CENTRE OF TOWN AND REGIONAL PLANNING

DEPARTMENT OF BUILT ENVIRONMENT STUDIES & TECHNOLOGY

FACULTY OF ARCHITECTURE, PLANNING & SURVEYING (FSPU)

BACHELOR DEGREE (HONS) IN TOWN AND REGIONAL PLANNING

STRUCTURE OF GOVERNMENT
(TPS515)
AAP221FL3A

ASSIGNMENT 2
ISSUE AND PROBLEMS RELATED TO LAW AND PLANNING PRACTICE IN MALAYSIA

PREPARED BY :
MOHAMMAD FADHLI BIN YUSOFF 2021989071
ZUHAIREE BIN ZULKIFLI 2021110821

PREPARED TO :
DR. KAMARIAH BINTI ABDULLAH

MARCH – AUGUST 2022

(15 JULY 2022)

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TABLE OF CONTENT
ITEM PAGE
1.0 INTRODUCTION 3
2.0 PIECEMEAL LAND – EFFECT TO LAW PLANNING PRACTICE 3
2.1 Introduction 3
2.2 Definition 4
2.3 Issues 5
2.4 Development Challenges 9
2.5 Summary 10
3.0 RELATIONSHIP BETWEEN FEDERAL AND STATE 11
GOVERNMENT IN LAND ACQUISITION PROCCESS
3.1 Introduction 11
3.2 Land Aquisition Proccess 12
3.3 Issues 15
3.4 Problem Solving Proposal 17
4.0 CONCLUSSION 19
5.0 REFERENCES 20

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1.0 INTRODUCTION

The best urban planning must have the policies that can control the development. Good
planning practice also have control in terms of its develepment. The Industrial Revolution
in 19th century has created variuos problems as a result of the drastic development of the
city without going through systematic planning practice. Therefore, urban planning should
be emphasized by focusing on residential patterns, provision of facilities and complete
infrastructure. In addition, to taking into environment well-being factors for the sake of
harmony and well-being of its citizens.

In the implimentation of best urban planning practise, there are various issues identified that
can cause the planning of an area to fail. The most important issue seen is the uncontrolled
development of land and the relevance of land administration with federal and state powers.
This study will discuss issues related to planning practice and legislation in Malaysia. The
two issues to be discussed are as follows :

a. Issues and impact of piecemeal land development on legislation and planning

practice.
b. Relationship between federal and state government in land acquisition process.

2.0 PIECEMEAL LAND – EFFECT TO LAW AND PLANNING PRACTICE

2.1 Introduction

In general, real estate transactions involve many processes and procedures. When
the processes and procedures in the legislation and administration of the land are
not observed preferably, a violation of the conditions may occur and
induce the occurrence of professional negligence or real estate fraud (Ismail Omar,
2021).

Basically, a piecemeal land is a piece of agricultural land that has valid title
document and sold on small lot without make the transfer of land to the purchaser
or the issuance of separate title document for the small lot (Norhayati Umor, 2018).

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 The term “piecemeal land” was introduced in the development of land by the owner
or buyer based on the concept of fraction of small lots in a title.

In addition, there is also another proclamation relating to the use of the terms “lot
lidi” whose origins are known from the states that receive many applications related
to the matter. The development of piecemeal land is carried out by making fractions
of small lots on the agricultural land without obtaining and transacting from transfer
of land at the State Land Office or District Land Office (Shahzaidi, 2020).

2.2 Definition

The definition of terms that related to piecemeal land development including the
following points :

a. Piecemeal Land – a piece of land with legal title which is then devided by the
small lots for resale for the purpose of residential building.

b. Trustee – one of the owner of the title who is self-appointed or appoited by the
purchasers of the small lot for hold the trust of all buyer in one master lot with
only one person registered in the title.

c. Trustee Aggrement – a letter in the form an agrrement between the purchaser

and the trustee stating that the trustee will hold the rights to the land.

d. Inheritace – the procedure for the distribution of land to the rightfull heirs after
the death of the land owner.

Figure 2.0 shows am example of a lot of land that has been made a piecemeal land
for sale to the buyer. It clearly indicated the development made only for profit and
not to provide adequate infrastructure facilities.

