M A L A Y R E S E R V A T I O N

INTRODUCTION
Malay Reserve Land (MRL) refers to special
category of land situated within the territorial
boundaries of each state in Peninsular Malaysia
which can be owned only by Malaysia.
The Purpose
Preamble of MRE (11!) "#an Enactment to amend
and consolidate the law relating to Malay
Reservation and to provide for securing to Malays
their interests in land#.
THE LAWS
$he law concerning the MRL in Peninsular
Malaysia not including Malacca and Penang) can
be divided into "
Law %efore Merde&a
(a) 'n single uniform law &nown as (ederated
Malay )tate Reservation Enactment (*ap 1+,)
enacted in 11! and amended in 1!! and
subse-uently updated from time to time. .t is
applicable to )elangor Pera& Pahang / 0.).
(b) 1 separate Malay Reservation Enactment for
each state of 2(M)(Perlis34edah3 4elantan
$erengganu / 4elantan).
$here are two types of prohibition provided by
these laws"
(a) Prohibition against disposition by the )5
(b) Prohibition against private dealings
67ever the present Malay Reservation legislation in
all Malay )tates has adopted the policy of providing
for e8ceptions to the prohibitions by permitting
alienation and dealings in favor of certain specified
persons and bodies with the approval of the Ruler
in council. (eg. s. 19 / ,
nd
)chedule of *5P 1+,
*ertain institutions can ta&e MRL as security for
loans granted by them.)
Law after Merde&a
5fter Merde&a3 the (ederal *onstitution provides
more strict provision as regards to MRL. 5. !:(1)3
5.: and 5. 11! provides that any change in MRL
re-uires ,7! ma;ority in both the houses in (ederal
level and also )tate level3 and concurene of the
*onference of Rulers.
ESSENTIAL CHARACTERISTICS
1) Restriction !inst "iention
$he MRL Enactment is an e8ample of a special law
overriding or prevailing a general law (0L*).$he power
of )5 to alienate )tate Land to such person3 bodies or
corporation is vested u7s. +! 0L*. 67ever as far as
MRL )5 is re-uired under the Enactment to alienate the
land only to Malay.
(,) Restriction !inst #e"in!
<ith regard to alienated lands3 all owners are
empowered under the *ode to deal with their lands e.g.
transfer3 charges3 leases etc. %ut for MRL dealings are
permitted amongst Malays only.
(!) $ui"t in #e%ice&
5ll Enactment now contain provision whereby certain
named financial institution listed in the )chedule to the
Enactment are deemed to be =Malays#3 enabling them to
receive Malay reserve lands as security for loans
granted by such institutions to their Malay owners.
s. 1 of MRE (4edah) / s. 195 of MRE (Perlis)
(+) Roo' (or re%oction
Ruler in *ouncil possess the ultimate power to alter the
boundaries of any MRL or to revo&e any declaration of
MRL either wholly or partly or to include in MRL which
has been e8cluded.
(1) Other !ener" restrictions
> on creating a trust of MRL in favor of non
Malay
> on dealing by non>Malay attorneys
> on lodging caveat by non Malay
> attachments in e8ection
> vesting in the official 5ssignee on
ban&ruptcy
(?) Snctions (or in(rin!e'ent
5ll the Enactments provides that
(a) all dealings3 disposals and all attempts any MRL
in contravention of the law shall be null / void.
(b) 5ll instruments purporting to vest in any person
any title or interest in such lands or to give effect
to such dealings shall be null / void.
(9) Re(erence to the Ru"er in Counci"
5ll enactment provide that in case of doubt as to"
(a) whether a person is =Malay# for the purpose of the
Enactment (eg. if the sub;ect is dumb but his
mother is Malay and his father is .ndian)
(b) as to the mode of operation of the Enactment
(c) as to the manner in which the Enactment is to be
carried into effect.
$he matter shall be referred by M% to the Ruler in
*ouncil for decision. $he decision of the R.* is final /
cant be -uestioned.
