H, want to make a thread here, everything and anything under the sun related to Malay Reserve Land or Tanah Rizab Melayu and Bumiputera House & Property quotas.

First off, want to ask about desirability of owning Malay Reserve Land. Is it worth it in terms of investment and also for stay (with view of selling in long-term)?
Usually when you buy, you can't profit a lot since restricted only to a particular group, however prime locations dictate otherwise such as Kampung Baru and certain other Kampung Melayu surrounding KL. So, what are the early signs or indicators of which Malay Reserve Land (MRL after this) will be worth it? is it worth purchasing MRL say in Putrajaya or Nusajaya (Kota Iskandar) etc, with a view of selling in long-term? Or will profit margin be too minimal compared to other investment vehicles? Flipping MRL doesn't usually happen if any so its usually for long-term hold.

As for Bumiputera quotas, is it worth buying from this quota since again reselling is restricted to certain group? So, if looking to flip, almost no chance and won't fetch as high a price as other open or international houses. Then again, what if in the view of buying a Bumi lot, but then apply to get it changed to open status when reselling? It's possible in Selangor under current PR govt and just pay about RM5k if im not mistaken. So, will it be a higher profit margin if do this route in terms of investment (flipping)?

Another question, lets use an example of a house in Malay Reserve land which automatically means bumi lot and much tougher to sell, what would be the desirables that would make it much easier to sell or resell? in terms of demographics, what type of houses, size, features or amenities if any, that would make it desirable in long-term?

Hope the gurus can share some opinions on this. even if not fully experienced with bumi lots and MRL, atleast can provide some info and expertise or experience in situations similar to this?

u need high holding power to wait for:

1. govt change the policy to allow open sales to non bumi
2. wait till all bumi are in love/crazy about prop like chinese.

traditionaly chinese like to accumulate prop or land for:
1. passive income
2. retirement (cash out when old) and hedge inflation
3. children education fund
4. flip to make more $ (wealth)
5. to give to their children (if they hv 10 child so they need to accumulate 10 prop), and the cycle goes on...but the habit stay even they have only 2-3 child. hehe
6. to show off? especially among tycoons
7. holiday, weekend house?
8. for mistresses x 3??
9. for tax (holding co, capital allowances, staff benefits, resort etc)

in old days chinese like to buy land for agri and crop activities (to grow wealth). now changed to prop investments. (but the theory is the same)

investing in malay reserved land and bumi lots is like watching paint dry.

hahaha.. best answer



this is assuming that the bumi are buying the properties for own use in the longer term.
but what are the indicative factors and signs that can show what would be a pre-inlfation of prices, or good investment with view that it will rise in price in the medium term (2-7 years perhaps)? surrounding development / opening up of new factories (job creation=more people) / tourist hotspots (for homestay / rent / etc) to name a few? how to judge what would be a success and what (despite grand projects in pipeline) will be a bust?

thanks very much for your answers and contribution to discussion

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Added on August 10, 2011, 9:23 pmmaybe. if theres money to be had. money is money.
im just curious, if in selangor, can buy a bumi lot at 7% discount off say a rm500k property, thats rm35k discount.
to change the title, possibly only say rm5k + rm2k other expenses, right off the bat can profit rm28k off original price. not taking into account the price will probably rise in due time, its potentially higher profit margin.

This post has been edited by comics_junkie: Aug 10 2011, 09:23 PM

I may be reviving this thread. I got to know that Aman Heights 3 at Bkt Serdang is an MRL.

The area is 85% Chinese... what would be the cons? Can someone enlighten?

I am buying for own stay and had already dumped in the booking fee. I will have to forfeit RM 1000 if I cancel the booking.

Please advise.

OK. I think a lot of people do not understand the differences between Malay Reserve and Bumi lot. These are two distinctly different types of properties.

