Abstract
This study aims to identify the key points of the FELDA land inheritance issues and their possible solutions. Land (Group Settlement Areas) Act 1960 was analyzed as it is the main act that regulates FELDA land management. This study discovered that Section 14 limits the land holding to not more than two holders while Section 15 prohibits subdividing or partitioning over FELDA land holding. An administrator is appointed to manage the land on behalf of other heirs and this practice poses risk as the administrator may fail to execute the trust. Hence, inter vivos gift is proposed to address this problem. It was also found that status of FELDA land holding is considered as ‘Conditional Holding’ since it limits the number of registered holders and authorisation to inherit the FELDA land to the second FELDA settlers generation This study concluded that inter vivos gift is legal and this is evidenced from the Section 215, National Land Code 1965 which demonstrates that FELDA land holding can be transferred to the second generation via ‘Form 14A’ at the land offices with the consent from the State Authority and FELDA management as specified in the Land (Group Settlement Areas) Act 1960.
Highlights
In early 1950s, majority of land development was controlled by multinational corporations, while Malayans ( Malaysians) only managed small and uneconomical pieces of land
For Federal Land Development Authority (FELDA) land holding, this study argues that the holding status is a significant element as it determines the legal effect of inter vivos gift
Even though Section 14(2), Land (Group Settlement Areas) Act 1960 allows FELDA land to be jointly held by not more than two holders, this study suggests there should be only a single beneficiary of the FELDA land inheritance through inter vivos to overcome the problem of uneconomic size of land
Summary
In early 1950s, majority of land development was controlled by multinational corporations, while Malayans ( Malaysians) only managed small and uneconomical pieces of land. The major problem of FELDA land inheritance is the restriction in the Land (Group Settlement Areas) Act 1960 which restricts only two registered names as land holders (Kamarudin & Abdullah, 2016; Md Yassin et al, 2017; Mohamad et al, 2014; Mohamad, Muslim, Wan Hassan, Umar, & Mamat, 2019; Mohamed Hasnan, Wahid, Muda, & Mohd Yusuf, 2017). It poses difficulty and dispute among legal heirs in determining who are the most eligible land holder (Suhaili & Rahim, 2018). This study aims to propose inter vivos gift as an alternative method of inheritance by taking into account the impact of conventional inheritance practice to the FELDA settlers and their generations
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