GOVERNANCE GLOBAL PRACTICE NOVEMBER 2017 THE MALAYSIA DEVELOPMENT EXPERIENCE SERIES Enhancing Public Sector Performance Malaysia’s Experience with Transforming Land Administration CONNECT WITH US wbg.org/Malaysia @WorldBankMalaysia @WB_AsiaPacific blogs.worldbank.org/category/ countries/malaysia NOVEMBER 2017 THE MALAYSIA DEVELOPMENT EXPERIENCE SERIES Enhancing Public Sector Performance Malaysia’s Experience with Transforming Land Administration GOVERNANCE GLOBAL PRACTICE About KNOWLEDGE & RESEARCH The World Bank Group’s current partnership with Malaysia is focused on knowledge- sharing. It is centered on support for Malaysia’s vision to join the ranks of high-income economies by 2020 through inclusive and sustainable growth, and to share its lessons with developing countries. In March 2016, the World Bank Group officially launched its Global Knowledge and Research Hub in Malaysia. The Hub is the first of its kind, serving both as a field presence in Malaysia and as a global knowledge and research hub. It focuses on sharing Malaysia’s people-centered development expertise and creating new innovative policy research on local, regional and global issues. Knowledge & Research reports are flagship work emanating from the teams based in the Malaysia Hub. The Malaysia Development Experience Series captures key lessons from Malaysia relevant for emerging economies in Asia, Africa and elsewhere that are transitioning out of poverty and into shared prosperity. Cover Photo: Aerial shot of Kuala Sanglang in Perlis. Photo courtesy of Ministry of Natural Resources and Environment, Malaysia. The findings, interpretations, and conclusions expressed in this report do not necessarily reflect the views of the Executive Directors of the World Bank or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. The boundaries, colors, denominations, and other information shown on any map in this work do not imply any judgment on the part of the World Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries. Please contact Kathrine Kelm, the lead author of this report, at kkelm@worldbank.org if you have questions or comments with respect to content. Table of Contents Acknowledgements 4 Foreword 5 List of Acronyms 6 List of Boxes 8 List of Figures 8 Executive Summary 9 Why is There Global Interest in Efficient Land Administration? 12 Why is Malaysia’s Experience Worth Learning From? 18 Malaysia’s Land Administration: A Primer 22 Institutional and legal context 23 Qualified Titles 26 Investment in IT systems, digital data, and business process re-engineering 28 Developing and implementing a National Spatial Data Infrastructure (NSDI) 34 What Can Be Learned From Malaysia’s Experience? 36 Qualified Titles 37 ICT Solutions and Data Integration 37 Public-Private Partnerships (PPPs) 38 National Spatial Data Infrastructure (NSDI) 38 Policy and inter-agency coordination 39 Summary and Conclusions: Key Takeaways for Other Countries 40 References 42 Enhancing Public Sector Performance: Malaysia’s Experience with Transforming Land Administration 3 Acknowledgements Enhancing Public Sector Performance: Malaysia’s Experience with Transforming Land Administration prepared by the World Bank team consisting of: Kathrine Kelm, Tony Burns, and Jana Kunicova (authors). Other colleagues, including William McCluskey, Dr. Dzurllkanian, Arividya P Arimuthu, and Carmen Loo provided useful inputs. Chancey Lee Pacheco and Joshua Foong provided excellent editorial assistance. The team worked under the overall guidance of Robert Taliercio and Jorge Munoz, and closely coordinated with Faris H. Hadad-Zervos, Louise Scura and Shabih Ali Mohib. The team is grateful to peer reviewers (Kai Kaiser and Anna Corsi) for their thoughtful comments and suggestions. This report benefited from presentations, fruitful discussions, comments, and information from various sections of the Ministry of Natural Resources and Environment (MNRE), the Federal Department of Surveying and Mapping (JUPEM), the Department of Director General of Lands and Mines (JKPTG), the Malaysian Centre for Geospatial Data Infrastructure (MaCGDI), the Public Private Partnership Unit under the Prime Minister’s Department (UKAS), the State Government representatives in Johor Bahru and Malacca, and many other ministries and agencies of the Government of Malaysia. The report is based on information as of February 2017. 4 Enhancing Public Sector Performance: Malaysia’s Experience with Transforming Land Administration Foreword Franklin D. Roosevelt once said: “We think of our land and water and human resources not as static and sterile possessions, but as life-giving assets to be directed by wise provisions for future days.” Those words continue to ring true today. Land represents one of the key sources of wealth for a country with economic, social and environmental dimensions. Transparent and efficient land administration and management systems allow land assets to be maximized for economic growth, sustainable development, food security and social cohesion. Providing for secure land rights is embodied in the Constitution. Land- related investments have enabled Malaysia’s transformation over the past three decades in both the rural and urban areas. Realizing efficient delivery of land administration services is a strategic goal for Malaysia and for the Ministry of Natural Resources and Environment. Providing reliable and affordable access to information on land rights and technical cadastral aspects have allowed the land market to grow and function as an economic driver for the country. Malaysia offers lessons for other countries seeking to transform their economies using land. Coordination though the National Land Council and a strong focus on consensus have facilitated technical, legal and institutional solutions, despite the challenges that Malaysia faces with the division of responsibilities for land administration between the State and Federal level. In addition, the adoption of digital technology for land information has transformed service delivery, as evidenced in the World Bank Doing Business Rankings. Malaysia moves forward to be amongst the top countries in the world in economic development, citizen well-being, and innovation by the year 2050. The Prime Minister said recently in the Global Transformation Forum: “The National Transformation Program aims to generate benefits for all Malaysians. It is key that no Malaysian gets left behind; that the needs of all our people are met; and that all communities, whether large or small, are able to contribute to and share the wealth of the country.” In this process, a highly concerted effort between the Federal Government and the State Government is crucial to bring about a total revamp in land administration. Gone are the days when archaic statutes and intricate procedures were part-and-parcel of Malaysia’s land administration. Current land policies are dynamic and visionary, trying to take into account the needs of a globalized economy. It is an honor that the World Bank is documenting lessons from the progress Malaysia has made with reforms for land administration. I believe the experiences and solutions will be instructive for other countries facing many of the same issues. YBhg. Dato’ Sri Azizan Bin Ahmad Secretary General Ministry of Natural Resources and Environment Enhancing Public Sector Performance: Malaysia’s Experience with Transforming Land Administration 5 List of Acronyms 3D Three dimensional 4D Four dimensional CAMA Computer Assisted Mass Appraisal C-DAC Centre for Development of Advanced Computing (India) CORS Continuously Operating Reference Station EPU Economic Planning Unit eTaPP Management System of Federal Land and Division Archives FIG International Federation of Surveyors FT Final Title GDP Gross domestic product GI Geospatial Information GIS Geographic Information System GNSS Global Navigation Satellite System ICT Information and Communication Technology IGR Inspector General of Registration (India) INSPIRE Infrastructure for Spatial Information in Europe IT Information Technology JKPTG Department of Director General of Lands and Mines JPPH Jabatan Penilaian Dan Perkhidmatan Harta (Valuation and Property Services Department) JUPEM Federal Department of Surveying and Mapping JV Joint venture KL Kuala Lumpur LG Local Government LGA Local Government Act LGDC Local Geospatial Data Centre MaCGDI Malaysian Centre for Geospatial Data Infrastructure MAMPU Malaysian Administrative Modernization and Management Planning Unit MDEC Malaysia Digital Economy Corporation MNRE Ministry of Natural Resources and Environment