Only Malays can buy reserve land
15/05/2007 NST By V. Anbalagan

PUTRAJAYA: Non-Malays who inherited Malay reserve land can only sell the property to Malays.

The Federal Court has ruled that any such transaction involving a non-Malay is illegal.

However, the non-Malay owner can transfer his inheritance to his beneficiaries.

The court made these pronouncements in allowing an appeal by the legal representatives of Lee Keng Liat to recover about RM620,000 in compensation when the Malacca government acquired eight acres (2.6ha) of such land in Mukim Klebang Besar to build houses about 25 years ago.

Keng Liat had acquired the land at the turn of the 20th century after he received a certificate from the governor-in-council that entitled him to hold the customary land.

Under the Malacca Lands Customary Rights Ordinance, only a Malay living in the state or a person holding such certificate from the council was entitled to inherit such property.

On Keng Liat’s death, the property was transferred to a son, Chim Giang, who in 1935, sold the land to Tan Tai Lip.

In 1982, the authorities were ready to pay about RM1 million in compensation to Tan’s heirs. A total of RM420,000 was paid for loss of property and livelihood.

In 1986, Keng Liat’s personal representatives filed a suit at the Malacca High Court, claiming that the compensation for the loss of land was rightfully theirs.

Judge Datuk Abdul Hamid Mohamad said Tan should not have been allowed to purchase the land as he did not have a certificate from the council.

He said the transaction was illegal due to non-compliance of the ordinance.

He said he could not validate the original sale of land "as this would completely defeat the purpose of the creation of the Malacca customary land and Malay reserve land".

Sitting with Hamid were Datuk Arifin Zakaria and Datuk S. Augustine Paul.

Hamid said Malay reserve land came into existence after laws were enacted in the Malay states and the Straits Settlements to protect the land rights of the Malays.

He said the British saw it necessary to do so.

"If at all, it is for the legislature to repeal or amend the laws, not this court," he said of the unanimous ruling delivered on Friday.

Hamid, who wrote the 27-page judgment, said the court gave serious thought to the issue because of "what was happening on the ground".

"Customary land and Malay reserve land may be no more than a beautiful but empty package while the contents are enjoyed by people who are prohibited by law to own it," he said.