52561299 land development process in malaysia (1)

8/13/2019 52561299 Land Development Process in Malaysia (1)

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LAND DEVELOPMENT PROCESS IN MALAYSIA

Looking from the Malaysian land administrative perspective, land development in

Malaysia simply means the change of original use of any alienated land that effects its

restriction in interest, express conditions and category of land use as opposed to what has

been earlier approved by the State Authority upon alienation (Abd Kadir Al!a", #$$%&'

nterestingly, land development is no where mentioned under the )ational Land *ode

()L*& which is the governing code for land administration in Malaysia' +nder the *ode,

land development however takes place in one or more of the following forms

(a& -ariation of conditions, restrictions and categories (Section #./&

(b& Subdivision (Sections #0% 1 #0$&

(c& 2artition (Sections #/3 1 #/%&

(d& Amalgamation (Sections #/4 #%3&

(e& Simultaneous applications for subdivision and variation of conditions, restrictions and

categories (Section #./A&, and

(f& Surrender and realienation special provisions (Sections .3/A 1 .3/!&

5hus, in cases where the land chosen or ac6uired for the purpose of developmentis still in its agriculture status, the application for the conversion (to building or industrial

status&, subdivision, partition or amalgamation of land, wherever applicable, must be

obtained first before any actual development can take place'

n Malaysia, there have been regular occurrences in the past whereby decision for

land development was initiated by the government especially if it is recogni7ed that

development of certain land not necessarily idle or underdeveloped, is essential in

fulfilling certain urban planning policies of the government' 5wo good examples are the

ac6uisition of urban land for the light rail transit pro"ect and the ac6uisition of mainly

estate land for the 2utra"aya development' n some cases however, even though the

government initiates the development plan which may involve ac6uisition of private


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owned land, the implementation of the actual development is still usually offered to

private developers'

5he stages involved in land development for this instance whereby the state government

played the role as the initiator and the role of the developer was taken by a private entity'

Property Development and the Need For Re-development

*losely related to the term 8Land 9evelopment: is the term 82roperty

9evelopment:' 5here are various definitions by scholars on the term ;2roperty

9evelopment4 (Act #>.& of

Malaysia defines property development as the carrying out of any building, engineering,

mining, industrial or other similar operations in on, over or under land, or the making of


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any material change in the use of any buildings or other land, or the subdivision or

amalgamation of lands' 5hus, in broad terms, development can be divided into two

categories, one being the carrying out of physical operations such as building or

engineering works, and the second the making of a material change of use (*adman et

al.,#$$/&

2roperty development can be divided into three prominent stages, namely

#& 2redevelopment stage comprising substages of idea initiation (decision to develop&, site

selection, feasibility, financing and planning consents

.& 9evelopment stage comprising substages of tendering, construction, pro"ect

management, leasing, financing and sale (disposal&

0& 2ostdevelopment stage comprising substages of maintenance, management, leasing,

financing and sale (disposal&

=n the other hand, there is also new school of thoughts (5an, #$$?& that contend

that property development contains only two prominent stages@ predevelopment stage

which combines all the substages in the old school of thoughts< predevelopment and

development stages@ and postdevelopment stage comprising the same substages

identified by the old school of thoughts'

2erhaps the definition that is more relevant to be looked into in relation to the

sub"ect matter of this study is the one given by yrne and *adman (#$?/& who have

divided the development process based on the perspective of uncertainty analysis

which relate to the aspect of viability of a development into three stages

#' Ac6uisition

n this stage, development process involves land ac6uisition upon which the

development is to be carried out' 5here exists the element of uncertainty in this stage due

to physical features of the land, restriction in interest in the land ownership which may

benefit the land or otherwise and natural features and type of land use allowed or

approved by the local planning authority'


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.' 2roduction

5his stage is when the construction of building takes place and the risk and

uncertainty that exists here is in the form of construction cost which constitutes the

second capital outlay' As such the provision for risk is included when deciding on the

building contract'

0' 9isposal

5his stage is when the completed building is owneroccupied, single or multi

occupied or disposed of as investment item' Bisk and uncertainty exist in this stage when

disposal is by way of renting and selling whereby rental and return on investment and

purchase price contain risk element since the result of the development must be produced

first even though the developer cannot guarantee or know for sure that the stability of the

market at the beginning of the development is to last right till the disposal stage'

5his article written by

Sr Puan Nik Nazariah bte Nik Jaafar

Associate 9irector of

)LA !AB5A *=)S+L5A)5 S9) !9

Besearch 9epartment of )!*S

.% Ceb .33$'

STATE

OVERNMENT

Tender Comm!ttee


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9ecision 5o

2rivatise

Dvaluation

Ac6uisition

investigations

proceedings

*ompensation

5ender

A"ard

nvitation 5o

id

9evelopment

proposal

Cinancial proposal

*ompany profile

DEVELOPER

Fa#t Tra$%& A"ard to handp!$%ed developer

Lon' Tra$%& Normal pro$ed(re

Dngage

*onsultant


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F!'(re )*+& The land development pro$e## (nder pr!vat!,at!on

ntrod($t!on

#.%

'

5he development strategies for the next .3 years are focused on the vision for

Kuala Lumpur to become a Eorld*lass *ity' 5he strategies are also firmlygrounded on the direction and accomplishments of the KLS2 #$?/ that set the

framework for the structure and present growth patterns of Kuala Lumpur' 5he

physical shape of Kuala Lumpur, the distribution of land uses, the new growthareas, infrastructure development especially roads and rail systems are all directly

attributable to the policies and strategies set out in the KLS2 #$?/'