MoF Ministry of Finance MRA Multiple Regression Analysis MyGDI Malaysia Geospatial Data Infrastructure MyGOS Malaysia Geospatial Online Services MYR Malaysian Ringgit NaLIS National Infrastructure for Land Information System 6 Enhancing Public Sector Performance: Malaysia’s Experience with Transforming Land Administration NGDB National Geospatial Data Centre NGMP National Geospatial Master Plan NLC National Land Code NRE Natural Resources and Environment NSDI National Spatial Data Infrastructure OSC/PBT One Stop Center OECD Organisation for Economic Cooperation and Development OGC Open Geospatial Consortium PPP Public-Private Partnership PTG Pejabat Tanah dan Galian (Office of Lands and Mines) QT Qualified Title SARITA Stamps and Registration Information Technology Based Administration (Maharashtra, India) SDGs Sustainable Development Goals SDI Spatial Data Infrastructure SHTB Sistem Hasil Tanah Berkomputer (Computerized Land Revenue Collection System) SPOC Single Point of Contact SPTB Sistem Pendaftaran Tanah Berkomputer (Computerized Land Registration System) SGDC State Geospatial Data Centre SPPT Sistem Pemodenan Pentadbiran Tanah (Modernized Land Administration System) UKAS Public Private Partnership Unit under the Prime Minister's Department UN-GGIM United Nations Committee of Experts on Geospatial Information Management VGGT Voluntary Guidelines on Responsible Governance of Tenure of land, fisheries and forests VGI Volunteer Geographic Information Enhancing Public Sector Performance: Malaysia’s Experience with Transforming Land Administration 7 List of Boxes Box 1. The Sustainable Development Goals (SDGs): References to Secure Land Rights 15 Box 2. Voluntary Guidelines on the Responsible Governance of Tenure of land, fisheries and forests (VGGT) 16 Box 3. Fit for Purpose Land Administration 17 Box 4. What is Land Registration and the Torrens Title System? 25 Box 5. PPPs for Land Administration 32 Box 6. National Spatial Data Infrastructure 35 List of Figures Figure 1. Doing Business 2017 Rankings and Assessment 20 Figure 2. Peninsular Malaysia: Qualified Titles Converted ( December 2014 to June 2015) 27 Figure 3. Evolution of Land Administration Computerization 28 Figure 4. e-Tanah System Architecture 30 Figure 5. Cadastral Map of Sg. Sanglang in Kedah 31 8 Enhancing Public Sector Performance: Malaysia’s Experience with Transforming Land Administration Executive Summary This report is part of the series focusing on lack even basic land information systems to secure documenting the lessons from Malaysia for other land rights, support private sector development or developing countries in improving their public improve public sector service delivery. Common sector management. These lessons include those challenges preventing developing countries from at the center of government – such as the delivery establishing systems to provide quality land unit method applied to the implementation of the administration include complexity and costs in national priorities1, or implementing the elements of establishing comprehensive land records and performance-based budgeting – as well as deeper maps. Recent advances in surveying, mapping and analysis of specific approaches in various sectors. ICT technologies have made the task of addressing Strategies for improving public sector performance these challenges easier and cheaper. There are will differ in education, health, public transport, or many success stories globally to learn from, but each land administration. Yet at this sectoral juncture, country and its land tenure system is unique and public sector management has the most direct there is no universal model for land administration. impact on service delivery and citizens’ outcomes. Technical solutions need to be fit-for-purpose and governance of institutions needs to be sound. This report focuses on land policies and land administration services because they are key Peninsular Malaysia offers several examples for good governance. They are fundamental for of programs and initiatives that have led to secure land rights, developing land markets and improved land administration systems and managing land resources in a manner that best services. Other developing countries may find contributes to economic growth, efficient public the Malaysian experience instructive since it is a sector service delivery, environmental protection, relatively large country that has implemented a and social cohesion and security. Land and series of reforms to transform from a low to a middle buildings generally represent between half and income country in a relatively short time period. three quarters of the national wealth in all countries. Malaysia performs well for land administration The importance of secure land rights and good land globally. It ranks 42 out of 190 jurisdictions in the administration have been recognized in several ease of registering property in the annual World international forums including the 2030 Sustainable Bank Doing Business ranking. Development Goals (SDGs), the United Nations Committee on Food Security and the World Bank/ The institutional and legal context for land International Federation of Surveyors (FIG) Fit for administration in Malaysia spans both Federal Purpose Land Administration publication. and State mandates as well as multiple institutions and agencies. The 1957 Federal However, approximately 70 percent of the Constitution defines the rights and responsibilities world’s population does not have access to of the federal government, the member states of the affordable land administration systems to federation and citizens. For land administration, the secure their property rights. Many governments Constitution recognizes a two-tier governmental 1 See World Bank, 2017a. Driving Performance from the Center: Malaysia’s experience with PEMANDU. Washington, DC. http://documents.worldbank.org/curated/en/318041492513503891/Driving-performance-from-the-center-Malaysia-s-experience-with-PEMANDU Enhancing Public Sector Performance: Malaysia’s Experience with Transforming Land Administration 9 Executive Summary structure on Peninsular Malaysia and Federal that the issuance of qualified titles can be an territories. Land and land-based resources come effective means of implementing systematic under the purview of the state, which means registration where the qualified titles and that each State government has the authority to any subsequent dealings with these titles are legislate on land matters including agriculture, managed in the same system that registers full forestry and the land registry. However, cadastral or unqualified titles. mapping and systems come under the purview of the federal government, and both federal and state • Business-process re-eng ineering is an governments share jurisdiction over other areas effective tool to make significant changes to such as town and country planning, rehabilitation service delivery. When implemented with strong of mining land, housing, drainage and irrigation. political support, it provides the means to break This complexity has implications for governance of down strong ‘silos’ in systems that have evolved land rights, land market functions and improving over long periods of time. The effectiveness public sector service delivery. However, while land of these improvements is reflected in the is predominantly a state matter in Malaysia, the improving Doing Business Ranking. federal government has the power to make laws for the purpose of uniformity.2 • ICT tools can be effective in standardizing processes, improving service delivery and Despite the complex legal and institutional making spatial and textual data available for structure, Malaysia is a success story in broader use in government and society. Going delivering efficient land administration forward, the introduction of the ICT system services. In particular, Malaysia has established a e-Tanah (e-Land) and the development of cadastre and land registration system on Peninsular clear interfaces to other systems, particularly Malaysia that enables efficient provision of land the mapping system e-Kadaster, will improve administration services. The key takeaways from services and help generate the spatial and the Malaysian successes include: textual data that Malaysia needs to successfully implement the National Spatial Dat a • The introduction of qualified titles, which Infrastructure (NSDI). allows registration without a formal cadastral survey, was a successful mechanism to overcome • PPPs can potentially offer an innovative key constraints, such as the limited number of business model for governments to consider. government and professional surveyors and However, due consideration needs to be the perceived high cost of formal surveys. Over made around the governance of the design, time, the standards and processes for cadastral contracting, implementation, monitoring and surveys have been improved and a national impact. Ensuring secure property rights and a program for the conversion of qualified titles well-functioning land market are a cornerstone to final title has been introduced and is largely for economic development and social stability. successful. Thus, Malaysia’s experience shows 2 Due to the significant differences in land administration structures between Peninsular Malaysia, Sabah and Sarawak, this report focuses only on Peninsular Malaysia. 