Pahang govt open to talks with Berjaya Hills over quit rent dispute

Pahang Menteri Besar Wan Rosdy Wan Ismail says the state government is open to discussions with Berjaya Hills Resort Bhd over enforcement action at its Bukit Tinggi properties, but any talks must adhere to existing laws. The dispute centres on revised quit rent rates that jumped to RM33.7 million in

PETALING JAYA (Oct 7): The Pahang government is open to discussions with Berjaya Hills Resort Bhd over enforcement action at its Bukit Tinggi properties, but any talks must be guided by existing laws and regulations.

Pahang Menteri Besar Datuk Seri Wan Rosdy Wan Ismail said on Tuesday (Oct 6) that the state government’s action was based on the law and any discussions must follow the applicable rules. According to Bernama, he was speaking to reporters in Temerloh in response to the company’s criticism of the enforcement action amid a dispute over revised quit rent rates.

Separately, diversified group Berjaya Corp Bhd said in a Bursa Malaysia filing on Tuesday (Oct 6) that its main businesses at Berjaya Hills remained fully operational and the enforcement action would have no material financial or operational impact on the group. In its response to Bursa Malaysia’s queries, the group said the Pahang authorities had sealed and restricted access to staff quarters, a central laundry facility, a rabbit park and a Japanese garden on Sept 28. The Chateau Spa & Wellness Resort, Colmar Tropicale Hotel, Berjaya Hills Golf & Country Club and the greenhouses were unaffected and continued to operate as usual, it said.

Berjaya Corp also said it had recognised the higher annual quit rent expenses through accruals for each financial year since the revised rates took effect in 2020, including the current financial year. The accruals were based on the applicable rates stated in the annual quit rent demands issued by the relevant authorities. The group said the financial impact of the revised rates had therefore been reflected in its financial statements for the respective years, while the rates had no material operational impact.

Bernama reported that the dispute arose after Berjaya Hills’ annual quit rent had increased to RM33.7 million in 2020. The amount was subsequently reduced to RM25.75 million. The company challenged the revised rates through a judicial review application, which was dismissed by the High Court. The Court of Appeal upheld that decision on July 16. Berjaya Hills subsequently sought leave to appeal to the Federal Court, with the leave application scheduled to be heard on Dec 8, according to Bernama.

Wan Rosdy said it was up to the company to pursue the court proceedings while reiterating that any discussions with the state government must remain within the law.