KUALA LUMPUR, Feb 24 — Debates over land ownership and eviction rights have intensified recently as disputes arise between long-standing occupants, registered landowners and authorities.
The Kampung Jalan Papan conflict in Klang — where decades of occupation ended in demolition orders and public protests — reflects these tensions.
Similar governance challenges have played out in disputes involving temple compounds across the Klang Valley, where legal ownership and social expectations have diverged.
These cases reveal a structural tension in Malaysia’s land system — communities may exist for decades, seek regularisation or renewal, yet not legally own the land.
In Malaysia, land ownership and occupation are governed primarily by the National Land Code 1965, which establishes how land is granted, owned, occupied and reclaimed.
While many Malaysians are familiar with terms such as “freehold” and “leasehold,” confusion still often arises when informal settlements, temporary licences or long-term occupation are involved.
Here is a breakdown of how Malaysia’s land system works and types of land ownership in the country.
Freehold
Freehold land refers to ownership granted in perpetuity, meaning there is no expiry date attached to the title.
Owners enjoy the strongest form of property rights under Malaysian law.
They may sell, transfer, lease, mortgage or pass the property to heirs without needing renewal from the state.
However, freehold ownership is not absolute.
State authorities retain powers under land acquisition laws to compulsorily acquire land for public purposes — such as infrastructure or development — provided compensation is paid.
Because tenure is permanent, freehold properties generally command higher market value and are viewed as lower risk by banks and investors.
Leasehold
Leasehold land remains owned by the state but is leased to individuals or companies for a fixed period, typically 30, 60 or 99 years.
During the lease period, the registered holder enjoys ownership rights similar to freehold owners, including the ability to sell or transfer the property.
However, once the lease expires, the land reverts to the state unless renewal is approved and a premium is paid.
Renewal is not automatic and depends on state authority discretion and planning considerations.
As the remaining lease shortens, property values may decline and financing can become more difficult, particularly when leases fall below 60 years.
Strata titles
Strata titles apply to individual units within multi-storey developments such as apartments, flats and condominiums.
Owners legally own their individual parcels while sharing ownership of common property such as lifts, corridors, parking areas and facilities through a management corporation.
Importantly, strata properties inherit the tenure of the underlying land — meaning a condominium may be either freehold or leasehold depending on the master title.
Strata ownership also comes with statutory obligations, including maintenance charges and collective management responsibilities.
Temporary Occupation Licence (TOL)
The Temporary Occupation Licence (TOL) is a term frequently raised in land disputes, including in cases such as Kampung Jalan Papan.
A TOL does not confer ownership and does not create permanent land rights.
Instead, it is a short-term permit issued by the state allowing individuals or businesses to occupy or use state land legally for a limited purpose and duration, usually renewed annually.
A TOL:
- Grants permission to occupy land temporarily, not ownership.
- Can be revoked or not renewed at the state’s discretion.
- Generally prohibits permanent structures unless specifically allowed.
- Cannot be transferred or inherited like titled land.
- Has compensation rights that are limited if the licence ends.
Historically, TOLs were often issued to regularise settlements or allow agricultural or residential use while long-term planning decisions were pending.
Because licence holders may remain for decades through repeated renewals, many communities develop the expectation of permanence — even though legally the occupation remains temporary.
It is due to this gap between perceived security and legal status that has been central to several redevelopment conflicts nationwide.
The temporary occupants of the land are often called “squatters”.
Do “squatters” have rights?
A major issue in land disputes is whether long-term occupation can create ownership rights.
Under Malaysian law, land rights derive from registered title, not duration of stay.
Legal principles under the National Land Code established that:
- Adverse possession is not recognised — occupation does not grant ownership rights.
- Squatters have no legal land rights, and courts consistently affirm registered titleholders’ ownership.
- Unauthorised occupation may constitute an offence and can be penalised.
- Long occupation alone carries no legal weight; time does not convert illegal occupation into lawful title.
Landowners may request local authorities to act where private eviction is impractical.
Enforcement may proceed under the Emergency (Clearance of Squatters) Regulations 1969, which allow officers, after seven days’ written notice, to enter land and demolish illegal structures.
Although squatters or licence holders lack ownership rights, authorities sometimes pursue relocation or housing solutions as policy measures to reduce social hardship.
These arrangements, however, are political or administrative decisions — not legal entitlements.
The Kampung Jalan Papan land issue is not an isolated matter, instead it is closely related to recent disputes involving certain temples.
Many temples were built decades ago on estate or government land during periods when land administration was less formalised.
As land ownership later changed hands or redevelopment intensified, conflicts emerged.
Legally, ownership remains with the registered landowner rather than the occupant, regardless of religious or historical significance.
Authorities have repeatedly stressed that such disputes are fundamentally land matters governed by property law, even when they carry religious sensitivities.
Similarly for Kampung Jalan Papan in Klang, the dispute illustrates how these legal principles operate in practice.
The settlement process began decades ago and many residents later occupied the land under TOL issued by authorities.
Over time, the community evolved into a long-established village with permanent homes and multigenerational families.
However, the land was eventually transferred for redevelopment and later came under private ownership.
When redevelopment plans proceeded, court rulings affirmed the rights of the registered landowner, allowing eviction and demolition despite residents’ long occupation and earlier expectations of replacement housing.
For residents, living on the land for decades created a sense of permanence, but for the law, ownership remained tied strictly to the registered title.
Moving forward
Malaysia’s land framework rests on a clear legal principle — ownership comes from registered title granted by the state.
Disputes such as Kampung Jalan Papan and recurring temple land cases show that while the legal rules are clear, conflicts often arise from the human realities surrounding long-established communities facing modern redevelopment.
Malay Mail – Malaysia