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 Figure 2.0 : An Example of Piecemeal Land

2.3 Issues

2.3.1 Findings of Piecemeal Land Development

Based on report from Bahagian Maklumat Guna Tanah PlanMalaysia 2018 dan
JUPEM 2017, statistics on the numbers of piecemeal land involved in states of
Peninsular Malaysia are shown in Table 2.0 below.

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Table 2.0 : Statistic of Piecemeal Land in Peninsular Malaysia.
STATE TOTAL OF MAIN TOTAL OF PERCENTAGE
LOTS SMALL LOTS
Kelantan 621,056 74,456 19.53%
Terengganu 100,842 35,423 9.29%
Pahang 630,813 23,078 6.05%
Selangor 1,298,952 38,753 10.16%
Perak 1,026,807 43,241 11.34%
Pulau Pinang 329,053 27,892 7.31%
Kedah 700,223 34,843 9.14%
Perlis 77,590 6,745 1.77%
Negeri Sembilan 535,517 21,946 5.76%
Melaka 325,522 22,657 5.94%
Johor 1,251,753 45,188 11.85
W.P Kuala 166,229 6,359 1.67%
Lumpur
W.P Labuan 12,410 738 0.19%
TOTAL 7,076,767 381,318 100.00%
Source : Bahagian Maklumat Guna Tanah PlanMalaysia 2018 and JUPEM 2017.

There are many peoples think that buying a piecemeal land is worth it because it is
cheaper than land already has a separate individual title (Salkukhairi Abd Sukor,
2020). Nevertheless, the factors that cause many buyer to purchase a piecemeal
land are the insistence on buying piecemeal land sterms from the problem of
expensive land and house prices, low knowledge related to land affairs, need to
build a dream house on own land and so on.

There are also other factors influencing the purchasing the piecemeal land including
the high market value of the property, cost saving in the matter of appointing
architects or real estate consultants, unwillingness to deal with many parties and so
on. In this context, property buyers need to enhance their knowlodge of property
and the government agencies need to develop property knowledge (Ismail Omar,
2019).

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2.3.2 Purchasing Piecemeal Land Risks

The purchasing of piecemeal land poses many unprofitable risks to neither the
owner nor the buyer of piecemeal land itself. In the real estate transactions, losses
not just refer to the risk of a fall in price fraud in the market alone, in fact losses
related to reputation, time, position and so on. The business activities of the
piecemeal land are concentrated in the sub-urban area with the remain target of
buyers being the villagers, pensioners or young families who are passionate about
finding their own assets. The speculative assumption of making a profit immediately
poses a short term risk and bring long-term permanent losses. The price speculation
scenario becomes increasingly disorientated as the property market falls as it is in
the face of the implications of the COVID-19 pandemic (Ismail Omar, 2021).

The risks available to the owners and buyers of the piecemeal land to be faced
including :

a. Land Ownership

The principles of the Malaysian land administration system modeled on the

Torrens system stipulate that the title document proves the holding or
ownership of the land. In these case, only one person will be registered as
the Trustee of all the owners of the piecemeal land in the relevant land title.
Persuant to section 78(3) of National Land Code (NLC), the importance of
the land title approved for alienation and still continues to be owned by
original owner untill the title registered in the name of the new owner. Without
legal land ownership, the buyer can’t apply for a bank loan to develop the
land. A legitimate sale an purchase is also not possible. The same goes for
taking insurance, leasing and so on without legal validity of the land.

b. Transaction Ristriction

The action of a piecemeal land buyer who use a Trustee Agreement as a

land ownership document for the purpose of the transaction is an act that

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 contradicted the land laws in Malaysia. This action was also assisted by
small number of lawyers who prepared a Trustee Agreement to convince the
buyer of piecemeal land. Therefore on 28 September 2018, the Mines and
Land Office (PTG) and District Land Office in the State of Selangor has
dicided to postpone the registration of the Trustee Agreement related to
piecemeal land.

