Land Acquisition in Johor: Getting Fair Compensation
Your rights when the government acquires your land and how to challenge inadequate awards.
Published: 30 January 2025 · Property
The Land Acquisition Act 1960
The Land Acquisition Act 1960 empowers the State Authority to acquire any land in Malaysia for any purpose that is beneficial to the economic development of the country or the public generally. In Johor, land acquisition has become increasingly common due to major infrastructure projects such as the Rapid Transit System link to Singapore, highway expansions, and mixed-use developments in Iskandar Malaysia. When the government decides to acquire your land, you receive a Form A notice under Section 4 of the Act, which signals the government's intention to conduct a preliminary survey. This is followed by a Form D notice under Section 8, which is the formal declaration that the land is required for a public purpose.
How Compensation Is Determined
Compensation for land acquisition is governed by the First Schedule to the Land Acquisition Act. The Valuation and Property Services Department (JPPH) will prepare a valuation report that forms the basis of the compensation offer. The key heads of compensation include the market value of the land at the date of the acquisition, the value of any buildings or improvements on the land, the value of any crops or trees, and any severance or injurious affection to the remaining land. Importantly, the law also provides for additional payments such as a solatium, which is an additional percentage of the market value awarded for the inconvenience and disturbance caused by the compulsory acquisition. The solatium rate varies depending on whether the acquisition is for a public purpose or a purpose beneficial to the economic development of Malaysia.
Challenging the Compensation Award
If you are dissatisfied with the compensation awarded, you have the right to object. Under Section 12 of the Act, any person who is dissatisfied with the award may apply to the court for a determination of the compensation. In Johor, these cases are heard by the Johor Bahru High Court. The court will hear evidence from both sides, including expert valuation evidence, and will determine the appropriate amount of compensation. The burden is on the acquiring authority to justify the amount offered, but the landowner must also present evidence to support a higher valuation. This is where engaging experienced valuers and a competent land acquisition lawyer becomes critical. The difference between the government's initial offer and the court's final award can be substantial, sometimes amounting to multiples of the original figure.
Messrs S.K. Song has represented numerous landowners in Johor in land acquisition proceedings, securing significantly higher compensation than the initial government offers. If you have received a land acquisition notice, contact us promptly at 07-334 2188. Time limits apply, and early legal advice can make a material difference to the outcome.