4 Features of Real Estate in Malaysia

Bumiputera Lot, the Bumiputera Quota, Bumiputera Discount and Malay Reserve Land (Tanah Rizab Melayu).

Property in Malaysia can be confused nowadays.

You will meet lots of terms such as Lot Bumiputera, the Bumiputera Quota, Bumiputera Discount and Malay Reserve Land (Tanah Rizab Melayu).

Here is the elaboration of the true meaning and implications of the terms of the property market.

Bumiputera Quota.

  • Law of Lot Bumiputera Quota was introduced with the aim of increasing the percentage of indigenous dominance in the ownership of the property to at least 30%.
  • The developer is required to allocate at least 30% of the total units (residential and commercial) to bumiputera.

Bumiputera Lot.

  • Only can be owned or purchased by the bumiputera only. This lot is not related to the Malay Reserve Land (Tanah Rizab Melayu).
  • There is no policy or legislation to sell in the secondary market.
  • There will be problems faced by Bumiputera Lot owner when they want to sell the property. The reason is the Land Office will reject the application for transfer of ownership of Bumiputera to non-Bumiputera, even if the unit is not a Bumiputera Lot.

Bumiputera Discount.

  • Purchase by Bumiputera residents are subject to a discount of up to 15% of the original selling price. This percentage varies for each state.

Malay Reserve Land (Tanah Rizab Melayu)

  • It is only can be owned by Malays.
  • The Bumiputera owner is not allowed to rent out the properties on this land to non-Malays.
  • All business carried on this land must be owned by Malays.
  • Publicly traded companies have shareholders must have withered away.


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