MALAYSIA Law and Practice Contributed by: Natalie Ooi and Nicholas Ooi, Ooi & Ooi
Significant transactions in 2024 include the fol - lowing. • Bandar Malaysia land sale – the Ministry of Finance sold the 486-acre piece of prime land in Jalan Sungai Besi, Kuala Lumpur (site of the former Royal Malaysian Air Force base), to KLCC (Holdings) Sdn Bhd (KLCCH), a unit of national oil and gas company Petroliam Nasional Bhd (Petronas), for an estimated MYR12 billion. The sale is probably the larg - est single transaction in the country’s history to date. • IOI Properties Group Bhd’s acquisition of the seven-storey Tropicana Gardens Mall from Tropicana Indah Sdn Bhd for MYR680 million. • Microsoft Payments (M) Sdn Bhd’s acquisi - tion of two pieces of industrial land in Johor – a 123-acre piece of land in Eco Business Park VI in Kulai for MYR402.3 million and a 1.1 million sq ft plot in Pulai for MYR132.47 million. • Another notable data centre-related transac - tion is Sunway Bhd’s sale of 64 acres in Sun - way City Iskandar Puteri, Johor, to Equalbase Pte Ltd for MYR380 million. • Bridge Data Centres Malaysia IV Sdn Bhd acquisition of two pieces of land totalling 67 acres in Plentong, Johor, for MYR337.3 mil - lion from developer Paragon Globe Bhd. • Senibong Island Sdn Bhd’s purchase of 960 acres in Tebrau, Johor, for MYR64 million from S P Setia Bhd. On the real estate investment trust (REIT) front, notable transaction include KIP REIT’s acquisi - tion of DPulze Shopping Centre in Cyberjaya, Selangor, for MYR320 million and the sale of 163 Retail Park in Mont’Kiara, Kuala Lumpur, with a net lettable area of 255,535 sq ft, to Sunway REIT for MYR215 million.
Overall or at least on the macro scale, it appears that inflation and interest rate hikes have not sig - nificantly affected the property sector insofar as large deals are concerned. In Malaysia, there is no specific legislation regu - lating the use of digital instruments or “tokens” for land transactions. The NLC only recognises the registered proprietor listed on the land title as the legal owner. The adoption of proptech solutions by real estate agencies and property developers has increased. The emergence of new proptech firms that appeal to niche market segments has improved user experience by providing person - alised property recommendations and virtual property excursions. 1.3 Proposals for Reform The federal government plans to table the Real Property Development Bill for Peninsular Malay - sia in Parliament in 2025. The existing Housing Development (Control and Licensing) Act 1966 primarily regulates residential properties, but the market now includes a mix of residential, retail and commercial units. The new bill aims to pro - vide a more comprehensive, transparent and accountable framework for the industry. The federal government is also looking to amend the Housing Development (Control and Licensing) Act 1966 in 2025 to enforce stricter measures against developers involved in fraud and abandoned projects. Proposed changes include penalties such as imprisonment for up to three years, fines ranging from MYR250,000 to MYR500,000, or both. In addition, a special government guarantee fund of MYR1 billion has been established to support ailing projects and provide relief to affected buyers.
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