by 
30th August 2024
Understanding the 4 Categories of Land Use in Malaysia
Explore the three categories of land use in Malaysia—Agricultural Land, Industrial Land, and Commercial (building) Land. Learn about land use regulations and the process of changing land use categories.
Agricultural Land
Agricultural land is specifically designated for various farming activities. This includes crop cultivation, livestock raising, and other agricultural practices essential for producing food, fiber, and raw materials that support human life and economic activities. The designation of agricultural land ensures the availability of land resources for sustainable food production and agricultural development.
Industrial Land
Industrial land is allocated for manufacturing, production, warehousing, and other industrial processes. Unlike agricultural land, industrial land is essential for the development and growth of industries that create goods, machinery, and products used across various sectors of the economy. Proper zoning and designation of industrial land support industrial growth and economic development.
Residential Land
Residential land refers to plots of land designated for housing development. These parcels are zoned and planned to accommodate dwellings such as single-family homes, apartments, townhouses, and other residential buildings.
Building Land (Including Residential, Commercial, Petrol Station, etc)
Building land encompasses areas designated for residential, commercial, and other uses. This type of land supports various activities and includes residential buildings, commercial establishments, and specialized uses such as petrol stations. The specific use of building land can be identified by referring to the express condition in the land title, which dictates permissible activities on the land.
Change in Category of Land Use
Under Section 52 of the National Land Code 1965, all alienated lands in Malaysia are classified into three categories of land use: “Agriculture,” “Building,” and “Industry.” Landowners must adhere to the designated use of their land as stipulated in the land title. Failure to comply with the specified land use constitutes a breach of the land conditions, and the State Authority has the right to forfeit the land.
If a landowner wishes to change the category of land use, they must apply to the State Authority for approval under Sections 124 and 124A of the National Land Code. This process involves a valuation of the land and the payment of an additional premium, as determined by the State Land Rules. The calculation of the premium varies by state, with rates based on market value and other factors.
Unlock Profitable Opportunities with My Industrial Specialist
By understanding these categories and adhering to the regulations, landowners can make informed decisions about the use of their property, ensuring compliance and maximizing the potential of their land. For more insights into land use and property investment in Malaysia, visit MyIndustrialSpecialist.com. Contact us to start your property investment journey today!
