LAND DEVELOPMENT ACT 1956

Land Development LAWS OF MALAYSIA REPRINT Act 474 LAND DEVELOPMENT ACT 1956 As at 1 November 2018 PUBLISHED BY THE COMMISSIONER OF LAW REVISION, MALAYSIA UNDER THE AUTHORITY OF THE REVISION OF LAWS ACT 1968 2018 1 2 Act 474 Laws of Malaysia LAND DEVELOPMENT ACT 1956 First enacted … ... ... ... … 1956 (Ord. No. 20 of 1956) Revised … … … … … 1991 (Act 474 w.e.f. 30 September 1991) PREVIOUS REPRINTS … ... ... ... 2001 Second Reprint … ... ... ... 2006 First Reprint Land Development LAWS OF MALAYSIA Act 474 LAND DEVELOPMENT ACT 1956 ARRANGEMENT OF SECTIONS Part I INTRODUCTORY Section 1. 2. Short title and application Interpretation Part II FEDERAL LAND DEVELOPMENT AUTHORITY Establishment, Duties and Powers 3. Establishment, duties and powers of Authority 5. Disposal of capital assets 4. 6. Powers of the Minister in relation to the Authority Additional functions of the Authority The Land Development Fund 7. Establishment of Land Development Fund Financial Provisions 8. Duty to conserve Fund 10. Powers of expenditure 9. 11. 12. 12a. 12b. 13. Reserve fund Gifts Borrowing powers Power to issue stock, etc. Bank guarantee Investments 3 4 Laws of Malaysia Act 474 Accounts and Audit Section 14. Accounts and audit Incorporation, Constitution and Procedure 15. Constitution of Authority 17. Salaries and fees payable to members of Authority 16. 18. 19. 20. Common seal Committees Members not to vote on matters in which they are interested Quorum and proceedings of Authority Officers and Servants 21. Powers and duties of Chairman 23. Power to appoint and dismiss officers and servants 22. 24. 25. Appointment of a General Manager, officers and servants Authority to frame regulations governing conditions of service Provident fund, pensions and superannuation schemes Contracts and Delegation 26. 27. Contracts and execution of documents, etc. Delegation Annual Report 28. Annual report Regulations 29. Regulations Part III LOCAL LAND DEVELOPMENT BOARDS Establishment, Duties and Powers 30. 31. Establishment, duties and powers of boards Directions to boards Land Development Funds Section 32. Establishment of fund 33. Balancing of revenue accounts 34. Reserve fund 35. Powers of expenditure 36. Borrowing powers and gifts 37. Investments Accounts and Audit 38. Accounts and audit Constitution and Procedure 39. Constitution of boards Officers and Servants 40. Appointment, etc. of officers and servants Annual Report 41. Annual report Part IV CORPORATIONS 42. Power to establish corporations Part V REGULATION AND INCORPORATION OF BOARDS AND CORPORATIONS 43. Regulation and winding up 44. Incorporation 5 6 Laws of Malaysia Act 474 Part VI LOANS Loans by Authority or Board Section 45. Charge on property and priority of loan 47. Repayment of loans 46. 48. 49. 50. 51. 52. 53. 54. 55. 56. Interest on loans Suspension of payment and power to extend time, compound or release Payment of loan before due date Enquiry as to application of moneys lent Order upon such enquiry Misapplication of loan Enforcement of securities Offences in respect of loans Consent for prosecution Burden of proof Part VII MOVABLE AND IMMOVABLE PROPERTY 57. Powers as to movable and immovable property 59. Compulsory acquisition of land 58. Malay Reservation or Native Land Part VIII GENERAL 60. Power to employ agents 62. Powers of local authority 61. 63. 64. 65. 66. 67. 68. Compromise Exemptions Officers to be deemed public servants Public authorities protection Protection of Authority, board and corporation Minutes receivable in evidence Saving Land Development 7 LAWS OF MALAYSIA Act 474 LAND DEVELOPMENT ACT 1956 An Act to provide for the establishment of a Federal development authority and local development boards to promote and carry out projects for land development and settlement, for making funds available therefor, and for purposes connected therewith. [Peninsular Malaysia—1 July 1956, L.N. 205/1956; Sabah and Sarawak—1 January 1968, P.U. 645/1967] Part I INTRODUCTORY Short title and application 1. (1) This Act may be cited as the Land Development Act 1956. (2) This Act shall apply throughout Malaysia. Interpretation 2. In this Act, unless the context otherwise requires— “Chairman” means the Chairman of the Authority, and includes any temporary Chairman appointed under section 15; “corporation” means a corporation established under section 42; “development area” means any area in and for which a local land development board has been established; “Federal Land Development Authority” or “Authority” means the Federal Land Development Authority established under section 3; 8 Laws of Malaysia Act 474 “financial year” means the period of twelve consecutive months— (a) in the case of the Authority, from the first day of July in each year or from such other date as the Authority may from time to time determine; (b) in the case of a board, from the first day of April in each year or from such other date as the State Authority may from time to time direct; “Fund” or “Land Development Funds” means the Land Development Fund established under section 7; “local authority” means any municipality or other local government authority established in accordance with any written law; “local land development board” or “board” means a local land development board established under section 30; “member” or “member of the Authority” means any member of the Authority appointed under section 15, and includes the Chairman, a temporary Chairman and any temporary member; “Minister” means the Minister charged with responsibility for the Federal Land Development Authority; “State Authority” has the same meaning assigned thereto in the National Land Code [Act 56 of 1965]; “Treasury” shall have the meaning assigned to it under the Financial Procedure Act 1957 [Act 61]. Part II FEDERAL LAND DEVELOPMENT AUTHORITY Establishment, Duties and Powers Establishment, duties and powers of Authority 