All About The New Regulation On Selling Government-Owned Shares In JV Companies In The Tourism Sector

On Monday, the Ministry of Finance has publicized the new regulation stipulating the guidelines pertaining to selling government owned shared in Joint Venture (JV) companies in the tourism sector – falling in line with recent amendments made to the Tourism Act which bestows the discretion to the government to sell its shares in JV companies in the tourism sector. You may view the regulation through this link.  

As per the regulation, such shares may only be sold by the Ministry of Finance under the advice from the President and will only be applicable in cases where the shares are being sold to the remaining shareholders within the company. Following such a decision, a selling agreement must be made which should specify the amount of shares to be sold, details of how the price of the sold shares will be paid and the payment period for shares sold.  

Accordingly, the price of the shares shall be sold at a rate of USD 5 per square meter from the land that is being given for tourism development. Whilst the government is able to allocated the period of time in which the price of the sold shares must be fully paid up – the longest duration that can opted for in 18 months.