10 Enhancing Public Sector Performance: Malaysia’s Experience with Transforming Land Administration Executive Summary Learning of Malaysia’s challenges can be equally national policy objectives. Sharing information instructive. Key lessons for other countries include: in a fully transparent manner is not common and as a result information exchange is limited. • When possible, an integrated cadastre and While governments may choose to start NSDI registry system is suggested. Malaysia has development prior to a formal policy and a complex institutional arrangement for land legal framework, developing a mature and administration, with divided responsibility for efficient SDI requires clear mandates, roles and the cadastre and the land registry. Therefore, responsibilities for all parties. The National Land Council was set up to provide a mechanism for formulating national land policy. However, since this mechanism has a strong emphasis on consensus, it involves rigorous prior consultations between federal and state authorities in overcoming the significant gaps in land administration data and system integration. Cadastral and land registry data and systems need to be integrated in order to provide complete and accurate land administration data to both public and private users. The most efficient way to ensure seamless integration is to have a single system for the information under a single authority. In the absence of an integrated institutional structure, a strong coordination mechanism with mandatory compliance for data integration is critical, and has been successfully instituted for Malaysia. • An effective NSDI requires a clear policy and legal framework in order to define the roles and responsibilities of data suppliers and users. Over the past decades, Malaysia has developed its NSDI through guidelines and standards; however, there is still no national NSDI strategy or law. The majority of agencies and organizations that provide or use geospatial data are motivated by their own mission and do not necessarily subscribe to Enhancing Public Sector Performance: Malaysia’s Experience with Transforming Land Administration 11 CHAPTER 1 Why is There Global Interest in Efficient Land Administration? Land and buildings generally represent between half and three quarters of the national wealth in all countries. Good land policies and quality land administration services are fundamental for secure land tenure, a well-functioning land market and sustainable management of land resources which in turn contribute to economic growth, efficient public sector service delivery, environmental protection, and social cohesion and security. 12 Enhancing Public Sector Performance: Malaysia’s Experience with Transforming Land Administration Chapter 1: Why is There Global Interest in Efficient Land Administration? The importance of secure land rights and good land administration have been recognized in several international forums and agreements including: • The 2030 Sustainable Development Goals (SDGs) where three of the SDGs specifically refer to secure land ownership and by extension highlight the need for good land administration. (see Box 1) • The 2013 Voluntary Guidelines on the Responsible Governance of Tenure of land, fisheries and forests of the United Nations Food and Agriculture Organization/ Committee on Food Security, which links food security to good land governance and systems. (see Box 2) • The 2014 joint World Bank-International Federation of Surveyors (FIG) publication ‘Fit for Purpose Land Administration’ which defines the Fit for Purpose approach to design to build sustainable land administration systems. (see Box 3) Enhancing Public Sector Performance: Malaysia’s Experience with Transforming Land Administration 13 Chapter 1: Why is There Global Interest in Efficient Land Administration? Land administration 3 underpins efficient land management 4 and sustainable development. The land administration systems in OECD countries have evolved over long periods of time, typically over a century, usually from fairly simple systems that operated in limited areas to sophisticated systems that cover the whole jurisdiction and provide a comprehensive range of land administration services. Basic land administration services consist of spatial aspects (cadastral mapping) and legal aspects (registration of rights, responsibilities and restrictions) which, when combined, create a land information system. More sophisticated systems expand services and link land information systems to other key registers such as the civil, business, planning and fiscal registers. Geospatial or location-based information further enhances the ability to analyse and manage land related information in a 3D environment and over time in 4D applications. These ever more sophisticated systems rely on the establishment of a spatial data infrastructure (SDI) which are made possible through the adoption of standards for inter-operability and data exchange between public and private users for a variety of uses. However, approximately 70 percent of the world’s population does not have access to affordable systems to secure their rights. Many governments lack even basic land information systems to secure land rights, support private sector development or improve public sector service delivery. Common challenges preventing developing countries from establishing systems to provide quality land administration include complexity and costs in establishing comprehensive land records and maps. Recent advances in surveying, mapping and ICT technologies have made the task of addressing these challenges easier and cheaper, but the main obstacles to providing quality land administration services typically relate to legal hurdles, institutional fragmentation and resistance to change. There are many success stories globally to learn from, but each country and its land tenure system is unique and there is no universal model for land administration. Technical solutions need to be fit-for-purpose and governance of institutions needs to be sound. Finally, high quality land administration requires sustainable financing and institutional structures to implement and maintain the reform and support the development of new solutions. 3 Land administration is the processes of determining, recording and disseminating information about ownership, value and use of land and its associated resources. Source: http://www.fao.org/in-action/herramienta- administracion-tierras/glossary/l/en/ 4 Land management is the process of managing the use and development of land resources. Some of the critical, and sometimes conflicting, objectives that must be addressed by land management policies today include: • improving the efficiency of land resource use to support the rapidly growing population of many countries; • providing incentives for development, including the provision of residential housing and basic infrastructure such as sewer and water facilities; • protecting the natural environment from degradation; • providing equitable and efficient access to the economic benefits of land and real estate markets; • supporting government services through taxation and fees related to land and improvements. Source: http://www.fig.net/resources/publications/figpub/pub11/figpub11.asp#1. 