The Land Acquisition Act 1960

Assoc. Prof. Dr. Buang and Dr

Choong Weng Wai
Lec 2

Acts You Need to Know

(1)The Valuers, Appraisers and

Estate Agents Act 1981
(2)The Land Acquisition Act 1960
(3)The Local Government Act
1976
(4)The National Land Code

The principal land acquisition

enactment in Peninsular
Malaysia is the:
Land Acquisition Act 1960
(Latest modification is on 20.)

Why We Need Such Act?

The Rules of Law said that no one is above the law.

Recollect
Act 13 of the Constitution:
13 (1) provides that no person shall be
deprived of property save in accordance
with law
13 (2) provides that no law shall provide for
the compulsory acquisition or use of
property without adequate compensation

Overview of Land Acquisition Act

Part I Preliminary (Interpretation)

Part II Acquisition
Part III Summary Enquiry
Part IV Taking Possession of Land
Part V Reference to Court
Part VI Service of Notices
Part VII Temporary Occupation or use of Land
Miscellaneous

Overview of Land Acquisition Act

First Schedule: Principles
relating to the determination of
compensation
Second Schedule: Forms
Third Schedule: Evidence and
procedure in land references
cases

 Who/which authority
endowed with the
sovereign power to
acquire land compulsory?
Answer: ..

Section 3 (1)
Yes, Under Section 3 (1) (a) (b) and (c)
1 (a): For any public purpose
1 (b): by any person 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; or
1 (c): For any purpose of mining or for
residential, industrial or recreational
purposes or any combination of such
purposes.

Define a person
or
Corporation?

Challenging Land Acquisition

The term public purpose has not been
expressly defined. Parliamentary reluctance has
meant the matter is left to the courts to interpret.
Unfortunately, the courts have consistently
declined to do so.
In S. Kulasingam & Anor vs Commissioner
of Lands, Federal Territory & Ors (1982, 1
MLJ 204),
the court said, The expression public
purpose is incapable of a precise definition. In
this, the Malaysian courts were following the
practice adopted in India.

Continue..
As for the acquisition of private property for
economic development, this provision has in
the past led to abuse.

In Syed Omar vs Government of Johor

(1979, 1 MLJ 49), private property
belonging to the plaintiff, measuring some
5,700 acres, was compulsorily acquired
even though only 2,000 acres were
actually needed for the construction of the
Johor Port. The remaining portion of the
land was marked for future development.

Continue..

How the Land

Acquisition Act
define Market
Value?

continue

Land Acquisition Act

did not define the
Market Value.
The term market value
is explained in the First
Schedule of the Act.

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Market value now means the value of
the land as at the date the notice to
acquire it is published in the Gazette,
provided the notification is followed by
a declaration to acquire, which must be
made within 12 months.
If the declaration is done later than 12
months, then the market value has to be the
value on the date the declaration is
republished in the Gazette.

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In Ng Tiou Hong vs Collector of Land
Revenue Gombak (1984, 2 MLJ 35),
Federal Courts Syed Agil Barakbah (J)
explained that market value means the
sum of money that a willing vendor
might reasonably expect from a willing
purchaser. The elements of
unwillingness, sentimental value and
urgency of the acquisition must be
disregarded.

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In Bukit Rajah Rubber Co.
Ltd vs Collector of Land
Revenue Klang (1968, 1 MLJ
176), Raja Azlan Shah (J)
said that no hard and fast
rule can be laid down for
assessing the market value
of the land acquired.

According to the Manual of

Valuation Standards,
Market value is the estimated
amount for which an asset should
exchange on the date of valuation
between a willing buyer and a
willing seller in arms-length
transaction after proper marketing
wherein the parties had each acted
knowledgeably, prudently and
without compulsion.

THANK YOU