c. Contradiction of Land Use

According to section 120 of NLC the express conditions and restrictions of

interest are given by the State Authority when approving the alienation.
These terms will be endorsed in title in accordance with the provisions of
section 121 and 122 of NLC. Usually piemeal land are conditional
agricultural lots. Therefore, buyers of piecemeal land often make the offence
of breach of conditons by built a house on an agricultural lot and this is
serious offence under section 125 of NLC. The State Authority in Selangor
does not recognize the development of piecemeal land in land administration
matters. With this disclaimer, the “transaction costs” incurred by the buyer
constitute a loss to oneself.

d. No Land Compensation Eligibility

If the government intends to acquire land on a piecemeal land for some

reason, then the purchaser of the lot does not have any right to claim
compensation from the government. During the hearing and recruitment
investigation, only Trustee that registered in the title will called. While
compansation money will be given to the Trustee only. As a result, a buyer
who has no name on the title will be waived and will not eligible for
compansation under Schedule 1 of Land Acquisition Act 1960.

e. No Inheritance Eligibility

When the landowner dies, the land and everything on the land can be made
for inheritance under the provisions of the Small Estates (Distribution) Act

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 1955. However, buyers of piecemeal land are at risk as the Trustees can
claim on the land. Beneficiaries of piecemeal land buyers are not recognised
under the Small Estates (Distribution) Act 1955 because their names are not
registered in the title of the land.

f. Death of The Trustee

The highest risk to be faced by the owners of the piecemeal land is when the
appointed Trustee dies. As a result, the transaction of the land could’nt be
carried out. Based on the risks, it is clear that the purchasing the piecemeal
land can be detrimental to the parties involved contradict the provisions of
existing laws.

2.4 Development Challenges

The development of the land in Malaysia need to consistent with Town and Country
Act 1976 (Act 172), Road, Drainage and Building Act 1974 (Act 133), National Land
Code 1965 (Act 828) and other Standard Operation Prosedure (SOP) including One
Stop Centre (OSC) Manual. Development control is often seen as a form of
goverment intervention whereas it aims to create an effective development (Pearce,
1992). In this context, all development requires Planning Permission which is
preliminary process in land use planning as mentioned under section 22 of Act 172.
The challenges that identified for piecemeal land development are follows :

a. Conflict with Act 172 & Act 133 – without planning permission, application
for approval of main construction permits like road & drainage plan, building
plan and earthwork plan can’t be considered by the Local Authority. Based
on the development process, without development approval the next stage
of development like site construction could not be continue.

b. Ilegal Development – normally piecemeal land is agricultural land. Housing

development on agricultural land is a serious offence as mentioned under
section 125 NLC 1965 (Act 828). Hence, if there is an application for planning

9
 permission for a development on agricultural land, the development will not
approved untill all the legal requirements are complied.

c. Unable to Get Financing – althought most of piecemeal land is affordable

and cheap in the market, the purchasing for this land needs to cash buying
method. It is because mortgage or collateral process will not be possible
without a valid ownership.

d. Uncompleted Basic Infrastructure and Utilities – in the context of physical

planning for the development of piecemeal land, various challenges faced
such as the provision of community facilities and insufficient infrastructure.
The lack of basic infrastructure and utilities is a consequence of residential
areas in non-strategic location and small size of land. Contraints on the
provision of complete infrastructure will cause uncomfortable to the resident
and also can make other issues such as environment pollution.

e. Challenges for Environment Sensitive Area – in the residential development

guidelines mentioned that housing development are not allowed in high risks
area area and environment sensitive area like flood area, wetland, land slide
area, mining area etc. Based on the area mentioned before, piecemeal land
development that normally agricultural land will be threatened with natural
disasters such as flood and land slides if the area is located on hillsides.

2.5 Summary

Although the trend of buying and selling piecemeal land is still under control, the
effort by State Authority, District Land Office and Local Authority should be taken
seriously to protect and educate buyers from being deceived including efforts in the
development of planning controls. The provisions in the National Land Code (NLC)
1965 which emphasize the category of land in title clearly prove that one way to
control over the development of suitable land in the present and future.