Hanisah v Tuan Mat
CASES ON MALAY RESERVE LAND
)oo S* Lee % Ooi Hen! Wi +,-.-) , ML/&
P entered into an agreement with @ to buy shoplot. @uring the agreement
the lot was part of MRL. $he term of the agreement states that the sale
was sub;ect approval from Ruler in *ouncil. $he sale was a valid sale...t
was further held that only attempts to deal in reservation land contrary to
the provisions of the Enactment would be null / void. s. 1! (5) MR
Enactment allows transfer or transmission of MRL to non Malay on
approval by the Ruler in *ouncil.
Ho 0io1 Ch* % Ni1 Aishh
0i& 5ishah is the registered proprietor of the MRL in 4ota %ahru. )he
charged her land in three occasion to the 5ppalent and failed to pay bac&.
5pp summons her and intended to seel the land in public auction. 5mong
aothers she claimed that the aaplicantAs right to enforce the charges are
unenforceable by virtue of 4elantan MRE beco8 the applicant is not a
Malay within the meaning of the Enactment.
6eld" a charge of a MRL in &elantan is an interest in land and therefore
constitutes a breach of s. 9(.) of the Enactmenet. 0ull / Boid.
T $ri' Sin!h % Pe!2i Pent#3ir Pes1 M"*si
$he issue relates to the legality of creating a lien by way of the deposit a
MRL title with a person who is not a Malay as security for a loan . $he
court held in o3iter that a charge could not be an interest in the land as
the chargee was not given any interest in the land as to the en;oyment and
use of it.$he court disagree with the above case.
()ome writer observed this view is preferable boce8 giving charge only
create an interest and not ownership as such the land still remain in
MalaysA hand.)
Moh'e# Is 4 Ors % A3#& 5ri' 4 Ors
MRL may loses its character only by way of an e8press revocation( not by
implied revocation) and notified in the CaDette. $o hold that a MRL loses
its character by reason of converting it from agriculture land to mining land
is not correct.
Wn Is'i" 4 Sen! Lin! S#n&$h&# % Mus 3& Mt /ni 4 Anor
6,--789CL/ +2ho is M"*)
Hnish % Tun Mt +,-:7)
5 chinese female born in )ingapore was adopted by a Malay family in
4elantan . )he was brought up as a Malay girl. $he adopted father
transferred , piece MRL on her name.$his was challenged by the
Respondent in 6*. 6e claim that the transfer was null / void she was not
a =native of 4elantan#. $he trial ;udge referred to the )tate E8ecutive
*ounsil u7s. 1! for their rulling and tin reply the )tate )ecretary certify that
she was not a native of 4elantan. 5ccordingly the trial ;udge upheld. 'n
appeal to (* held" a
(a)llowing the appeal held that the appelent failed to discharged the onus
of satisfying the court that the appellant was not a Malay and not a native
of 4elantan.
(b) 'nly the Ruler in *ouncil can certify and not the )tate E8ecutive
*ouncil. $hey only advise the Ruler.
H; H'i# $& Ari((in 4 Anor % Mh'u# 6,-:.8 9 ML/
Mahmud a registered proprietor of MRL sold his land to a )iamese lady.
$he agreement was e8ecuted and she too& possession but the land was
not transferred on her name. Later she sold to a Malay man (appellenat.
$he administrator of the )iamese lady sued the administrator of Mahmud
fro specific performance. $he issue is whether the sale by Mahmud to
)iamese Lady enforceable under MRE (4edah). 6eld" the sale is void. (*"
Boid ab initio and it could not be enforceable by the purchaser nor by the
purported purchaser even he is a Malay.
I#ris % N! Ah Sie2 +,-<=)
5 Malay owner had charged his land to a non Malay to secure a loan3
subse-uently3 he had e8ecuted a power of attorney in favour of the
chargee and also e8ecuted another agreement whereby he convented that
the power of attorney would not be revo&ed as long as the loan had not
been fully repaid. (inally the owner revo&ed the power of attorney before
full payment was made. *'5 $homas *E held" the whole transaction
represented by the power of attorney and agreement was null and void.