#.4'

5he population base of Kuala Lumpur is set to increase from #'/ million to .'.million over the next .3 years' Eithin the context of a city that is already well

developed new strategies that optimi7e limited land resources need to be devised'5his 2lan is part of the ongoing evolution of the *ity and the development

strategies set out here form the basis for the planned spatial development of Kuala

Lumpur as well as guiding the formation of sectoral policies up to the year .3.3'

#.>

'

5he strategies are all encompassing and cover every aspect of the *ity fabric from

spatial and infrastructural development to urban design and the less tangible6ualities of the *ity experience that shape and mould people


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Ta3le *+&Land +se by *ategory, .333

a4 Re#!dent!al

!* E.!#t!n' #!t(at!on

#.$'

Besidential land use increased from 0,?.. hectares to %,/$3 hectares between#$?/ and .333 and is the largest land use component in the *ity' 5he ma"ority of

increases in residential land use have been in the growth areas of Eangsa Ma"u

and andar 5un Ba7ak, whereas ukit Falil has yet to establish its residentialbase' Ma"or established residential land use areas are in 9amansara, ukit ndah,

Setapak and Sentul'

#03

'

!owever, residential land use in the *ity *entre has declined significantly

between #$?/ and .333 and now accounts only for .4'/ percent of the total

residential land use in #$?/'

!!* I##(e

G 9ecline in residential land use in the *ity *entre@ and

G Slow growth of residential land use in ukit Falil'


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F!'(re *+&Land use, .333


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Ta3le *)&Land +se *hange in Besidential, *ommercial and ndustrial, #$?/ .333


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Ta3le *5&Land +se *hange in nstitutional, =pen Space Becreational and SportsCacilities and *ommunity Cacilities, #$?/ .333


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Ta3le *1&Land +se *hange in +ndeveloped Land, S6uatters, nfrastructure and

+tilities, #$?/ .333

34 Commer$!al

!* E.!#t!n' #!t(at!on


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Photo *+&'''residential land use in the *ity *entre has declined

significantly'''

#0#

'

*ommercial land use growth has been significant, increasing by ##4'% percent

from %3/ hectares to #,3$. hectares between #$?/ and .333' Although there has

been some dispersal of commercial land over Kuala Lumpur as a whole, the *ity*entre continues to be by far the most important commercial location in Kuala

Lumpur accounting for .%'. percent of the current total commercial land use'

#0.

'

5he growth areas of Eangsa Ma"u and andar 5un Ba7ak have had respectable

increase in commercial land use which is in accordance with the ob"ectives of the

KLS2 #$?/' !owever, 9amansara has had moderate growth in commercial landuse and ukit Falil has only developed marginally' t is significant that of the four

growth areas, only Eangsa Ma"u has a specialisation index in respect of

commercial land use greater than #'3' 5here has however, been significant growthin commercial land use outside the designated growth areas, in particular in

Sentul, ukit ndah, Fin"ang and Seputeh'

!!* I##(e

G 2reponderance of commercial land use in the *ity *entre@ andG *ommercial growth outside the designated growth areas'

$4 Ind(#tr!al

!* E.!#t!n' #!t(at!on

#00

'

5he industrial component of land use is relatively minor and has increased from

/>% hectares in #$?/ to %%0 hectares in .333' Most of the industrial land use isdistributed in Fin"ang, Sentul, ukit ndah and Maluri, which all grew during the

period' ndustrial land use also grew in the new growth areas of Eangsa Ma"u and

andar 5un Ba7ak and there has been a significant increase in ukit Falil becauseof the Malaysia 5echnology 2ark'


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#0/

'

Many of the older industrial areas are in a dilapidated state, for example, *han

Sow Lin and areas along Falan Klang Lama'

!!* I##(e

G 9ilapidated industrial areas'

d4 In#t!t(t!onal

!* E.!#t!n' #!t(at!on

#0%

'

nstitutional land use which includes government land and military reserve land

has decreased by #.'% percent from #,?%. hectares in #$?/ to #,4.# hectares in

.333 and currently accounts for 4'> percent of the total land use' Most of this landis located in Sungai esi Military *amp, atu *antonment, Sungai esi Boyal

Malaysian Air Corce ase, Ministry of 9efence *omplex (M)9DC& of Falan

2adang 5embak and the federal government complexes at Falan 9uta andMahameru !ighway'

!!* I##(e

G Cuture use of buildings and lands formerly occupied by federal government

offices'

e4 Open #pa$e6 re$reat!onal and #port# 7a$!l!t!e#

!* E.!#t!n' #!t(at!on

#04

'

=pen space, recreational and sports facilities land use includes city park, district

park, neighbourhood park, local park, local play area, sports complex, golf course,

polo field and as well as forest reserves' 5otal open space, recreational and sportfacilities land use has increased significantly by #4$'4 percent from %?4 hectares

in #$?/ to #,%?3 hectares in .333, although there has been a steady decline inpublic open space in the *ity *entre largely because of conversion to other uses'

#0>

'

Ma"or open spaces in the *ity *entre comprise the public open spaces of 5aman

5asik 2erdana, ukit )anas and the Kuala Lumpur *ity *entre 2ark (KL**&totalling 03# hectares' 2enchala contains the largest amount of open space,

recreational and sport facilities totalling /?4 hectares comprising mainly the ukit

Kiara otanical Harden, ukit Kiara D6uestrian 2ark, Kiara Eest -alley 2ark,


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52561299 land development process in malaysia (1)

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