14 Enhancing Public Sector Performance: Malaysia’s Experience with Transforming Land Administration Chapter 1: Why is There Global Interest in Efficient Land Administration? BOX 1 The Sustainable Development Goals (SDGs): References to Secure Land Rights Goal 1. End poverty in all its forms everywhere By 2030, ensure that all men and women, in particular the poor and the vulnerable, have equal rights to economic resources, as well as access to basic services, ownership and control over land and other forms of property, inheritance, natural resources, appropriate new technology and financial services, including microfinance Goal 2. End hunger, achieve food security and improved nutrition and promote sustainable agriculture By 2030, double the agricultural productivity and incomes of small- scale food producers, in particular women, indigenous peoples, family farmers, pastoralists and fishers, including through secure and equal access to land, other productive resources and inputs, knowledge, financial services, markets and opportunities for value addition and non-farm employment Goal 5. Achieve gender equality and empower all women and girls Undertake reforms to give women equal rights to economic resources, as well as access to ownership and control over land and other forms of property, financial services, inheritance and natural resources, in accordance with national laws For more information about the United Nations Sustainable Development Goals, see the website at http://www.un.org/sustainabledevelopment/sustainable-development-goals/ Enhancing Public Sector Performance: Malaysia’s Experience with Transforming Land Administration 15 Chapter 1: Why is There Global Interest in Efficient Land Administration? BOX2 Voluntary Guidelines on the Responsible Governance of Tenure of land, fisheries and forests (VGGT) The 2012 Voluntary Guidelines on the Responsible Governance of Tenure of Land, Fisheries and Forests (VGGT) promote secure tenure rights and equitable access to land, fisheries and forests as a means to achieve food security, eradicate hunger and poverty and support sustainable development. The VGGT serves as a reference guide for internationally accepted standards for the responsible governance of tenure, achieving sustainable livelihoods, social stability, housing security, rural development, environmental protection, and sustainable social and economic development. They also set out a framework that governments can use when developing their own strategies, policies, legislation, programs. The full document is available at: http://www.fao.org/nr/tenure/voluntary-guidelines/en/ 16 Enhancing Public Sector Performance: Malaysia’s Experience with Transforming Land Administration Chapter 1: Why is There Global Interest in Efficient Land Administration? BOX 3 Fit for Purpose Land Administration In 2014, the joint World Bank-FIG document on Fit for Purpose Land Administration was published. The Fit for Purpose approach is designed to build sustainable land administration systems. An excerpt notes: “The document stresses that the approach used for building land administration systems in less developed countries should be flexible and focused on citizens’ needs, such as providing security of tenure and control of land use, rather than focusing on top-end technical solutions and high accuracy surveys. A fit-for- purpose approach includes the following elements: • Flexible in the spatial data capture approaches to provide for varying use and occupation. • Inclusive in scope to cover all tenure and all land. • Participatory in approach to data capture and use to ensure community support. • Affordable for the government to establish and operate, and for society to use. • Reliable in terms of information that is authoritative and up-to-date. • Attainable in relation to establishing the system within a short timeframe and within available resources. • Upgradeable with regard to incremental upgrading and improvement over time in response to social and legal needs and emerging economic opportunities. A country’s legal and institutional framework must be revised to apply the elements of the fit-for-purpose approach. This means that the fit-for-purpose approach must be enshrined in law, it must still be implemented within a robust land governance framework, and the information must be made accessible to all users.” The full document is available at: https://www.fig.net/resources/publications/figpub/pub60/Figpub60.pdf Enhancing Public Sector Performance: Malaysia’s Experience with Transforming Land Administration 17 CHAPTER 2 Why is Malaysia’s Experience Worth Learning From? Peninsular Malaysia offers several examples of programs and initiatives that have led to improved land administration system and services. Other developing countries may find the Malaysian experience instructive since it is a relatively large country that has implemented a series of reforms to transform from a low to a middle income country in a relatively short time period. Malaysia may offer more relevant examples of reforms than small city states such as Singapore or Hong Kong, or developed nations like New Zealand. 18 Enhancing Public Sector Performance: Malaysia’s Experience with Transforming Land Administration Chapter 2: Why is Malaysia’s Experience Worth Learning From? Malaysia performs well for land administration globally. It ranks 42 out of 190 jurisdictions in the ease of registering property in the annual World Bank Doing Business ranking, which is a good assessment in relation to other countries in the region (see Figure 1). The Doing Business Report notes that steps to increase this ranking would be those that reduced the number of procedures and the time necessary to register a transaction. The ranking for the quality of land administration is also high at 27.5 out of a maximum of 30 points, with points lost due to the separate cadastral and registration databases, the lack of publicly available statistics on transactions and the lack of a mechanism to compensate those acting in good faith who suffered losses without going to the courts. Enhancing Public Sector Performance: Malaysia’s Experience with Transforming Land Administration 19 Chapter 2: Why is Malaysia’s Experience Worth Learning From? FIGURE 1. Doing Business 2018 Rankings and Assessment5 Ease of Cost Quality of Doing Registering Procedures Time (percent of the land Economy Business Property (number) (days) property administration Rank value) index (0-30) Brunei Darussalam 56 136 7 298.5 0.6 18 Cambodia 135 123 7 56 4.3 7.5 China 78 41 4 28 3.6 19 Hong Kong SAR, China 5 55 5 27.5 7.7 27.5 Indonesia 72 106 5 25 8.4 11.5 Lao PDR 141 65 4 53 1 10.5 Malaysia 24 42 8 13 3.5 27.5 Myanmar 171 134 6 85 4.1 5.5 New Zealand 1 1 2 1 0.1 26 Philippines 113 114 9 35 4.3 12.5 Singapore 2 19 6 4.5 2.9 29 Taiwan, China 15 18 3 4 6.2 28.5 Thailand 26 68 5 7 7.3 18 Vietnam 68 63 5 57.5 0.6 14 Source: World Bank Peninsular Malaysia’s success in land administration can be contributed to several factors. One example is the introduction of a simplified process to complete the systematic registration of land in the country. The government introduced the concept of qualified titles in the legal framework to remove the requirement of a formal, accurate cadastral survey for registration. Allowing registration based on qualified title reduced the time and cost of registration, resulting in a successful initial registration campaign that strengthened land tenure security and facilitated development of the formal land market. The government has subsequently introduced programs to upgrade qualified title to final title. The introduction of qualified titles with eventual upgrading to final titles is a good example of fit-for-purpose land administration principles and can be considered a valuable methodology to quickly register land rights and boost land market activity. A second example is the investment in IT systems and digital data to improve service delivery. The government has embarked on a national digital agenda covering key services and sectors of the economy, including land administration. From clear national policy to targeted investments in IT systems and data, Malaysia is building the necessary foundations for e-government. The investments in IT systems are also being used to overcome some of the complex legal and institutional responsibilities for land administration by introducing the integration of cadastral and registration information. This digital land information system further supports advanced data management and analysis through the Malaysian National Spatial Data Infrastructure (NSDI) and other applications such as the valuation and taxation of property. The positive results are reflected in the Doing Business rankings and general confidence of both the public and private sector with land administration functions and services. These aspects are discussed in more detail in Chapter 3. 