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3.0 RELATIONSHIP BETWEEN FEDERAL AND STATE GOVERNMENT IN LAND
ACQUISITION PROCCESS

3.1 Introduction

Uniqueness Malaysia as a country Federation is the division of certain power

between the Federal Government and State Government when the states form a
Federation. Power is not only concentrated in the Federal Government as a
government central, but instead divided between the two governments. When
country reach independence on years 1957, affairs administration land is source
most important to development and revenue generation continue to be placed under
jurisdiction The State Government follows the tradition and history that the king or
sultan as the government is the owner of the land. A very rare topic touched is
relationship at between Government Federation by Government state
in particular involves issues disposal land from the State Government to the Federal
Government. Government Powers The state and the rights of the Federal
Government are uniquely not just touched by the law certain like Kanun Land
Country or Act Land Acquisition but more importantly the matter involved disposal
land the allocated at in Constitution Federation as the main law in Malaysia.

At an early stage i.e. from the year 1957 to 1965 there were several land legislation
in force power in Malaya and Malaysia later. For example, Federated Malay States
Land Code 1926 (Cap.138) applicable in the Malay States Allied (Negeri Sembilan,
Pahang, Selangor and Perak) (Tengku Elias, 2006). Meanwhile for Non-Associated
Malay States (Perlis, Kedah, Kelantan, Terengganu and Johor), their respective
state land enactments continue to apply wear. As for Penang and Melaka, the land
law applicable is based on the English Deeds system. Plurality and the legislative
diversity of these lands was later eliminated when the National Land Code 1965 was
introduced on the basis of principles the Torrens system which is the main
framework for the Federated Malay States Land Code 1926 (Cap.138). National
Land Code [Act 56 1965] began came into force in Peninsular Malaysia on 1 January
1966. For the state Sarawak and Sabah, Sarawak Land Code and Sabah Land
Ordinance continue applicable until now. The National Land Code (KTN) is a an act
made in Parliament for the purpose of standardizing legislation land in the states of

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 Peninsular Malaysia. The supreme power of the allocated in the KTN is the State
Authority (PBN) or State Authority which means the State Government lawfully
elected by the people through elections. The uniqueness of Malaysia as a country
the alliance still stands out despite the supreme authority for land legislation is PBN
because of the powers allocated to The PBN is still subject to some other conditions
and powers such as Federal Constitution, National Land Council (MTN) and Director
General Land and Minerals (Federal). The purpose of this writing is thus to see and
understand the relationship between the Federal Government and the State
Government in the context of the issue of land acquisition by the Government
Federation, factors and proposed solutions to those issues faced.

3.2 Land Aquisition Proccess

Acquisition of Federal Government land from the State Government is made through
several methods. The methods of land acquisition refer to the provisions in the KTN
based on authority disposal of land available to PBN. Under section 42 KTN, PBN
has the power to dispose of land through the following methods:Reserving
Government land under section 62;

a. Granting a lease on the land reserved below section 63;

b. Permitting occupation on Government land or reserve land under a
temporary occupation license under section 65;
c. Permitting removal, removal and transportation rock material together with
the occupation of Government lands or reserve land under section 69;
d. Permitting removal, removal and transportation rock material under section
70;
e. Permitting the occupation or use of airspace in on Government land or
reserve land under a space permit air under section 75A; and
f. Possession of Government land under section 76.

The party that can be disposed of land to him by PBN is as provided under section
43 KTN as follows:

a. Humans other than adolescents;

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b. A corporation which in its constitution may hold land;
c. The king, government, society and other persons given power to hold land
under the provisions Diplomatic Privileges (Vienna Convention) Act 1966,
International Organizations (Privileges and Immunities) Act 1992 and
Consular Relations (Vienna Convention) Act 1999; and
d. Other bodies authorized to hold land in accordance with other written laws

When the Federal Government applies for land acquisition from State Government,
a party representing the Federal Government or which holding land as immovable
property on behalf of the Federal Government is the Federal Land Commissioner.
Federal Land Commissioner (PTP) is a corporation that can hold land.
Commissioner Federal Land is an authorized corporation holding land on behalf of
the Federal Government. The existence of PTP is a corporation that may hold land
below section 43 (b) KTN, section 10 Sabah Land Ordinance (Sabah Cap.68),
subsection 13 (5) of the Sarawak Land Code (Chapter 81). Land Commissioner The
Federation is a public officer appointed by the Yang di- Pertuan Agong through
subsection 3 (1) of the Land Commissioner Act Federation 1957 [Act 349]. PTP is
the Director General of Land and Federal Minerals pursuant to section 6 of the
National Land Code 1965.