Malay Reserve land is actually provided for under the National Land Code. These land are specifically for MALAYS, not bumiputera as there are many types of bumis in Malaysia. Once a land is gazetted as Malay Reserve, then it is virtually impossible to convert to an "international" title UNLESS a similar piece of land (international lot) with similar value can be provided for in exchange to convert this land to unrestricted (this is provided for under NLC). Malay Reserve land has too many restriction and hence is very reduced in value. The best example as shown by TS is Kampung Baru where if it has been international, it would be a massive gold mine. Development built on Malay Reserve can only be sold to Malay and hence it might be difficult to garner any impressive values. In future these properties can only be sold to Malay. With so much restriction, it is very often that most people are reluctant to develop Malay Reserve land. I have done it once before and completely failed at Exco level 3 times even though I personally appeal the entire Exco and MB. Apparently it was a lot easier done more than 10 years ago than it is now.

Bumi lot is NOT provided for under National Land Code. There is no specific section in dealing with it. That's why I find it interesting that a land title can be chopped Bumiputera Lot but yet can easily be converted to non-bumi as long as MB signs the approval. In order to convert to non-bumi, you need to advertise in the newspaper for no less than 3 times within 3 months and that there is no interested parties EVEN at a reduced price. Conversion can be done at land office but seriously, I have never attempted to do it myself. I normally used a runner and so far it has been 100% foolproof. The fastest approval is 3 months to my longest is 18 months. My rate of success so far is 100% and I have done over 30 conversions. So I believe conversion should be easy and on hand I am still waiting for approval for 2 properties purchased in March 2012. Do not ask me for my contact for lawyers or runners as they prefer to do business with people there are familiar with. My apologies.

Kiara view is on Malay reserve land near sungai penchala
Every year I see the semi ds there increasing
Initially 1.4 million

example of Malay land making money

Unfortunately it is the only one.

Can avoid then avoid ...

Other places I think taman tun also have Malay reserve
Condos appreciate also

Are you certain they are Malay reserve or Bumi lot? Taman Tun has Malay reserve?

Whole condo Malay reserve nearby penchala

Surely MRL houses can get value appreciated also, normally the project needs to have minimum 50% quota, some 70% ...
So, theoretically, it may not be as high as others, and also other considerations ...

My friend just bought a condo and found out in the document..... from lawyer..


- It can be sold to non-Malay
- as long as the ownership does not changed to a Malay then non-Malay can buy it

- Once the ownership changed to Malay.. it seems the Malay reserve land thingy only enforce.

Can someone enlighten this?

This post has been edited by davidlow7: Jun 2 2012, 12:37 AM

There are alot malay reserved land semi dees at sepang area selling at almost 1 million price tag... Not to forget vacant malay reserve land selling near sg merab bangi at more than RM50/sqft

davidlow7, tq for sharing, the first 2 interpretations are right, the 3rd one... I already shared earlier:
In what you've posted:
Dalam erti kata lain, hakmilik tersebut apabila telah dibangunkan menjadi kondominium kelak boleh dijual kepada bukan Melayu tetapi tertakluk kepada kuota pembelian bumiputera yang disyaratkan oleh Pihak Berkuasa Negeri. Akan tetapi perlu diingat, sekali pemilikan tersebut bertukar tangan kepada Melayu, hakmilik tersebut akan kekal sebagai Rizab Melayu dan tidak boleh diurusniagakan lagi kepada orang bukan Melayu. "

i got a question. i am married with no kids.
i am a bumiputera and my wife is a chinese.
i just noticed i have serious disease lately and how can i transfer my property name to my wife because it was bought under bumiputera.

Very good husband!

Was you I read someone shared that even a "Will" is not allowed.

I'm not fully sure about your case, but I highly think that it can be solved through "appeal" (means that you only need to go through normal Sales & Purchase process) ... Double check with a lawyer with experience dealing with your area of houses (it varies from one state to another, from one to another if high-rise).

For the quota part, I am abit confused... Does it means the condo units in the project has to be sold to the Malays in order to hit the minimum quota?

Yes ... landed houses having the same thing also.
Check key word "bumi quota" to get more information from LYN or elsewhere.