US$1.6 billion levy complicates sale of Singapore land by Malaysian king’s son
A Malaysian royal’s plan to sell a tract of land in the heart of Singapore faces a complication: a tax bill that may exceed US$1 billion. A levy known as a land betterment charge has emerged as a sticking point in negotiations between some prospective buyers and the current owner, the eldest son of Malaysia’s billionaire king, according to people familiar with the matter. The owner wants any…
A Malaysian royal, Tunku Ismail Ibrahim, the eldest son of Malaysia's billionaire king, is attempting to sell a 16.6-hectare tract of land in Singapore. However, the transaction is facing a significant obstacle in the form of a tax known as the land betterment charge, which may exceed US$1.6 billion. This levy is imposed when the government grants planning permission or other approvals that increase the value of the land.
The tax could range from S$2.5 billion to S$2.7 billion, according to estimates from local property analysts. The land in question was obtained through a 2025 land swap with Singapore, allowing for the development of higher-value properties further from the UNESCO World Heritage site of the Botanic Gardens. The Singapore Land Authority, which administers the tax, has not commented on the matter.
Despite the tax, several potential buyers from the U.S. and elsewhere have expressed interest in the land. The tax is intended to ensure that economic benefits from land development are returned to the community.
Written by urgent.news from South China Morning Post's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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