Land acquisition by the Federal Government is from land disposal by the State
Government. Unique in discussing this aspect of land acquisition and disposal we
are not just hovering over KTN, we need to look at the provisions in the law main
and highest of the country - Federal Constitution 1957. The existence and effect of
KTN is from Clauses 2 and 3 of Article 74 and Clause 4 of Article 76 of the Federal
Constitution. KTN is a legislation enacted for the purpose of standardization of laws
and policies that touch on aspects of land tenure, landlord relations land and
authorities, registration of title, transfer of ownership, mortgage,
Is men and other rights and interests pertaining to land. Land tenure is from land
disposal. Disposal land involves the reservation of land, the granting of leases on
reserve land, issuance of temporary occupation license, issuance of rock material
permit, issuance of airspace permits and ownership.

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State Government through State Authority (PBN) only has the power to dispose of
Government land or reserve land only. Different with other persons or bodies entitled
to be disposed of land to him according to section 43 KTN, the Federal Government
has a position privileges under the Federal Constitution. Article 83 The Federal
Constitution among others states when the Government The federation requires
land that is not state -owned land for public purposes, then after consultation is to
be the responsibility of the State Government to assign title to Federal or public
authorities as directed by the Government Federation. The grant of title to the
Federal Government is as requested, if the grant of title applied for is for ever, then
the right belongs forever without being imposed any restrictions on land use shall
be imposed by the Government State.

This grant of ownership is however subject to the payment of premiums and rent by
the Federal Government according to the current fair market value. The same is true
when The Federal Government wants the land to be owned, so be it the
responsibility of the State Government to take the owned land on a regular basis
forced or under agreement through Federal Government funding. The need for land
acquisition on the part of the Federal Government however there are no pre-
requisites of negotiation about it at between the two governments. In addition to the
granting of property rights, land reservations by the State Government for federal
purposes is also based on the terms and conditions as agreed by both government.
Owned land can also be taken for purposes federation by PBN without a request
from the Federal Government. Grant of land title to the Federal Government by the
Government States can also be based on mutually agreed terms and conditions by
both although there is no such will from Federal government. Under Article 85 of the
Federal Constitution, if the Government The Federation requires land that has been
reserved for the purpose the federation belongs to him, then becomes the
responsibility State Government to assign the land to the Federal in form of holding
in perpetuity without any restrictions land use but subject to payment of premiums
and rent appropriate annual. Payment of premiums by the Government The
Federation in this case is subject to development costs or repairs on land that have
been borne by the Federal Government and land acquisition costs that have been
funded by the Federal Government. Land that has been reserved for federal
purposes may offered by the Federal Government for release to the Government

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 Federal, however it is also subject to payment by the Government State to the
Federal Government based on the market value of the cost development or repair
on land that has been borne by The Federal Government includes the cost of land
acquisition that has been funded by the Federal Government.

Based on what has been stated, the relationship between both governments are
unique and special when it comes to aspects land acquisition and disposal involving
both governments.

3.3 Issues

There are a number of issues and problems that are often obstacles or factors that
cause the land acquisition process to be disrupted, late and sometimes unfinished.
This ultimately has a negative impact on the Federal and State Governments and
even more unfortunately it affects the public money spent on public interest projects.

The need to apply for land from the State Government on behalf of the Federal
Government based on existing and future projects. This is in line with the provisions
of Clause 1 of Articles 83 and 85 of the Federal Constitution. The Federal
Government is often seen as willing in terms of commitment to pay premiums and
other charges imposed during land ownership approvals-always perceived to be
financially strong. There is a tendency on the part of the State Government to ask
the Federal department ministries to apply for land ownership when the need to do
so is not or does not exist. The request from the State Government is partly due to
the efforts or initiatives of the State Government to increase land revenue collection
through land ownership premiums and annual land rent.

There are also situations when a Federal Government ministry or department

applies for land ownership but the application is rejected by the State Government.
The State Government instead approved the land applied for as a reservation under
subsection 62 (1) KTN. More significant is that the land is reserved for federal
purposes such as unity schools or kindergartens but the designated guard officer is
a state official and is usually the State Secretary. If we look at some provisions of

15
the Federal Constitution, this scenario is far deviant and contrary to the principles of
the Federal Constitution, especially Clause 1 of Articles 83 and 85.

