Berjaya Hills Resort Berhad challenges Pahang’s quit rent rates after its annual land tax rose from RM2.4 million to RM33.7 million in 2020.
PETALING JAYA: Berjaya Hills Resort Berhad (BHRB) is locked in a high-stakes legal dispute with the Pahang state government over an extraordinary 13-fold increase in quit rent rates, which the resort operator warns could severely damage investor confidence in the state.
The conflict began during the Covid-19 pandemic in 2020, when the state government abruptly revised land tax rates for Berjaya Hills.
BHRB’s annual quit rent bill surged from RM2.4 million in 2019 to RM33.7 million in 2020, an unprecedented 1,304% increase.
BHRB operates major tourism assets in the area, including Colmar Tropicale, The Chateau Spa & Wellness Resort, and Berjaya Hills Golf Resort, which serve as vital drivers for both domestic and international tourism.
“The magnitude of the tax hike as entirely without precedent across Malaysia, claiming that no landowner globally has faced a land tax revision of this scale.
“Between April 2020 and December 2022, BHRB submitted 11 separate appeals to the state government requesting an official review and tax remission.
“While the authorities eventually lowered the annual bill to RM25.75 million, the revised figure still represents a massive 973% increase compared to the 2019 baseline rates.
Left with no alternative, BHRB paid approximately RM42.65 million in quit rent and associated penalties under protest between 2020 and 2026.
Concurrently, the company continued seeking further reviews from the state administration, including the Menteri Besar, but received no response,” BHRB said in a statement yesterday.
The deadlock forced BHRB to initiate judicial review proceedings at the Temerloh High Court in April 2023.
However, the High Court dismissed the application in May 2024, ruling that the judiciary could not interfere with the state government’s policy decisions on land taxation.
BHRB escalated the matter to the Court of Appeal, which subsequently upheld the High Court’s ruling on July 16 2026.
Refusing to accept the verdict, BHRB filed for leave to appeal to the Federal Court on 14 August 2026.
The apex court is scheduled to hear the application on Dec 8 2026.
However, tensions escalated on Sept 28 2026 when Pahang state authorities initiated enforcement actions directly at the Berjaya Hills premises.
“The enforcement measures impacted critical resort infrastructure, including staff quarters, the central laundry facility, and other essential operations.
“BHRB has strongly criticised the timing and nature of the state’s intervention, labelling the enforcement actions as heavy-handed and highly irregular given that the dispute is still pending a final decision before the Federal Court.
“While BHRB reiterated its respect for the decisions of the High Court and Court of Appeal, the company expressed deep disappointment over the rulings.
“The management maintains that the aggressive enforcement measures disrupt its right to conduct business peacefully and violate its legitimate expectations as a long-term operator.
“Furthermore, the company raised alarms regarding the broader economic fallout for Pahang,” the statement read.
As one of the earliest and largest institutional investors in the state—with extensive properties spanning Berjaya Hills and Tioman Island—BHRB warned that such volatile tax policies and aggressive enforcement could deter future domestic and foreign direct investments.
Despite the ongoing friction, BHRB stated it remains hopeful for a favourable legal outcome and urged the Pahang state government to return to constructive dialogue to reach an amicable, mutually acceptable resolution.
In the interim, the resort operator affirmed it will take all necessary legal steps to protect its business operations, its employees, and their families.