4apoor )ingh v 6;. .brahim (prohibition of the attachment in e8ecution of
any MRL)P obtained ;udgement against @ which had remained
unsatisfied. $he P applied to court for an order to appoint receiver in
respect of @As MRL. 6eld the appoint was prohibited.
MEANIN0 O) >MALAY?
(1) 5rt 1?F(,) (* " .slam3 habitually spea&s
Malay and practises Malay customs and born in
Malaysia 7 )pore before merde&a or domicile in
Malaysia7)pore on Merde&a day.
(,) s. , (M) *ap 1+, G person belongs to any
Malayan race3 habitually spea&s Malay language
or any Malayan language and professes the
Moslem religion.
(!) s. ! (4elantan) G a person belonging to any
Malay race who spea&s any Malayan language
and profess Mohamed Religion and shall
includes Ma;lis 5gama .slam and the official
administrator of trustee of estate7deceased.
s. (4elantan) G MRL can only be alienated to
=native of 4elantan# it does not includes =Malay#
as a determining factor.
(+) s. , (4edah) > a person professing the
Muslim religion and habitually spea&s Malay
language of whose parents one at least is a
person of Malayan Race or 5rab descent.
(1) s. , (Perlis) > a person belonging to any
Malayan race or person of 5rab descent who
habitually spea&s the Malay language or any
Malayan language and profess the Muslim
religion.
(?) s. (Eohore) " a person belonging to Malay
or Malaysian race 3 habitually spea&s Malay
language or any Malaysian language and
profese .slam3 it includes bodies mentioned in
scdule ,3 even the body where the members are
not 1FFH Malay.

Tn Hon! Chit % Li' 5i' Wn
$he land in issue was under a *hinese registered owner
before 1!F. .n 1!F the area was CaDetted as MRL. .n
11F the land was sold to the 5ppellant. $he appllent then
entered a ;ual ;an;i transaction with R (*hinese) . <hen he
fail to redeem the land3 the R becomes the owner of the
land.
$he trial court held that when land in a Malay reservation
is registered in the name of non Malay who ac-uired it
prior to the creation of the reservation he can transfer or
charge it to any non>Malay and any subse-uent transfer
or charge to non>Malay can be effected w7out the approval
of the Rular in *ouncil 3but once a non>Malay registered
proprietor transfer or charge it to a Malay then the Malay
registered proprietor cannot transfer of charge it to a non>
Malay save with the approval of the Ruler in *ouncil.
THE )UTURE O) MALAY RESERVE LAND
PRO$LEM
(1) $he economic value of the MRL is lower
compared to other land. .t is due to the strict
provision as to the method of dealings which is
confined to only Malays or if to non Malays
sub;ect to approval by R.*.
(,) 5 big area of MRL situated deep in remote
area . $hus it is difficult for development.
(!) @iversity and disparity in define =Malay#
almost in all the MRE has been criticiDed.
(+) $he intention to create MRL is to uplift the
well being of the Malay. 67ever there is no
follow up measures ta&en to materialiDe this
intentions.
(1) $he Policy only managed to create a Malay
landowning society but it does not create an
income earning society. $hus we can observed
that the status of MalayAs with MRL compared to
(reehold owners.
(?) $he Malay owners does not get special
privillege in matters of -uit rents and other forms
of revenue payable to the )5.$hey don#t get
priority when they wish to develop their
agricultural lands into housingpro;ects and
finally they cannot compete in the mar&et.
(9) )ome .slamic value such as suspension of
land ta8es due to unavoidable circumstances
was not implemented.
PROPOSALS@
.f we intend to continue with this privillege3 we
need some reforms as follow"
(1)$here must be some uniformaty in the law
among all the states.
(,) 'wners of MRL should not be hindered in
any way if they wish to offer their lands as
security for any form of financial assistance or
accomodation which they may see& from any
financial institution whether government or
private.
(!) .n case of foreclosure3 a consent must be
obtained from )5. )5 only give consent to sell
that land to a Malay buyer.
(+) 5 less rigid attitute must be adopted when
owners ma&e formal re-uest to revo&e MRL to
the )5.