to urge Pahang state government to review the rent and terms of Cameron Highlands’ agricultural land lease.
One of the most surprising changes is the huge rent increase. Based on the offer letter, the latest annual rent is RM4,500 per acre. This would mean that the rent has skyrocketed from the previous TOL fee and water bill that cost only RM884, with an increase of almost 500%!
The Pahang state government’s decision is like killing the goose that lays the golden eggs as the burden of farmers will be increased tremendously. In the short run, the Pahang state government will be able to obtain its biggest gains from the farmers, yet the long-term repercussions to Cameron Highlands’ farmers as well as to the whole Cameron Highlands agricultural sector will be devastating. The agricultural sector in Cameron Highlands that produces highland vegetables and flowers would eventually be destroyed as a result.
When comparing it with the rent for agricultural land in other Pahang districts, namely RM 24 (annual rent) per acre for oil palm estate and RM 8 (annual rent) per acre for fruit farms, Cameron Highlands’ agricultural land rent is exorbitant and could even be regarded as the highest rent for agricultural land in Malaysia.
Apart from that, the 3 + 2 years lease term is too short and could not provide sufficient level of land security for the farmers. Before lease is introduced, most Cameron Highlands’ farmers are only given Temporary Operating Licenses (TOLs) that are effective for one year and have to be renewed annually at the District and Land Office. Although the 3-year lease is a slight improvement, a short lease term could hardly provide assurance to farmers to continue farming and to adopt agricultural modernisation and transformation.
As Malaysia is implementing Movement Control Order (MCO) in order to combat Covid-19, many economic sectors have been suffering from huge losses. The agricultural sector as part of the economy did not escape from the negative repercussions. Therefore, we believe that the government must act swiftly and directly by implementing both short-term and long-term measures to support the agricultural sector. Among all, the most effective measure would be to provide space to farmers via relaxing land policy.
We have therefore prepared the joint memorandum to call on the Pahang state government to provide a rent-free period for 3 years.
The government should also consider reviewing the rent and terms of Cameron Highlands’ agricultural land lease in order to reduce the burden of farmers, to support Cameron Highlands’ agricultural sector as well as to promote gradual agricultural transformation and upgrading. This will help improve collaboration between the government and the agricultural sector to ensure adequate food supply in the market while guaranteeing the benefits of consumers as well as food security.
Pahang Pakatan Harapan State Assembly Members consist of:-
- Lee Chin Chen, SA for Bilut
- Young Syefura Binti Othman, SA for Ketari
- Kamache A/P A Doray Rajoo, SA for Sabai
- Leong Yu Man, SA for Triang
- Chow Yu Hui, SA for Tras
- Woo Chee Wan, SA for Mentakab
- Chiong Yoke Kong, SA for Tanah Rata
- Lee Chean Chung, SA for Semambu
- Sim Chon Siang, SA for Teruntum