This blog explains the meaning, legal status, and restrictions of Malay Reserved Land (Tanah Rizab Melayu) in Malaysia—plus who can buy it and under what conditions development is allowed.
Introduction
In the Malaysian property market, one unique classification often raises questions: Tanah Rizab Melayu, or Malay Reserved Land.
What is it? Who can own it? Can it be sold or developed?
If you're a land investor, developer, or property buyer, understanding Tanah Rizab Melayu is essential—especially in rural areas, Selangor, Perak, Kedah, Kelantan, and Johor, where large tracts of land fall under this category.
What Is Tanah Rizab Melayu?
Tanah Rizab Melayu refers to land reserved exclusively for ownership and use by Malays, as defined under the Malay Reservation Enactment 1913 (now governed by respective state enactments).
This type of land cannot be sold, leased long-term, or transferred to non-Malays unless it has been revoked or exchanged under strict legal conditions.
Legal Foundation
-
Governed by: State Malay Reservation Enactments
-
Protected under: Article 89 of the Federal Constitution
-
Administered by: State Land Offices and Islamic councils (where applicable)
The law protects Malay economic interests by ensuring a portion of land remains under Bumiputera ownership for generations.
Who Can Own Tanah Rizab Melayu?
Eligible Owners:
-
Malays (as defined under Article 160 of the Constitution)
-
Malay companies (with 100% Malay/Bumiputera shareholding)
-
Islamic institutions approved by the state
? Not Eligible:
-
Non-Malays
-
Foreigners
-
Public listed companies (unless 100% Malay-owned and approved by the state)
Can You Develop Tanah Rizab Melayu?
Yes, development is allowed, but with conditions.
Permitted Development Types:
-
Residential housing (targeted for Malay buyers)
-
Agriculture projects
-
Small industries approved by the state
Approval Required From:
-
State Land Office
-
Local Council (Majlis Perbandaran)
-
Islamic Land Affairs Unit (where applicable)
Important: Developers must ensure the end-buyers are all Malays, or the title cannot be transferred after completion.
Can Malay Reserve Land Be Converted or Exchanged?
Yes, but only under specific conditions:
-
For State Use (e.g., highways, government projects) – the state must replace the revoked reserve land with land of equal size and value.
-
Via Application – for limited projects where conversion is justified, with State Authority approval.
However, this is rare and subject to strict scrutiny.
How Does It Affect Land Value?
| Factor | Malay Reserved Land | Non-Reserved Land |
|---|---|---|
| Ownership Limitations | High | Low |
| Buyer Pool | Limited to Malays | Open |
| Land Price | Typically Lower | Higher |
| Development Potential | Restricted | Flexible |
| Financing Access | More limited | Broader |
Malay Reserved Land usually sells below market rate because it’s only open to a segment of buyers and comes with ownership and development restrictions.
Things to Consider Before Buying or Investing
-
Check title – Look for "Tanah Rizab Melayu" printed on the land title.
-
Confirm buyer eligibility – Is your company 100% Malay-owned?
-
Consult Pejabat Tanah – Get clarity on restrictions, approvals, and allowable developments.
-
Plan for buyer segment – If you're a developer, ensure your units are marketable to Malays only.
Conclusion: Understand Before You Buy
Tanah Rizab Melayu holds cultural and constitutional significance in Malaysia. While it comes with limitations, it also presents affordable opportunities for eligible buyers and niche development potential in growth areas.
At Terra Group, we help clients navigate these zoning and ownership complexities—ensuring your investment meets legal, cultural, and commercial requirements.
Contact us Call Kenneth 017-380 9993 Or WhatsApp our team directly for the latest availability