3. (1) There shall be established for the purposes of this Act a body, to be known as the Federal Land Development Authority. Land Development 9 (2) The Authority shall have the following duties: (a) to undertake and carry out land development projects; (b) to promote and assist in the investigation, formulation and implementation of projects for development, settlement and management of land in the Federation; (c) to promote, stimulate, facilitate and undertake economic, social, residential, agricultural, industrial and commercial development and management and other ancillary activities and services in any area for which the Authority has been vested with the power to carry out land development projects or any other area which has been acquired, purchased, leased by or alienated to or is otherwise held or enjoyed by the Authority or its corporations or companies for the performance of its functions; (d) to undertake and carry out such activities as may assist in the modernization of the agricultural sector in the area mentioned under paragraph (c); and in particular activities relating to the production, utilization, processing and marketing of crops, livestock and fresh water fisheries; (e) to assist, guide, advise, manage, administer and coordinate economic, social, residential, agricultural, industrial and commercial activities whether within or outside the area mentioned under paragraph (c). (3) The Authority shall have power, for the purpose of the discharge of its duties under subsection (2)— (a) to carry on all activities the carrying on whereof appears to it to be requisite, advantageous or convenient for or in connection with the discharge of its said duties including the provision of infrastructure and social amenities and other ancillary services; (b) to promote and co-ordinate the carrying on of any such activities by boards, corporations, companies and other bodies or persons and to give assistance to such boards, corporations, companies and other bodies or persons including financial assistance, by way of grant, loan or otherwise; 10 Laws of Malaysia Act 474 (c) with the approval of the Minister to enter into a partnership, joint venture, undertaking, co-operation in any manner, an arrangement for the sharing of profits or to carry on such activities in association or otherwise, with any person, public authority, corporation, company or other body (including the Government of the Federation or any State Government) carrying on or engaging in any such activities and to take or otherwise acquire shares and securities of any such public authority, corporation, company or other body, and to sell, hold on, reissue with or without guarantee, such shares and securities or otherwise dispose of or deal with them; (ca) with the approval of the Minister, to establish or promote the establishment of companies to carry on or engage in any activity which has been planned or undertaken by the Authority (including the taking over of the function of a corporation which has been wound up and dissolved under section 43); (d) to make loans, subject to such conditions as the Authority may think fit, in accordance with this Act; (e) to do anything and to enter into any transaction (whether or not involving expenditure, borrowing in accordance with this Act in that behalf, granting of loans or investment of money, the acquisition, use and disposal of any movable or immovable property, including rights) which in its opinion is calculated to facilitate the proper discharge of its functions or is incidental or conducive thereto. (4) The Authority shall not promote, carry out, assist or participate in any such project or activity as is referred to in this section in the State of Sarawak, until the concurrence of the Yang di-Pertua Negeri has first been obtained, and in any other State, until such measures for consultation with the Government of such State or with any Department of the Federal Government as appear to the Minister to be appropriate have been taken. (5) The Authority may, with the approval of the Minister— (a) establish, maintain and administer or continue to maintain and administer and subsequently wind up, such funds into which shall be paid sums contributed by the persons participating in the land development and settlement Land Development 11 projects carried out by the Authority, sums donated by any person or body and such other sums as may be determined by the Authority; and (b) utilize the funds mentioned under paragraph (a) for the purpose which the Authority may consider necessary for the welfare and benefit of the persons, and the dependants of the persons, participating in the land development and settlement projects carried out by the Authority. Powers of the Minister in relation to the Authority 4. (1) The Minister may, after consultation with the Authority, give to the Authority directions of a general character and not inconsistent with this Act as to the exercise and performance of its duties and functions in relation to matters which appear to him to affect the interests of Malaysia and the Authority shall give effect to all such directions. (2) The Authority shall furnish the Minister with such returns, accounts and other information with respect to its property and activities as he may from time to time require. Disposal of capital assets 5. The power conferred on the Minister by section 4 to give directions to the Authority shall extend to the giving of directions— (a) as to the disposal of capital assets; or (b) as to the application of the proceeds of such disposal, notwithstanding that the directions may be of a specific character: Provided that no such direction shall, so long as any sum borrowed by the Authority in accordance with this Act remains outstanding, be given except with the concurrence of the Treasury. Additional functions of the Authority 6. In addition to the duties imposed by th