Tunku Ismail Ibrahim is seeking to sell 16.6 hectares of land, with his representatives courting buyers from the US and elsewhere
3-MIN READ3-MINBloombergPublished: 3:43pm, 3 Sep 2026A 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 buyer to foot the bill, the people said, asking not to be identified because the information is private.The tax, imposed when the government gives planning permission or other approvals that increase the value of land, may run north of S$2 billion (US$1.6 billion), according to estimates by three local property analysts.
A representative for Ismail, the crown prince and regent of Malaysia’s southernmost state of Johor, declined to comment. The Singapore Land Authority, which administers the tax, said it does not comment on market speculation concerning landowners’ intentions or potential private transactions.
The tax would be payable by the land’s owner at the time its development is approved, although owners can nominate one or more other parties to pay. The timing of any government approval for development is unclear.