5 Data downloaded 8 November 2017 from Doing Business pages: http://www.doingbusiness.org/rankings and http://doingbusiness.org/data/ exploretopics/registering-property 20 Enhancing Public Sector Performance: Malaysia’s Experience with Transforming Land Administration Chapter 2: Why is Malaysia’s Experience Worth Learning From? Enhancing Public Sector Performance: Malaysia’s Experience with Transforming Land Administration 21 CHAPTER 3 Malaysia’s Land Administration: A Primer 22 Enhancing Public Sector Performance: Malaysia’s Experience with Transforming Land Administration Chapter 3. Malaysia’s Land Administration: A Primer Institutional and legal context The institutional and legal context for land ownership and provides that no person may be administration in Malaysia is complex and deprived of property save by law and that no law spans both Federal and State mandates as can provide for compulsory acquisition or use of well as multiple institutions and agencies. This property without adequate compensation. For land complexity has implications for governance of land administration, the Constitution recognizes the two- rights, land market functions and improving public tier governmental structure that exists in Malaysia. sector service delivery. Article 71 guarantees the sovereignty of the Malay Sultans in their respective States and each State Malaysia, like many countries that gained has its own constitution. The Constitution clearly independence from colonial administration, delineates and demarcates the sphere within which inherited a dual land tenure system. The Straits the two levels of government operate. The two-tier Territories of Penang, Malacca, and Singapore governmental structure refers to the Federal and (a part of Malaysia till 1965) became part of the State Government, and consequently, the powers British Empire in the 18th century. The Malay States granted to them by the Constitution. on what is now Peninsular Malaysia operated as sovereign states under Malay Sultans with separate The extent to which the Federal and State policies and laws. The British Protectorate which powers are distributed is found in the Ninth comprised the four Malay States of Selangor, Schedule of the Constitution. According to the Perak, Negeri Sembilan and Pahang became the Ninth Schedule, land and land-based resources Federated States of Malaya in 1895 while the other come under the purview of the State, which in five Malay States (Johor, Kedah, Perlis, Kelantan, turn means that each State government has the Terengganu) accepted the status of protectorates authority to legislate on land matters. The Schedule between 1914 and 1930. The Malayan Union was lists the following as being under the purview of the formed in 1946 by combining the Federated and State government: land, agriculture, forestry, local Unfederated States of Malay with the settlements of government as well as turtles and riverine fishing. Penang and Malacca under the sovereignty to the By extension, the state is responsible for the land British Crown. The Malayan Union was restructured registry. Other areas such as town and country as the Federation of Malaya in 1948 which achieved planning, rehabilitation of mining land, housing, independence in 1957. Malaysia was formed as a drainage and irrigation are placed under the new Federation in 1963 when the Federation of concurrent list, which means that both the Federal Malaya united with Sabah, Sarawak, and Singapore. and State governments share jurisdiction over these matters. Meanwhile, cadastral systems come under The Federal Constitution of Malaysia, adopted the purview of Federal government. For Federal in 1957, defines the rights and responsibilities territories such as Kuala Lumpur (KL), both the land of the Federal government, the member registry and cadastre are under the jurisdiction of States of the Federation and citizens. Article the federal agencies. This division of power remains 13 embodies the fundamental right of property a backbone to the federation structure of Malaysia. Enhancing Public Sector Performance: Malaysia’s Experience with Transforming Land Administration 23 Chapter 3. Malaysia’s Land Administration: A Primer While land is a State matter, the Federal Malaysia provides several examples of programs Government has the power under Article and systems to secure land rights, facilitate 76(4) of the Constitution to make laws for the a well-functioning land market, and provide purpose of uniformity. The National Land Code efficient land administration services. All states (NLC) of 1965 was enacted under this provision on Peninsular Malaysia operate a Torrens system of to provide a uniform system of tenure for the 9 registration administered by District Land Offices States on Peninsular Malaysia and the Federal and coordinated by the Office of Lands and Mines territories. Article 91 in the Constitution provides (PTG) in each State. The Federal Department of for the establishment of a National Land Council Surveying and Mapping (JUPEM) is responsible made up of the Minister as chairman with one for undertaking cadastral surveys within Peninsular representative appointed by the Ruler of each State Malaysia with the support of licensed land surveyors. plus no more than 10 representatives appointed by the Federal government. Currently, the chairman The land administration system in Malaysia of the National Land Council is the Deputy Prime has been developed internally, largely without Minister. The National Land Council is to meet at outside assistance. It was estimated in 2016 that least once annually and is charged with a number there were 7.3 million land parcels in Peninsular of key responsibilities including the formulation Malaysia and that 98 percent were surveyed and of national land policy, matters related to the registered. Most of the titles registered in 2016 were utilization of land and land legislation. Under the final tiles with less than 500,000 qualified titles.7 NLC, land is classified into (a) above shoreline and There has been a steady increase in the number (b) foreshore and sea bed. The above shoreline of titles registered. The number of titles increased is further classified into (i) town; (ii) village and from 3,324,009 in June 1986 to 5,721,616 in 2008.8 (iii) country. The land uses are: (a) agriculture; (b) building; and (c) industry. Key factors contributing to Peninsular Malaysia’s success in registering rights are: There is a separate legal basis for land tenure provision of qualified titles; investment in IT in Sabah and Sarawak. The 1930 Sabah Land systems; and computerization of land records. Ordinance applies in Sabah with land classified into: The provision for qualified titles in the National “town land”; and “country land”. The State holds the Land Code was followed by a rapid systematic allodial right to all land, ownership applies only to registration process. The investment in IT systems the surface, possession is the root of title and rights and business process re-engineering has enabled are transferable by inheritance. The law provides Malaysia to standardize the procedures to register for customary tenure. The 1958 Sarawak Land Code rights in order to provide more efficient services. applies in Sarawak and provides for registration The computerization of land records has provided under a Torrens system 6 with land classified as a basic dataset to support a Malaysian National interior area land; native customary land; and mixed Spatial Data Infrastructure (NSDI) and other data zone land. Due to the significant differences in land analysis applications such as the valuation and administration structures in Sabah and Sarawak, this taxation of property. These aspects are discussed report will focus on Peninsular Malaysia only. below. 6 The Torrens title is a system of land registration in which a register of land holdings maintained by the state guarantees an indefeasible title to those included in the register. Land ownership is transferred through registration of title instead of relying solely on deeds. It was originally used in Australia. See Box 4 for more details. 7 Cadastral Template for Malaysia - http://www.cadastraltemplate.org/cadastraltemplate/malaysia.php 8 The numbers are quoted by Ganason A, Land Administration System in Malaysia: Single Title System: A Stimulant to Land Administration Reform, J. Pentadbiran Tanah (2011:46). 