Land Acquisition

Land Selection

Two years prior to the date a specific piece of land is required, the ministry or department seeking the land must first determine the site it needs. This determination shall be made through consultations between the ministry or department requiring the land and the relevant District Officer or Land Administrator. Such consultations must be conducted via the district site selection committee and must take into account the suitability of the land or site—specifically regarding its location, intended use, cost, and the availability of sufficient funds for the project to be implemented.

At this stage, consideration must be given to potential social and economic issues that may arise as a result of the land acquisition. For instance, areas occupied by squatters should be avoided. Before acquiring land to implement new projects, the relevant ministry or department must first seek the views of the local authority and other technical departments. However, input from technical departments is not required if the acquisition pertains to the expansion of an existing project, such as road widening. The ministry or department must also determine whether a notification under Section 4 of the Land Acquisition Act (LAA) 1960 is necessary.

The final decision regarding site selection must be made at least 6 months prior to the date the land is intended to be acquired. However, if a notification under Section 4 of the Land Acquisition Act 1960 is required, the Federal Lands Commissioner (FLC) must be notified well in advance of the 6-month period preceding the date the land is required.

Official Application

Once a final decision regarding the site selection has been made, the relevant ministry/department shall write to the PTP so that a formal application may be submitted on its behalf to the appropriate State Authority (PBN). The format for the letter to be sent to the PTP is provided on page A.

The application letter to PTP must be accompanied by the relevant plans and documents, as follows:

• 25 copies of the acquisition plan, utilizing the same specifications as those held by the relevant land office.
• The boundaries of the lots applied for must be colored red.

Upon receiving an application from a ministry or department, the PTP shall submit a formal application to the State Authority (PBN) through the State Director of Lands and Mines (PTG), using a designated application form and distributing copies to the relevant parties.

Processing Applications

Upon receipt of a copy of the formal application from the PTP, the PT shall take action to process the application, including the preparation of a summary paper for the consideration of the PBN. The summary paper shall, among other things, contain the following information:

Once the State Authority’s approval has been obtained, the State Director of Lands and Mines (PTG) is requested to prioritize the issuance of a government gazette notification as soon as possible. This is necessary because the gazetting process typically takes a considerable amount of time, and subsequent actions cannot be expedited until it is completed.

Land Valuation

During the gazette declaration process under Section 8, the Land Administrator (PT) is requested to contact the relevant State Director of Valuation and Property Services to obtain a land valuation, without waiting for the gazette notification to be published. This is to avoid delays.

For the purpose of obtaining a land valuation from the Valuation and Property Services Department, a form such as the one on page B must be used.

Investigation and Payment of Compensation

The Land Administrator (PT) should note that copies of Form E—and, where applicable, Form F—must also be submitted to the relevant ministry or department. Pursuant to Section 55(2), a representative from the said ministry or department may attend the inquiry to provide testimony, provided they present a letter of authorization signed by the State Secretary. A copy of Form E must also be forwarded to the Land Acquisition Unit (PTP) for their information.

Interested parties or their representatives may be present on the day the inquiry is conducted. Upon the conclusion of the inquiry, the Land Administrator (PT) shall issue a written order in Form G and provide Form H to the interested parties. Copies of Forms G and H must also be forwarded to the relevant ministry or department. In any event, the Land Administrator must issue the written order within two years from the date of the gazette notification of Form D. Failure to do so will result in the expiry of Form D, which effectively renders the acquisition proceedings void.

Upon receiving a copy of Form H, the relevant ministry/department must promptly make the compensation payment within a period of 3 months. In accordance with Section 29A of the Act, if an award for any scheduled land exceeds RM 15,000, then 25% of the compensation shall be withheld for a period of 6 weeks—the timeframe allowed for the ministry/department to file an appeal under Section 37(3) of the 1960 Act. If no appeal is filed, the remaining 25% of the compensation must be paid, along with interest at a rate of 8% calculated from the date of the initial payment. It is recommended that the ministry/department pay the full amount of compensation if they do not intend to file an appeal or objection against the Land Administrator’s award.

In the circumstances specified under Section 29(1) of the Act of 1960, the funds must be deposited with the court; or, in cases where an interested party has died intestate, the funds must be promptly deposited with the office of the Administrator of Estates (Malaysia) to avoid the accrual of interest at a rate of 8% per annum. (Refer to the Circular of the Director General of Lands and Mines No. 1/1992). The relevant Ministry/Department must notify the Director General of Lands and Mines (PTP) of the date on which the compensation payment is made.

Referral to Court

Pursuant to the grounds specified under Section 37 of the Land Acquisition Act 1960, any interested person—or the party on whose behalf the land is being acquired—may, through the Land Administrator (PT), refer the matter to the court. The attention of the relevant parties is drawn to Section 38, which stipulates the procedure and the timeframe within which such a referral may be made. Among the conditions for a referral that must be satisfied is the payment of a deposit—in the amount requested—within 30 days from the date of receipt of the letter from the Land Administrator.