There are State Governments that charge a premium on the full market even if the
Federal Government project fully benefits the State Government or provides joint
benefits to the Federal Government and the State Government. Among the reasons
on the part of the State Government is that the project implemented by the Federal
Government is commercial in nature. Examples are rest and recovery (R&R) sites
and petrol station sites on highways. The project is indeed commercial in nature but
it involves a concession agreement between the Federal Government and the
concessionaire as the operator. The revenue to the Federal Government is through
leases to concessionaires but it is in return for the award of a Contract to handle the
management and maintenance of the highway. Through the concession agreement,
the cost of operating and maintaining the highway does not have to be borne by the
Federal Government but if there is a highway expansion or upgrade project, then
the Federal Government will bear the related costs.

Apart from that, the ownership of Government land resulting from the acquisition of
land which is fully borne by the Federal Government is also subject to the full market
price or according to the decision of the 49th MTN. This situation when it happens
will definitely cause problems for the Federal Government because in addition to the
cost of land acquisition is too high, the cost of the project is also under the
responsibility of the Federal Government. If the State Government insists on
demanding premiums on an unreasonable basis and causes problems for the
Federal Government to pay it while the implementation of the project needs to be
expedited for the benefit and convenience of the people, eventually the State
Government and the people will face losses. There are a number of Federal
Government projects that involve exorbitant land acquisition costs that end up in
revenue arrears to the State Government over the years. Arrears of revenue which
are considered debts to the State Government are difficult to be paid by the Federal
Government when the project has been completed and used.

Acquisition of land to implement projects in the state either through land ownership
or land acquisition is an existing burden on Government land such as squatters.

16
 This burden is placed on the Federal Government to resolve whether to provide a
place or area for the settlement and reorganization of squatters or the granting of
consolation money or ex-gratia to the squatters involved. Whatever the solution to
this squatter issue is to use Federal Government funding. This in turn increases the
cost of the overall project on the part of the Federal Government. The power to
exterminate squatters rests with the State Government authorities. The State
Director of Lands and Mines, District Land Administrators and local authorities have
adequate powers under their respective laws such as KTN and the Roads, Drains
and Buildings Act 1974 (Act 133) and the Town and Country Planning Act 1976 (Act
172) to deal with this squatter issue mainly takes enforcement action.

The rental rate for Federal -owned land (PTP) in most states is also high, exceeding
the rental rate for land for residential buildings and some are almost the same as
the land rental rate for commercial buildings. This is due to several reasons, among
them PTP land which is not subject to the use category, express conditions and
restrictions of interest. The position of most of the PTP land which is located in urban
and town type land areas also causes the rental rate of PTP land to be high. In
addition, the perception that the Federal Government is a good paymaster who does
not default on paying annual rent with PTP's position as the landowner who owns
the most land and the highest rent payer in a state is also a factor that drives the
State Government to impose high rental rates on the Federal Government. . This is
like taking advantage because the rental rates are not negotiated with the Federal
Government in detail, most only get policy approval from the National Land Council
(MTN) while detailed approval on rental rates from the MTN is a requirement as
provided in section 101 KTN . What is more significant is that most states impose
rental rates for land owned by PTP without being guided by the resolution decided
by the 53rd MTN meeting in 1997 through MTN Paper No.1/53/1997.

3.4 Problem Solving Proposal

Based on the issues and problems discussed above, it is clear that appropriate
strategies and actions as solution measures need to be formulated and agreed
between the Federal Government and the State Governments. This action is able

17
to prevent issues and problems from becoming more serious because land affairs
are a very important medium as a binder of relations between the two governments.

The function and role of MTN in land affairs needs to be further highlighted and
strengthened. This is the responsibility of the main secretariat, the Ministry of Energy
and Natural Resources (KeTSA) in collaboration with the Department of the Director
General of Federal Lands and Mines (JKPTG). Although in accordance with the
provisions of Clause 5 of the Article 91 Federal Constitution MTN is a platform to
make national policies for the purpose of promoting the control and use of land
throughout the Federation related to mining, agriculture, mining or any other
purpose including the administration of relevant laws, land administration matters in
particular involving relations between the Federal Government and the State
Government shall be given priority.