24 Enhancing Public Sector Performance: Malaysia’s Experience with Transforming Land Administration Chapter 3. Malaysia’s Land Administration: A Primer BOX 4 What is Land Registration and the Torrens Title System? Land registration is the official recording of legally recognized interests in land. There is no universal system of land registration but it is generally accepted that there are two different approaches, deeds registration or title registration. From a legal point of view the key difference between the two approaches is that under a deeds registration system the documents recorded in the deeds registry are the evidence of title while under a title registration system the register itself is the prime evidence of title. A title registration system is often supported by a state guarantee but this is not universal. The state guarantee supports the indefeasibility of title while providing a mechanism to compensate those acting in good faith who are disadvantaged by the operation of the title register. Typically a title registration system provides more certainty and requires less effort by those seeking information or dealing with property rights. With advances in technology and the application of this technology to tasks such as the computerization of deeds and other records, production of digital maps, linking the textual and spatial data in the registry and providing online access to data and information, the difference between the two approaches is blurring. Generally the move in any significant upgrade to a land registration system is to title registration but very efficient and reliable deeds registration systems operate in many countries, including South Africa and the Netherlands. Regardless of the approach, it must be recognized that there are many forms of both deeds and title registration systems. The Torrens title system was introduced by Sir Robert Torrens in South Australia in 1858 as a system to record property rights that was significantly simpler than the traditional system under English land law of proving a chain of title through a series of deeds. Under the Torrens title system a registered proprietor holds an indefeasible title ‘subject to such mortgages charges, leasehold or other lesser estates as may exist or be created affecting the land.’ (Torrens R, Gawler H, 1859:9). Ruoff (1957:8), lists the three principles that apply to the Torrens title system: • The Mirror Principle where the register accurately and completely reflects the current facts that are material to the title. • The Curtain Principle where the register is the sole source of information for those investigating the title. • The Insurance Principle under which those who suffer loss caused by private fraud or by errors made by the staff in the registry receive compensation. Torrens title has been widely adopted by jurisdictions administered by Britain. Torrens title was introduced in Malaysia by the British and is the tenure system implemented under the National Land Code. However in Malaysia the principle of insurance is not applied. Source: Authors Enhancing Public Sector Performance: Malaysia’s Experience with Transforming Land Administration 25 Chapter 3. Malaysia’s Land Administration: A Primer Qualified Titles Qualified titles are a mechanism to quickly the fact that the spatial data for qualified titles was complete the systematic registration process. not recorded in the national cadastral map series.12 The land registration systems that were established Despite the less accurate mapping associated with prior to the formation of Malaysia required the qualified titles, they have been accepted and trusted preparation of accurate survey plans. There was a by land owners, government institutions and the limited number of qualified surveyors in the country private sector, including financial institutions which which was a serious constraint on the ability of the provide credit secured by the properties. State authorities to register land holdings. Largely to address this constraint the NLC introduced the Over time, the government has introduced issuance of either final titles or qualified titles. The programs and requirements to upgrade qualified NLC specifies that qualified titles can be issued for titles to final title. In 1990 the NLC was amended alienated or sub-divided land in advance of formal to require a pre-computation plan showing the cadastral surveys 9 and have the same status as intended new boundaries based on computation final titles except the boundaries are provisional from existing survey data and other relevant data, and a qualified title cannot be sub-divided or where the linear misclosure of the computation is consolidated.10 A qualified title is converted to a not less than one part in four thousand.13 Qualified final title by a formal cadastral survey.11 titles are now surveyed by district surveyors. There are currently more than 450 licensed surveyors The qualified title process enabled a relatively in Malaysia, with 15-20 new surveyors licensed rapid completion of land administration each year. To improve the delivery land system information that secured land rights and in land matters that comes under the purview of facilitated the land market. In the early stage state administration, the federal government set of implementation, many qualified titles were up a special task force in 2004, encompassing issued on the basis of sketches prepared by non- 1,000 contract personnel to help clear backlogs surveyors which allowed State governments to cases which included the conversion of qualified rapidly complete the initial cadastral map and titles to final titles. This program has reduced the register land rights. The introduction of qualified number of qualified titles substantially (see Figure titles was done in part to overcoming the challenge 2 below). The land owner is charged a fee for the of limited capacity since there was a limited survey to convert a qualified title to final title for number of qualified surveyors, and the perceived the first alienation, but this fee has not been revised high cost and time associated with engaging their for 34 years and the cost of cadastral surveys is services. At the same time, from a traditional land substantially underwritten by the state in the case administration perspective, qualified titles create where the survey is carried by district surveyors. In a different challenge because many were created the case where the survey is carried out by licensed based on sketches prepared by non-surveyors and surveyors, the fee has not been revised since 1997. 9 NLC, section 176. 10 NLC, sub-section 176 (2). There are some additional restrictions for qualified titles, for example section 118 restricts erecting buildings on agricultural land registered with a qualified title. 11 NLC, section 189. 12 Zulkfili et al, 2015 13 That is the vector summation of the bearings and distances previously measured or computed for each boundary in a closed-polygon or parcel is required to result in a vector misclosure that is less than 1/4,000 of the sum of the measured distances. 26 Enhancing Public Sector Performance: Malaysia’s Experience with Transforming Land Administration Chapter 3. Malaysia’s Land Administration: A Primer FIGURE 2. Peninsular Malaysia: Qualified Titles Converted (December 2014 to June 2015) # State Total QTs Converted Balance Converted 1 Wilayah Persekutuan Kuala Lumpur 73,247 73,247 0 100% 2 Negeri Sembilan 418,585 399,005 19,580 95% 3 Johor 765,767 716,840 48,927 94% 4 Melaka 135,560 123,791 11,769 91% 5 Selangor 1,328,549 1,196,898 131,651 90% 6 Pahang 607,960 518,794 89,166 85% 7 Terengganu 223,122 191,130 31,992 86% 8 Pulau Pinang 307,097 247,259 59,838 81% 9 Perlis 64,794 52,620 12,174 81% 10 Perak 581,138 458,370 122,868 79% 11 Kelantan 244,009 163,931 80,078 67% 12 Kedah 537,960 354,462 183,498 66% 5,287,788 4,496,247 791,541 85% Source: JKPTG The introduction of a process that combines task force for conversion of qualified titles to qualified titles with final titles offers a good final titles, there has been little pressure from example of Fit-for-Purpose land administration land owners or land market actors to convert principles. Under the Fit-for-Purpose principles, titles. In addition, States continue to issue qualified governments are encouraged to adopt policies titles. As a result, some challenges have emerged, and procedures to rapidly develop their land including the fact that the spatial definition administrations systems and allow for upgrading (boundaries) of the qualified titles are not recorded over time. The qualified title approach adopted in in the national cadastral map managed by JUPEM Malaysia facilitated rapid registration and secured at the Federal level. Thus, the duality between land rights, and the subsequent final title process Federal and State land information and systems has