The Sabah State Assembly has passed amendments to its land laws, closing long-standing legal gaps that have left property buyers vulnerable to fraud and landowners unable to relinquish only part of their titles.

The Land (Amendment) Bill 2025, which introduces two new sections to the Land Ordinance (Cap. 68), was tabled by Assistant Minister in the Chief Minister’s Department Datuk Nizam Abu Bakar Titingan and approved by lawmakers in the state legislative assembly on Thursday.

The changes are designed to modernise Sabah’s land framework and bring it more in line with legislation already in place in Peninsular Malaysia and Sarawak.

At the heart of the bill is Section 88A, which formally introduces the concept of indefeasibility of title—a legal safeguard that protects registered landowners from having their titles challenged, even if the land was previously transferred through fraud, so long as they had purchased it in good faith and without knowledge of the wrongdoing.

“This amendment is necessary to protect bona fide buyers who had no knowledge of past disputes. 

“It protects not only the buyers and owners, but also financial institutions, legal advisors, and the government from legal exposure,” he said when tabling the bills. 

The second major change is the introduction of Section 38A, which allows landowners to voluntarily surrender a portion of their titled land to the state. 

Until now, Sabah’s land law did not allow for partial surrender, creating complications when government-linked companies, federal agencies or private individuals sought to return land for village reserves or when properties were rendered unusable due to erosion.

Nizam said the new provision would streamline the process while ensuring that the remaining land title remains intact. 

“The grant number will not change. Only the land area and corresponding tax assessment will be updated,” he said, responding to concerns raised by nominated assemblyman Datuk Seri Yong Teck Lee.

Kapayan assemblywoman Jannie Lasimbang welcomed the change but called for safeguards to ensure the rights of indigenous communities with ancestral land claims are not affected. 

Bugaya assemblyman Jamil Hamzah, meanwhile, questioned whether the courts would still retain discretion in land disputes involving fraud.

Nizam assured the assembly that judicial powers remain intact. 

“The courts can still decide who is right or wrong.” 

“But this amendment eases the legal process and adds clarity. Sometimes people worry it limits judicial discretion, but the benefits far outweigh the drawbacks,” he said. 

He also issued a call to action to the Lands and Surveys Department, urging them to increase land literacy across Sabah. 

“If the Land and Survey Department doesn’t go down to the kampungs to explain the law, we’ll keep debating the same issues. 

Even our blood pressure rises each time we revisit this,” he said. – April 17, 2025