KUALA LUMPUR (Oct 2): Berjaya Hills Resort Bhd, part of Berjaya Corp Bhd (KL:BJCORP), said the enforcement on its properties by the Pahang authorities was “unconscionable and totally unacceptable”.
The action, taken amid dispute over a sharp jump in quit rent, was also “unreasonable” and impinges on Berjaya Hills’ legitimate expectation to carry on its business and operations in a peaceful manner, the company said in a statement following forfeiture of premises on Sept 28.
“Such actions by the Pahang state government will negatively and adversely affect future investments by both local and foreign investors in the state of Pahang,” Berjaya Hills said.
Berjaya Hills owns land and operates hotels and resorts in the highland destination near Bentong including Colmar Tropicale, The Chateau Spa & Wellness Resort and Berjaya Hills Golf Resort.
For now, Berjaya Hills has secured a temporary stay over the forfeiture covering staff quarters, the central laundry and other essential facilities, while the company applies to have its case heard at Malaysia’s highest court following recent loss at the High Court and the Court of Appeal.
The dispute stems from a 13-fold increase in quit rent on Berjaya Hills’ properties to RM33.7 million in 2020 from a year earlier, which the company said was “extraordinary and without precedent” in Malaysia.
The amount was later reduced to RM25.75 million, still an increase of nearly 10 times following 11 appeals to the Pahang state government between April 2020 and December 2022, according to the company’s account of the events.
Berjaya Hills continued to appeal without success before challenging the quit revision in the High Court in April 2023. The attempt failed as the court ruled that it could not intervene in the state government’s policy decision on the revision of quit rent rates.
The company then pleaded its case at the appellate court but lost in a July decision. An application seeking permission to bring the matter to the Federal Court was made in August this year, with the hearing scheduled on Dec 8.
While Berjaya Hills is hopeful for a positive outcome to its legal action, the company added that it “sincerely hopes that the Pahang state government will continue to engage constructively with the company towards a mutually acceptable and amicable resolution”.
Shares of Berjaya Corp ended unchanged at 25 sen on Friday, valuing consumer conglomerate at RM1.52 billion.