facilitated upgrading and combining the remains and there is not a single, definitive map information for various purposes. for the country. This duality could lead to gaps and overlaps in information and increased collection Despite the success in quickly completing the and maintenance costs for both the Federal and land administration information and a special State governments. Enhancing Public Sector Performance: Malaysia’s Experience with Transforming Land Administration 27 Chapter 3. Malaysia’s Land Administration: A Primer Investment in IT systems, digital data and business process re-engineering Malaysia has also been progressively introducing digital land record management and other technologies for land administration. For cadastral data, JUPEM has invested in the technical infrastructure to create accurate digital maps and manage cadastral data using modern technologies. Cadastral surveys are recorded in the national cadastral map series based on the national geodetic datum. JUPEM implemented a geodetic adjustment in 200014 and has established a Continuously Operating Reference Station (CORS) network with 72 stations that provide Global Navigation Satellite System (GNSS) data to support a wide range of precise survey and positioning needs and has plans to increase this network. Accurate positioning is necessary to allow precise measurements for development of the NSDI, spatial data integration and applications such as 3D modelling. Business process re-engineering has been essential in improving service delivery. In 2010 Malaysia was ranked 86 in registering property with a property transfer taking 144 days and this ranking spurred JKPTG into a major business process re-engineering exercise.15 Among the initiatives introduced was the “single piece flow” which was an adaptation of factory production line procedures. JKPTG led a team to re-engineer the processes. The old practice of moving documents in one bundle from one point to another was stopped and a new system introduced to move each application from station to station. A checklist of relevant documentation was introduced and a public awareness campaign undertaken. In four months the land administration system managed to register 61.12 percent of property transfers on Peninsular Malaysia in 2 days. Improved record handling systems were also introduced and this greatly reduced the effort required by staff to access and check archived records. The obligatory use of the Malaysia identity card (MyKad) and thumbprint readers were introduced in all land offices as a means of reducing fraud and forgery. FIGURE 3. Evolution of Land Administration Computerization Evolution of Land Administration Computerization 1980 1995 2000 2005 - Current SHTB SPTB SPPT La Co M te m od nd SP Sy Re Sy m s s er (SPP pu PT gi Re SH T te ni z s tr te m is ve at riz Sys ed T ) kn ( nu ) io e d te m ow La eC n B La nd na o n d ( SP ll e Ad se ct m -Ta io i ni n n s tr ah TB at ) io Source: JKPTG n 14 https://unstats.un.org/unsd/geoinfo/RCC/docs/rccap19/crp/E_Conf.102_CRP5_UNRCC_2012_Country_Report.pdf 15 Ismail, Ganason, 2011:39 28 Enhancing Public Sector Performance: Malaysia’s Experience with Transforming Land Administration Chapter 3. Malaysia’s Land Administration: A Primer For land registers, JKPTG provides oversight for the registration system that is implemented by the State authorities on Peninsular Malaysia. There have been five stages in technical evolution of land administration systems in Malaysia and a planned sixth stage, as shown in Figure 3: 1. Prior to the 1980s: Manual land title registration supported by manual cadastral systems with hard- copy maps and card indices; 2. 1980’s: Introduction of computerization with the creation of the first digital cadastral databases, electronic indices and Land Revenue Collection System (SHTB); 3. 1995: Introduction of computerized land registration systems (SPTB) in all State land registries on Peninsular Malaysia; 4. Early 2000’s: The introduction of web-enabled land administration systems with the integration of different government functions such as planning, taxation, land development and local government. Examples included e-Cadastre and Modernized Land Administration System (SPPT); 5. 2005: The introduction of a web-based land titles system e-Tanah (e-Land) linking SHTB and SPTB in Penang, followed by Malacca and planned for expansion in Kuala Lumpur (KL); 6. The development and implementation of iLand planned from 2020 as a vision of integrated, spatially enabled land information available on the internet. The development of the ICT systems such as SPTB has been a key strategy in standardizing the systems used and in improving the quality of the land administration services provided by the States. SPTB is operating in all State land registries on Peninsular Malaysia and it is this software that provides the basis for the strong ranking under the Doing Business Report documented above. Nevertheless, the system does have a number of problems and JKPTG has been promoting the development and implementation of a new digital system called e-Tanah (e-Land) to addresses these issues. The drivers for the development of e-Tanah have included: (i) a large and unwieldy volume of paper records; (ii) increasing use of technology by both the public and private sectors; (iii) concern about the delays in manual registration processes; and (iv) the demand from users for greater spatial accuracy. The concept of e-Tanah has been developed with a public portal that includes: 1. Customer Service (services and procedures, enquire online, complain, check status and seek help); 2. e-Carian (e-Search) focussed on Private Title Search as specified in section 384 of the Land Code; and 3. e-Pembayaran (e-Payment) for the payment of quit rent16 online, uploading of payments to State e-Commerce facilities, processing of credit card payments and checking the status of quit rent payments/arrears. 16 Quit rent is a form of property tax imposed on owners of both freehold and leasehold land, paid yearly to the relevant land office of each State Government. Enhancing Public Sector Performance: Malaysia’s Experience with Transforming Land Administration 29 Chapter 3. Malaysia’s Land Administration: A Primer FIGURE 4. e-Tanah System Architecture e-TANAH SYSTEM ARCHITECTURE e-TANAH PORTAL M in Applic tions Inte r tions SPOC eK d ster Public Module M GDI Customer E-C rl n Core Module Service Str t Re istr tion Consent Revenue L nd Dispos l eT PP E-B r L nd Acquisition L nd Development Enforcement Auction VIS Supportin Applic tions eSt mpin Business Document Port l & Content Applic tions Intelli ence GIS M n ement M n ement Securit SPEKS Business Process User Admin Audit Technic l OSC/PBT Reportin Notific tion M n ement M n ement Tr il Support P ment G tew Technolo Pl tforms & Infr structure eMMKN & D t Center Server WORM Network DRC Rel ted S stem Infr structure Securit Source: JKPTG There will be an internal portal in e-Tanah for the use of officials in undertaking their work. This portal includes: 1. Single Point of Contact for one-stop service centres and core modules; 2. Land Disposal Module; 3. Land Development Module; 4. Land Acquisition Module; 5. Title Registration Module; 6. Strata Title Module; 7. e-Consent Module; 8. Auction Module; 9. Revenue Module; and 10. Enforcement Module. 