The Differences Between Malay Reserve Land and Bumi Lot In Malaysia

Bumi Lots are open for sale or lease only to Bumiputera. Bumiputera is inclusive of Malays, Sabahan and Sarawakians, and also non-Malay Muslims.

This property type exists in every new development where a certain percentage of the development has to be allocated to Bumiputera.

For example, within the Klang Valley every new development must allocate 30% of its units as Bumi Lots. This regulation was put in place in order to boost the shares of Bumiputera in real estate.

Changing the land title of a Bumi Lot to a non-Bumi lot requires much time (counted in years), and procedures in order to obtain consent from the government. In many cases, most request may able get approval depends on the lawyer’s experience.

However, you can definitely try your luck in requesting for the “release” of your Bumi Lot, so it can be sold to non-Bumis. Here are the steps to follow:

•  Submit an application for consent to transfer. You’d need to provide convincing reasons as to why you’re looking to do this (for example: there’s no demand for your property even after years of advertising) to the Land Office.
• If your application has been rejected, you’d need to submit an appeal to the Land Office.
• Once your application is successful, you would be required to reimburse the developer with the discounted amount from initial purchase.

Now, if you’re a non-Bumi buyer who’s looking to purchase, you’d have to keep in mind that a “released” property does NOT mean that it’s no longer a Bumi Lot!

It actually still is, and a non-Bumi owner of that Bumi Lot would need to reapply for consent from the Land Office should there ever be a need to sell/transfer.

That’s not the end of it, though! Your land title may not be stamped as a Bumi Lot, and is rarely endorsed on a Sales and Purchase Agreement (SPA).

Bumi Lots are the least considered property type among investors, as their market is limited and its price appreciation is considered to be the slowest among all land title types.

Malay Reserved Land

Often mistaken for Bumiputera Lots, Malay Reserved Land titles are actually slightly different.

Where Bumi lots are open for sale to Malays, Sabahan and Sarawakians, and also non-Malay Muslims, Malay Reserved Land; otherwise known as “Tanah Rizab Melayu” ; are only for Malay Muslims.