Land Acquisition

The State Can Take Your Land. It Cannot Pay You Less Than You Deserve.

The Land Acquisition Act 1960 confers on the State Authority the power to acquire any land needed for any public purpose or for any purpose beneficial to the economic development of Malaysia. This power is wide and, in many cases, difficult to challenge. But the same statute also guarantees that the person whose land is being taken is entitled to adequate compensation. The gap between what the state offers and what the land is actually worth is where most disputes arise.

Compensation under the Act is assessed according to the market value of the land at the date of the gazette notification under Section 4, together with additional amounts for severance, injurious affection, disturbance, and any other matters the court considers proper. In practice, the valuations prepared by the Valuation and Property Services Department (JPPH) on behalf of the acquiring authority often differ significantly from valuations prepared by the landowner's own valuer. The difference can run into hundreds of thousands of ringgit, sometimes millions.

Messrs S.K. Song has represented individual landowners, families and corporate landholders in land acquisition matters across Johor. Our experience includes cases arising from the large-scale acquisition of land in Pengerang for the Refinery and Petrochemical Integrated Development (RAPID) project, where entire communities were affected by compulsory purchase orders. We understand the human cost of these acquisitions: homes, farms, and land held by families for generations, taken for public infrastructure and industrial development.

The procedure for challenging compensation is set out in the Act itself. After the Collector of Land Revenue makes an award under Section 12, a dissatisfied person may apply to the court under Section 14 for the award to be referred to the High Court for determination. The application must be made within six weeks of the award. The High Court then hears evidence from valuers on both sides before determining the proper amount of compensation. This is a specialist area of litigation that requires careful coordination between lawyer and valuer, and our firm has the experience to manage that relationship effectively.

How We Can Help

We advise landowners from the moment a Section 4 notification is gazetted. Our lawyers review the proposed acquisition, assess whether the stated public purpose is valid, and advise on the prospects of challenging the acquisition itself. In most cases, the challenge centres on compensation rather than the legality of the acquisition. We engage independent valuers, prepare the necessary court documents, and represent landowners at the High Court hearing. Where the court's determination is unsatisfactory, we advise on the prospects of appeal to the Court of Appeal.

Relevant Legislation

• Land Acquisition Act 1960 (Act 486)
• National Land Code 1965 (Act 56)
• National Land Code (Penang and Malacca Titles) Act 1963
• Land (Group Settlement Areas) Act 1960
• Land Mines Act 1953
• Rules of Court 2012 (land acquisition references)