Bumi Lots are units of land or property, which can only be purchased and owned by Bumiputeras. According to the NEP (New Economic Policy) report, the Bumiputera Lot or Bumi Lot quota was created to increase the percentage of Bumiputera ownership in Malaysia.

Beginning in 1971, property developers in Malaysia must allocate at least 30% of the total unit numbers, regardless of whether they are residential or commercial properties, to Bumiputeras.

However, all land matters under Malaysian law fall under the jurisdiction of State Authorities. Therefore, the Bumi Quota may differ from state to state. For example, the Federal Territory of Kuala Lumpur has the Bumi Quota set at 30%

What is Bumi Discount?

Each state and city council (PBT – Pihak Berkuasa Tempatan) sets its own limit, based on:

• Land zoning (Residential, Commercial, Mixed-Use)

• Location (Urban vs Suburban)

• Public transport proximity (TOD zones)

• Affordable housing %

• Amenities & traffic impact

How to sell Bumi Lot to non-Bumi?

If you want to know if a Bumi Lot can be sold to a non-Bumis, a short answer is “Yes, you can”. However, it will not be easy. The Bumi Lot will need to be ‘released’ and this often takes years and involves many procedures. In many cases, most requests are also rejected.

An application for consent to transfer can be submitted to the Land Office. You’ll need to provide convincing reasons, such as no demand for the property even after years of advertising. If the initial application is rejected, you can submit an appeal. If it’s successful, the buyer would be required to reimburse the developer with the discounted amount from the initial purchase.

Can Bumi Lot be converted to a non-Bumi Lot?

An important detail to keep in mind is that a “released” Bumi Lot does not make it a non-Bumi Lot. Once the non-Bumi owner of the Bumi Lot chooses to sell to another non-Bumi, he will need to apply again for the Land Office’s consent for the transfer of ownership.

How to check Bumi Lot status?

Buyers who are looking to purchase properties should always ask developers if their properties are endorsed as Bumi Lots or are on Malay Reserve Land. Always check with the Land Office for various matters regarding the property before you decide to purchase