Payments to convert bumiputera housing lots in Johor into non-bumiputera lots is a state policy meant to aid the bumiputera, explained Menteri Besar Khaled Nordin.

He said since 2013, developers are able to apply to convert bumiputera housing lots by making a 7.5 percent contribution - or half of the 15 percent bumiputera lot discount - to the state, with projects prior to 2013, eligible for lower payments.

"The contributions or collections acquired through payments to convert (lots) and release the bumiputera status are then channeled to a Bumiputera Housing Fund," Khaled said in a statement today.