From Settlers to Successors: Navigating Inheritance Restrictions on FELDA Land Ownership

Abstract

The development of the Federal Land Development Authority (FELDA) is recognised as a successful effort by the Government of Malaysia in eradicating poverty and developing rural lands into massive plantations for the country’s exports. The land ownership by the FELDA settlers under the FELDA’s scheme is unique and differs from other land ownership, since it is subject to the Land (Group Settlement) Act 1960 (GSA). However, the restriction provided under the GSA that limits the number of landowners has led to complex issues, especially upon the death of the settler, since legal heirs cannot inherit the land according to their entitled portions under the inheritance law. Undoubtedly, the imposed restriction has posed problems in estate distribution, which adversely affects the rights and entitlements of the legal heirs. Hence, this article aims to analyse the issues affecting the interests of the legal heirs of FELDA’s settlers, as well as to identify the right distribution mechanisms that can be proposed as potential solutions. Data gathered is obtained from previous literature studies, and from the interviews conducted with the personnel representatives of authoritative stakeholders, namely, the Estate Distribution Officer from the Estate Distribution Division of the Department of the Director General of Lands and Mines (JKPTG), and an officer of the Land Management Department of FELDA Headquarters. This article indicates that issues of inheritance claims must be thoroughly addressed, and that the execution of a trust deed could help to resolve the issues of estate distribution relating to FELDA lands. Additionally, cooperation from stakeholders is highly needed to ensure the transfer of ownership of FELDA holding title to the next generation can be carried out smoothly, while also achieving the economic and administrative purposes of the stakeholders fairly and equitably.