Chief minister Chow Kon Yeow said the land and mines office, together with the district land offices, was evaluating the existing rates, including for first grade land which accounts for over half of all registered land titles in the state.

Chow said that current rates, particularly for first grade land, did not reflect market value and had contributed to revenue loss.

First grade land covers premium land titles that offer the highest level of ownership rights and which typically have fewer restrictions on use or transfer.

“There are 197,412 first grade land titles, or 52.35% of the total. These will be affected by the review,” Chow said in a written reply to Lee Boon Heng (PH–Kebun Bunga) in the state assembly.

Chow said several new rate structures have been proposed although none has been finalised.

The review is expected to continue until the end of this year.

In February, Penang land and mines office director Faizal Kamarudin said the last revision was in 1994.

In a report in state-run Buletin Mutiara, Faizal said a revision was necessary to address stagnant tax revenue, which had remained unchanged for over three decades despite a sharp rise in land values.