Railway Assets Corporation sets RM1 monthly rent for schools and places of worship

Transport Minister Anthony Loke has announced a standardized monthly rental rate of RM1 for places of worship and aided schools located on land reserved by the Railway Assets Corporation (RAC). Effective October 1, this policy replaces previous inconsistent rates that varied between RM100 and RM150.

The initiative is implemented through RAC’s corporate social responsibility (CSR) program, as these institutions are non-profit entities. The move aims to benefit 53 existing tenants, comprising 49 places of worship and four aided schools. Loke explained that setting a nominal RM1 fee rather than providing the land for free ensures these institutions remain legal tenants, providing them with legal protection and certainty.

The rental agreement is set for an initial three-year term, with options to extend twice for another three years each, allowing the RM1 rate to be maintained for a maximum of nine years. This special rate does not apply to commercial tenants, such as vehicle workshops, who will continue to pay market-based commercial rates.