Land premium: State government gave 75 per cent discount - Azmin

He said the market price for Setia Alam site amounted to RM19.9 million (RM1,700 per square metre) while in Bukit Rahman Putra, it was RM9.7 million (RM1,200 per sq m).

According to him, the two sites were originally owned by a developer who handed it over to the state government, and was subsequently applied for by the federal land commissioner as alienation for building the fire stations.

Mohamed Azmin said Article 83 (2) of the Federal Constitution provides for land alienation to the federal government in exchange for a premium equal to market value.

"The 75 per cent discount on the sites for building fire stations in Setia Alam and Bukit Rahman Putra resulted in the state government losing revenue or income of RM22.2 million but it is willing to bear the loss for the sake of the people," he said in a statement today.

He was responding to claims by Urban Wellbeing, Housing, and Local Government Minister Tan Sri Noh Omar that the state government was charging a high premium on both the sites.

According to Noh, the land premium amounting to RM5 million for the Setia Alam site and RM2.4 million for the one in Bukit Rahman Putra was very high, considering that the cost to build both stations was only about RM5 million.