MALAYSIA Law and Practice Contributed by: Natalie Ooi and Nicholas Ooi, Ooi & Ooi
• the buyer takes possession of the property and uses it in a way that may lead to further contamination. Relevant legislation includes the EQA and envi - ronmental impact assessments (EIAs). 2.8 Permitted Uses of Real Estate Under Zoning or Planning Law To ascertain the permitted uses of a parcel of real estate under applicable zoning or planning law in Malaysia, the following steps and consid - erations are typically involved. Consult Local Authority’s Town Planning Department The primary source of information regarding zoning and planning laws is the local authority or municipal council (Kuala Lumpur City Hall, Pen - ang Island City Council, etc). Each local authority has its own set of zoning regulations, which may differ based on location. You can approach the relevant local authority to request information regarding the zoning clas - sification of a land. The zoning plan will outline what types of developments are permitted on that land (residential, commercial, industrial, mixed-use, etc). Zoning regulations are typically available in the form of planning laws, development orders or local plans, which detail land use and other plan - ning restrictions. Review Local Plan and Development Order Malaysia has a system of “Local Plans” and “Development Orders” that dictate land use and development controls for specific areas. Local Plans are prepared by the local authorities to guide land development and zoning, and these plans will specify:
• the zoning classification of the land; • the types of permissible land use within each zone; and • setback requirements, building height and other design constraints. Land Title Search and Restrictions In addition to zoning laws, the land title itself may contain restrictions or conditions that limit the types of development that can occur on the land. Consult a Town Planner or Property Consultant It is common to consult with a professional town planner and lawyers to help interpret zoning regulations, review development feasibility, and provide advice on compliance with local plan - ning laws. Development Agreements with Public Authorities It is possible to enter into specific development agreements with the relevant public authorities in Malaysia to facilitate a project. These agree - ments are generally negotiated between the developer (private party) and the local authorities (government), and typically include the following components: • specific land use; • infrastructure and utility provisions; • development conditions and approvals; • incentives or support; • community engagement or environmental mitigation; and • compliance and penalties. 2.9 Condemnation, Expropriation or Compulsory Purchase In Malaysia, compulsory acquisition of private - ly owned land by the relevant governmental
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