Can a foreigner purchase land or property in Sarawak

Can Or Cannot? : Purchase of Immovable Property in Sarawak by a FOREIGNER

The law governing the immovable property in Sarawak is different from West Malaysia. Immovable property in Sarawak is governed by the Sarawak Land Code, whereas the immovable property in West Malaysia is governed by the National Land Code.

As the state of Sarawak is the largest state in Malaysia, Sarawak has a very great potential for development and this attracts the investment of more and more foreigners in Sarawak. As such, it is pertinent for us to identify whether the foreigner can purchase the immovable property in Sarawak.

1. Can a foreigner purchase vacant land in Sarawak?

   Generally speaking, a foreigner cannot purchase vacant land in Sarawak as pursuant to Section 13A of the Sarawak Land Code. However, there are exceptions to this general rule, in which that a foreigner cannot purchase vacant land in Sarawak, unless that:

   1. the land fall under the Special Development (Exemption and Prohibitions of Foreign Interests) Areas as pursuant to Section 13E (2)(a) of the Sarawak Land Code; and
   2. the land fall under the exception of Section 13B , 13C, and 13D of the Sarawak Land Code.

2. Can a foreigner purchase high rise property such as Apartment and Condominium in Sarawak?

   A foreigner can purchase high rise property such as Apartment and Condominium in Sarawak as pursuant to Section 13 (E) (2) (b) of the Sarawak Land Code.

3. Can a foreigner purchase landed property in Sarawak?

   A foreigner can purchase landed property in Sarawak as pursuant to Section 13 (E) (2) (c) of the Sarawak Land Code.

It is important to take note that a foreigner can purchase Sarawak’s high rise property and/or landed property under the “Malaysia My 2nd Home Campaign”1, on the condition that the minimum value of the property shall not be less than RM300,000.00 (for property outside of Kuching) or RM350,000.00 (for property within Kuching). This condition is officially implemented by the Government vide Gazette LN 148 of 2013.

In term of practicability, a foreigner can purchase the Sarawak’s high rise property and landed property under the foreigner’s name ONLY. In other words, a foreigner cannot purchase the Sarawak’s high rise property and/or landed property under joint name with one or more Malaysian (be it spouse, child, relative or friend). The issue will arise at the stage of registration of transfer of the said property at the Land and Survey Department, Sarawak, i.e. the Memorandum of Transfer of the said property will be rejected by the Land and Survey Department, Sarawak, and the sale and purchase process has to start over again, which caused a waste of time and money.