The total size of Malay Reserve Land (MRL) in Peninsular Malaysia continued to expand over the past five years, reaching 4.95 million hectares in 2024, compared with 4.82 million hectares in 2020, according to data from the Ministry of Natural Resources and Environmental Sustainability (NRES).

This represents a net increase of more than 135,000 hectares, reflecting ongoing efforts by state governments to gazette and preserve Malay reserve land. The figures exclude Penang and Melaka, as both states do not have Malay Reservation Enactments in place.

The ministry disclosed the information in a written parliamentary reply following a query on the current distribution of MRL by state, recent changes in land area, and measures undertaken to safeguard MRL status over time.

---

Kelantan, Perak and Kedah Hold Largest Malay Reserve Land Areas

Based on data compiled from state land authorities, Kelantan recorded the largest share of Malay reserve land in Peninsular Malaysia, totalling approximately 1.36 million hectares. This was followed by Perak with just over 953,000 hectares, and Kedah with around 809,000 hectares.

Other states with significant MRL allocations include:

• Johor: 561,802 hectares

• Pahang: 444,075 hectares

• Negeri Sembilan: 224,483 hectares

In Selangor, Malay reserve land stood at 164,744 hectares, a relatively modest figure when viewed against the state’s high level of urbanisation and development pressure. This limited availability continues to influence land use planning, particularly for industrial land in Selangor, where zoning flexibility and ownership structure are critical considerations for investors and developers.

Smaller allocations were recorded in Perlis (33,554 hectares) and Kuala Lumpur, where MRL covers just over 1,000 hectares, reflecting the city’s dense urban fabric and mature land market. Terengganu recorded 2,379 hectares of gazetted MRL, alongside broader Malay landholdings exceeding 401,000 hectares.

---

Legal Safeguards Shape Land Use and Development Potential

NRES emphasised that the administration and protection of Malay reserve land are governed by multiple legal frameworks. At the federal level, Article 89 of the Federal Constitution provides special safeguards for MRL, including the requirement that any revocation must be accompanied by the replacement of land of equivalent value.

At the state level, individual Malay Reservation Enactments define the rules governing declaration, revocation, ownership limitations, and restrictions on interests held by non-Malays. These provisions directly affect how land can be transacted, developed, or repurposed.

The National Land Code 1965 (Act 828) further regulates land administration across Malaysia, covering title registration, approvals, and coordination through the National Land Council (NLC) — including the compilation and monitoring of MRL data nationwide.

---

Impact on Urban and Industrial Property Markets

While the expansion of MRL supports long-term land preservation objectives, it also has implications for land supply in high-growth urban areas. In states such as Selangor and Kuala Lumpur — where demand for commercial property in KL, office space in Bukit Jalil, and industrial property in the Subang area remains strong — limited non-restricted land availability continues to place upward pressure on prices.

For industrial users, particularly manufacturers and logistics operators seeking factories in Puchong or well-connected industrial estates in the Klang Valley, land tenure and ownership structure remain key considerations when assessing site suitability and financing viability.

As Malaysia continues to balance land preservation with economic growth, especially in core employment hubs, clearer alignment between land policy, zoning strategy, and development needs will be increasingly important to support sustainable urban and industrial expansion.