Kuala Lampur:A new rental rate of RM1 per month has been implemented for places of worship and capital-aided schools situated on reserve land managed by the Railway Assets Corporation (RAC), starting October 1.

According to BERNAMA News Agency, Transport Minister Anthony Loke announced that the standardized rate replaces the previously varied rental fees, which benefited 53 tenants, including 49 places of worship and four schools. This initiative is part of RAC's corporate social responsibility program, recognizing these institutions as non-profit.

The RM1 rent ensures that tenants remain lawful while offering them stability and protection. However, tenants involved in commercial activities, like vehicle workshops, will continue to pay commercial rates.

The new tenancy agreements will last three years, with two renewal options for an additional three years each. This structure allows tenants to benefit from the RM1 rate for up to nine years, removing the need to reapply every three years, though a new agreement must be signed at each renewal.

Despite the beneficial terms, the land remains designated as railway reserve and may be reclaimed by the government for strategic development, such as new railway tracks, if necessary.

Transport Ministry secretary-general and RAC board chairman, Datuk Seri M. Jana Santhiran, noted that the decision followed a review of concerns raised by the institutions over recent years.