Imagine waking up one morning to find out the government wants to build a railway right where your home now stands. Can they do that? Your land is freehold, your name is on the title – surely it’s yours forever, right?
This isn’t just a hypothetical – it happens more often than you think. Recently, land acquisition has commenced for the MRT3 Circle Line project, which will involve taking private land to make way for the railway [1].
The truth is, freehold does not mean untouchable. While Article 13 of the Federal Constitution guarantees your right to property, it also allows the government to acquire it – as long as the law is followed and adequate compensation is paid. Legally, all land ultimately belongs to the State (yes, even if your name is on the title as the ‘owner’) [2].
Under the Land Acquisition Act 1960, the State Authority can acquire any land for public purposes, economic development, or even recreational projects [3]. And you cannot really stop the acquisition itself – once the government issues a formal acquisition declaration, the law treats it as final proof that your land is needed [4].
Your fight, if any, is mostly about the amount of compensation, which will be based on your land’s market value at the time the acquisition notice is issued [5]. The government will consider recent sale prices of similar land nearby, [6] loss in value if only part of your land is taken (and the remaining land becomes less useful) [7] and moving costs if you have to relocate [8]. However, you cannot get more compensation just because you do not want to sell, [9] or because the acquisition is urgent [10].
If you don’t agree with the compensation, you have 6 weeks from the award date to object [11].
In the Penang Pan Island Link 2A (PIL 2A) highway project, [12] about 30 parties appealed against the compensation award of over RM1.5 million each. Such matter will then be referred to the High Court, where you will need to submit your own valuation report to justify a higher award [13].
In Blue Valley Plantation Bhd v Pentadbir Tanah Daerah Cameron Highlands & Anor [2023] 9 CLJ 179, the Court of Appeal rejected the landowner’s valuation report because the sale comparisons used were not for similar lands and the valuation did not reflect the land’s actual use – A reminder that valuation must be backed by solid evidence. Once compensation is paid and notices served, [14] the government can enforce vacant possession, sometimes with police assistance if needed [15].
At the end of the day, land acquisition is about balancing the public’s need for development with an individual’s right to property. You cannot stop a lawful acquisition, but you can protect your interests by understanding your rights and acting promptly. In this fast-developing era, could the next piece of land taken be yours?
[1] https://theedgemalaysia.com/node/763035 accessed on 21 August 2025.
[2] Section 40, National Land Code.
[3] Section 3(1), Land Acquisition Act 1960 (“LAA”).
[4] Section 8(3), LAA.
[5] Paragraph 1(1), First Schedule, LAA
[6] Paragraph 1(1A), First Schedule, LAA.
[7] Paragraphs 2(c) and 2(d), First Schedule, LAA.
[8] Paragraph 2(e), First Schedule, LAA.
[9] Paragraph 3(b), First Schedule, LAA.
[10] Paragraph 3(a), First Schedule, LAA.
[11] Section 38(3)(a), LAA.
[12] https://www.nst.com.my/news/nation/2025/04/1198992/land-acquisition-penang-highway-project-done-according-law accessed on 21 August 2025.
[13] Paragraph 2(1), Third Schedule, LAA.
[14] Section 22, LAA.
[15] Section 63(1), LAA.
About the Author
Lee Jia Vin is a Legal Associate at XK Law, bringing a wealth of experience across a diverse spectrum of legal matters. Her expertise spans corporate disputes, industrial relations litigation, adjudication claims, and criminal cases. Jia Vin is committed to maintaining a balanced lifestyle, engaging in activities such as yoga, hiking, swimming, and playing ultimate frisbee to support her well-being.