All MTN policy decisions must be properly documented so that it becomes an easily
accessible reference material as a reference to the relevant authorities because the
source of MTN's authority is the main law of the country, namely the Federal
Constitution, which must be known, especially among administrators. in the
Federation or the State.

At the Federal Government level, ministries and departments need to optimize the
use of existing Federal land regardless of the position of the land under the relevant
user ministry or department. The method of land swapping or cross usage between
the ministry and the user department must be practiced. For this purpose, it is
proposed that the establishment of a Federal Land Use Coordination Committee
chaired by the Chief Secretary to the Government (KSN) or any other senior official
at the Federal level is a necessity. Committee members other than the Director
General of Federal Lands and Mines as PTPs who can be considered are the
Secretary General of the Treasury, Director General of Economic Planning Unit,
Prime Minister's Department (EPU), Director General of Implementation
Coordination Unit, Prime Minister's Department (ICU) and Auditor General .

Federal Ministries and departments should emphasize the need for consultation with
the State Government at the project planning stage. The best official medium for

18
 example is the State Planning Committee which is chaired by the Menteri Besar or
Chief Minister. This consultation requirement is an obligation as provided in section
20A of Act 172. The consultation conducted not only relates to the implementation
of the project, but shall also cover aspects of land acquisition methods including the
imposition of premiums and other related charges that need to be formally agreed
upon in the interest of both- two parties and more importantly the interests of the
people continue to be guaranteed.

To ensure revenue, especially premium for land ownership is obtained, the State
Government may require the Federal Government who submits the application to
pay a certain amount of money at a certain rate or percentage as a premium deposit
at the initial stage of application. This is a step to emphasize the commitment aspect
of both parties dealing in land acquisition. The State Government is assured that the
Federal Government is really serious in submitting the application and the Federal
Government has shown readiness and commitment to own land. With this, the
incidence of premium arrears on the part of the State Government can be reduced.

4.0 CONCLUSSION

In the historical of urban development planning from the begining of human civilization has
proven that the city is an important and dynamic area. The process of urbanization
especially in major cities rapidly developing including physical, socio-economic conditions
and conflict involving the destruction of the quality of the envirenment. Therefore,
appropriate policies and models should be researched and applied in the urban planning
process with emphasis on the economic, social, physical and envirenmental aspect of the
city.

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REFERENCES

1. Road, Drainage & Building Act 1974 (Act 133), Percetakan Nasional.

2. Town and Country Planning Act 1976 (Act 172), Percetakan Nasional.

3. Small Estate (Distribution) Act 1955 (Act 96), Percetakan Nasional.

4. Ismail Omar (2021) Land Scams and Illegal Skewed Portion of Land – the road
ahead is always under construction.

5. Ismail Omar (2021) Towards a Well-being Ummah, Article Compilation –

Strengthening the Land, Housing and Waqf Agenda, Edisi 3, Pertubuhan Profesional Tanah
Malaysia.

6. Ismail Omar (2019), Menuju Ummah Sejahtera, Kompilasi Rencana 1, Mashi

Publication, Kuala Lumpur.

7. Norhayati Umor (2018), Gempur Hartanah – Apa Itu Lot Lidi?,

https://selangorkini.com

8. Shahzaidi (2020), Apa risiko beli tanah lot yang tiada geran individu? https://
shahzaidi.com

9. Majlis Bandaraya Kuala Terengganu (2019), Pemajuan Di Atas Lot Kecil @Lidi.
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10. Webinar Lot Lidi: Apa Yang Anda Perlu Tahu ? (6 Ogos 2020), Jabatan Ketua
Pengarah Tanah dan Galian (Persekutuan).

11. Federal Constitution, International Law Book Services, 2012.

12. Sihombing, Judith., The National Land Code a Commentary, Lexis Nexis, 2010.

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13. Tengku Elias, Mahamood., Sistem Pemegang Adat Dan Undang-Undang Mengenai
Tanah di Negeri-Negeri Melayu, Bintang Dahlia Sendirian Berhad Dan Kejuruteraan Kuasa
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