Protection of Ownership right of Property

If your property is being compulsorily acquired by the government, your rights to the property are still protected under Malaysian law?

Regardless of whether you are the registered owner, lessee, sub-lessee, tenant, sub-tenant, occupier, chargee, or business operator, your interests are safeguarded by the following laws in Malaysia:

1. The Federal Constitution

It is the supreme law of the Federation and any law passed after Merdeka Day which is inconsistent with this Constitution shall, to the extent of the inconsistency, be void.

Article 13 of the Federal Constitution provides for an individual’s right to property as such:-

13(1) No person shall be deprived of property save in accordance with law;

13(2) No law shall provide for the compulsory use or acquisition of property without adequate compensation.

2. The National Land Code 1965

Section 340 (1) The title or interest of any person or body for the time being registered as proprietor of any land, or in whose name any lease, charge or easement is for the time being registered, shall, subject to the following provisions of this section, be indefeasible.

3. The Land Acquisition Act 1960

Section 3 of the Land Acquisition Act 1960 provides that the State Authority may acquire property :

• For any public purpose;
• By any persons or corporation for any purpose which in the opinion of the State Authority is beneficial to the economic development of Malaysia or any part thereof, or to the public generally or any class of the public;
• For the purpose of mining or for residential, agricultural, commercial, industrial or recreational purposes or any combination of such purposes.

Any person with an interest in the property being compulsorily acquired has the right to engage a private valuer to file a compensation claim with the Land Administrator within the specified time frame. “Persons interested” refers to anyone who claims an entitlement to compensation as a result of the land acquisition. This includes, but is not limited to, landowners, tenants (excluding tenants-at-will), lessees, occupiers, squatters, caveators, chargees, and others with a legal interest in the property.

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This blog / insight is based on Agility Valuers & Property Consultants / Agility Research (AVPC)’s current understanding and insights about the related topic in the current property / real estate market context. Agility Valuers & Property Consultants / Agility Research (AVPC) makes no guarantees, representation or warranties of any kind, expressed or implied, regarding the information including but not limited to, warranties of content, accuracy and reliability. Interested parties should undertake their own inquiries as to the accuracy of the information. Agility Valuers & Property Consultants Sdn. Bhd. / Agility Research (AVPC) excludes unequivocally all inferred or implied terms, conditions and warranties arising out of this document and excludes all liability for loss or damages arising therefrom.

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