30 Enhancing Public Sector Performance: Malaysia’s Experience with Transforming Land Administration Chapter 3. Malaysia’s Land Administration: A Primer The key concept behind further development of e-Tanah is to integrate land registry data with other core systems. These systems include e-Kadaster; MyGDI, and e-Stamping, and future enhancements are planned including e-Dealings and e-Lodgements. The software system will also facilitate the integration of the registration data with other key data sets including the national cadastral map series which is maintained federally by JUPEM. However, the development of e-Tanah has taken longer than planned and has not been accepted by all State governments. While various versions of e-Tanah have been developed and implemented in Penang and Malacca, neither investment has resulted in a system that other States are prepared to adopt. Although e-Tanah is being developed under the coordination of the National Land Council, States have autonomy in adopting the software. The perception from one State government, for example, raises concerns about aspects of the e-Tanah as implemented in Malacca and Penang, including concerns about compliance with customer requirements and the fact that the strata records are still maintained manually.17 Land registration in Penang and Malacca is undertaken under the National Land Code (Penang and Malacca Titles) Act of 1963 and this may a factor in delaying the other states on Peninsular Malaysia FIGURE 5. Cadastral Map of Sg. Sanglang in Kedah who implement land registration under 100° 12' T 100° 13' T the National Land Code of 1965. The 3718 4709 3439 1454 2437 5003 5005 1057 1092 1046 5630 5641 926 925 922 928 924 923 915 916 59 3784 4505 3336 1474 3671 3688 249 3685 PETA NO. 1 917 253 4504 3689 5640 1290 3717 3798 provisions of the National Land Code 5626 5632 927 4091 58 2217 5638 1064 3055 3690 5636 1453 2216 3698 3719 3797 5634 1473 245 PETA SEMPADAN BERSAMA 1452 1472 3691 5107 919 4443 1065 3213 57 2177 1047 3211 1292 3697 NEGERI KEDAH DARUL AMAN DAN NEGERI PERLIS 611 3792 4668 2467 3793 Sg 2495 . Sa 2790 2797 3212 2468 2476 4442 246 ng 3797 lan UNTUK PENANDAAN DAN PENETAPAN SEMPADAN g 3692 of 1965 also needed amendment to 3216 1066 Sg. Kobah 4672 217 4703 56 1476 2559 3217 6 11 2469 215 82 3218 1067 5012 ti 339 214 12 3745 3498 1461 . Ma 329 3031 1068 Sg 1460 80 SKALA 1 : 7 000 60066 7 210 3520 2596 455 81 300 1277 453 1069 216 10 4915 454 5127 456 213 support the introduction of improved 3747 3451 4435 1447 1050 4339 9 1440 1063 4447 5061 1062 4446 218 1446 8 4916 1071 1054 375 3455 1445 60003 1560 4448 219 119 165 171 304 208 3749 3459 1443 1451 1444 220 337 201 1439 5108 202 3750 5060 305 225 1025 3523 3524 3525 221 321 3460 2796 443 310 3751 3856 3857 306 18 170 4939 266 3876 444 207 222 ICT systems. In 2008 the National 3752 3877 195 203 3855 194 3860 3858 445 193 112 3753 4938 60025 308 227 1279 307 224 5168 206 115 446 223 196 113 3754 3863 3864 1075 1046 204 96 114 3861 3880 8227 447 309 228 4701 3461 819 149 198 94 116 4722 105 205 98 174 175 1079 60026 144 197 95 3869 5169 226 97 182 4699 338 229 104 176 3884 4 172 181 4401 3881 15 4698 3867 177 179 180 8228 1080 19 3883 147 178 60027 171 1 8231 Land Code of 1965 was amended to 3865 330 27 170 1074 162 3466 3869 4933 5 188 230 169 4402 3862 189 161 4674 2873 3 152 3882 2759 2760 60028 2874 231 173 163 3772 3868 3870 4616 153 4697 3900 3902 5063 190 318 334 4404 4405 166 3121 3903 191 6° 17' U 1639 1078 333 3871 3872 450 1572 2857 332 154 164 6° 17' U 60029 331 156 3866 1573 146 157 3767 237 160 4407 3901 85 1629 2852 143 4406 3886 451 242 165 1568 1562 99 142 3885 3874 3904 1578 60030 60069 232 1567 100 3764 3873 1630 2856 2875 192 273 452 add Section 5D and a 16th Schedule 4409 1618 269 4696 4408 3889 3905 319 3763 3888 267 233 3887 1577 166 4411 1632 PEKAN SANGLANG 4410 1631 2391 3892 16331634 4413 3875 3891 2396 4412 4480 60058 235 234 196 3890 1575 2401 43 3120 433 2 3761 4415 1635 3894 272 2406 47 2939 46 4414 3895 3893 2937 2938 2940 2941 2942 2803 51 3759 4516 67 3800 3899 4479 271 60005 3765 3896 1637 68 320 4417 1640 4515 158 4887 1641 430 54 4416 3907 1638 70 1636 to support the implementation of 3119 3808 3897 1605 431 432 578 270 71 56 58 3801 3898 3762 72 59 61 3802 4419 3913 1643 1644 1652 1642 434 2804 324 130 1608 1607 75 63 60061 4418 1447 3809 3916 2583 435 60062 66 3908 1611 1646 3803 1610 1595 1645 79 4422 3910 1651 577 134 436 3760 140 572 1451 4420 4421 131 1592 1593 1596 1647 3758 3810 3911 1648 1649 1650 3118 437 580 4424 1590 3804 4425 1445 1653 1654 1655 an Electronic Land Administration 1598 1597 314 4693 3811 3912 1591 438 268 3812 3813 4423 1600 581 3806 3807 1659 1658 265 3805 4427 439 440 313 1601 1656 1657 582 4426 1580 1661 1662 1448 322 3715 573 132 119 4433 1602 1660 441 323 4958 1581 571 312 133 4428 2705 4434 4429 1582 1671 1672 3814 1583 1668 1669 1670 2930 3817 3818 1663 3815 4431 4623 4692 1584 442 3816 1586 570 4430 1578 1674 4551 1673 System. As a result, some States are 1664 363 3116 3838 1449 1588 1667 3852 2703 1666 2791 3843 1665 3820 3819 5452 569 100003 KEDAH 100004 4432 565 365 2702 230 2604 3821 100005 100010 422 4527 4526 2918 5725 3822 PERLIS 3839 4456 566 568 100006 423 424 100000 5726 3832 564 2704 3840 553 100007 563 916 126 425 567 915 364 developing their own, parallel systems 100011 426 2701 2700 3834 3842 3823 539 3833 4918 3825 427 3824 3835 100012 100008 429 2699 MUKIM SANGLANG 2602 428 3841 100002 2715 100013 540 1269 880 538 3826 3836 5064 311 100001 3828 881 MUKIM SANGLANG 5170 882 918 100361 100009 2697 4537 541 4611 with no assurance that the systems are 2605 3827 100358 883 232 3844 100360 214 2601 884 4919 218 100359 100014 100017 886 516 225 885 2698 2696 3829 3837 2695 515 560 1268 362 4613 100015 4605 346 557 100060 2694 4612 347 273 216 100061 523 231 100075 345 558 2599 4542 compliant with national standards or 8205 100016 344 3830 363 4371 2519 357 213 5050 2574 2521 3846 100076 260 3831 548 126 5051 60060 30 4372 356 GLANGS 1266 5047 358 261 2575 8001 352 227 8001 342 355 60061 2849 32 4373 4689 SG. SAN 5083 353 allow system interoperability. 2576 3847 549 562 561 5665 268 5052 4613 2523 60062 203 6° 16' U 3848 4920 262 6° 16' U 4917 354 226 5086 2577 34 2526 343 60063 100283 1267 5088 35 8248 2578 3853 4614 4921 316 189 3849 5728 318 264 5091 4957 4995 317 263 118 215 2528 2530 200 4724 319 2579 4993 4997 4620 265 115 8184 216 5120 320 191 197 217 4996 188 3850 204 4368 360 201 211 5049 214 116 199 2580 350 8207 321 5054 115 117 3462 224 118 202 90 108 192 4657 119 120 88 In response to the limited success 5056 4922 63 82 125 159 322 323 312 100 314 5048 8224 31 60 69 75 196 111 131 154 8167 4923 223 205 27 37 54 324 914 47 137 148 266 1 21 43 315 2531 142 201 5058 4 TE 15 294 325 4998 195 198 RU 10 361 313 193 SA 289 2582 N 160 MA 283 308 218 326 DA 5098 306 280 219 8366 351 PEKAN KUALA SANGLANG 194 with e-Tanah to date, a new e-Tanah 4369 295 46 220 4615 339 44 A 221 331 2533 AD 8232 8233 M AN 327 2535 45 328 2537 S 335 RU 249 2539 253 47 TE 311 348 364 244 242 23 349 2541 24 333 48 341 248 pilot will be implemented in Kuala 365 334 25 340 359 254 269 49 338 245 26 270 C 250 255 271 27 50 66 243 272 213 256 336 MUARA ASAL 329 366 28 332 2542 SUNGAI SANGLANG 246 267 (1954) 367 2544 330 Lumpur as a model that the other 368 247 29 2546 2548 30 r 251 ya 257 Pa 337 lau 252 133 258 116 2550 Pu 134 259 ara 122 Ut 403 117 369 SELAT MELAKA 31 ik Tit Ke 404 118 121 2554 32 states on Peninsular Malaysia can 405 370 119 406 60040 2552 2365 2556 407 60041 2366 33 408 120 124 60034 2558 409 34 60035 410 60036 125 60042 60037 2363 2560 411 2564 60038 130 3285 2562 adopt. The National Land Council 60001 2487 141 60000 3286 2362 132 2124 2488 114 3287 2489 4482 ANGGARAN JARAK SEMPADAN NEGERI KEDAH DARUL AMAN DAN NEGERI PERLIS YANG DIBUAT dalam dua naskhah AKAN DITANDA DAN DIUKUR OLEH JABATAN UKUR DAN PEMETAAN MALAYSIA has decided that a new pilot will be di ............................., ............................. ANGGARAN pada hari ................, ............................. bersamaan dengan .............................. LOKASI JARAK (km) Dari Paip Sempadan Negeri No. 1/310 ke titik pertemuan Sg. Sanglang dan Sg. Kobah (Titik A), seterusnya berdasarkan pertengahan antara dua Untuk dan bagi pihak Untuk dan bagi pihak tebing aliran asal Sg. Sanglang ke titik pertemuan Kerajaan Negeri Kedah Kerajaan Negeri Perlis undertaken to develop e-Tanah. This Sg. Sanglang dan Terusan MADA (Titik B), seterusnya 5.3 mengikut pertengahan antara dua tebing aliran asal Sg. Sanglang yang telah kering ke muara asal Sg. Sanglang (Titik C) dan kemudian sehingga ke tepi ............................................................................. ............................................................................. pantai mengikut bearing hala ke titik Utara Pulau YAB Dato’ Seri Ahmad Bashah bin Md. Hanipah YAB Dato’ Seri Azlan bin Man Payar S.S.D.K., D.H.M.S., D.S.D.K., K.M.N., A.M.K., S.P.M.P., A.M.P P.P.N., B.K.M., P.J.K., J.P. Menteri Besar Perlis Menteri Besar Kedah pilot will be undertaken in Kuala PETUNJUK Di hadapan Di hadapan Lumpur which is a federal territory Lot tanah dalam Negeri Kedah Sungai ............................................................................... ................................................................................. YB Dato’ Haji Bakar bin Din YB Tuan Ahmad Zamri bin Khairuddin D.S.D.K., P.J.N., A.M.K., B.C.K., B.P.L. P.J.K Lot tanah dalam Negeri Perlis Setiausaha Kerajaan Negeri Kedah Setiausaha Kerajaan Negeri Perlis Sungai Sanglang (Asal) Pengerusi Bersama Pengerusi Bersama Jawatankuasa Penandaan dan Pengukuran Jawatankuasa Penandaan dan Pengukuran where the Federal Government has Sempadan Bersama Negeri Sempadan Bersama Negeri Sempadan negeri Negeri Kedah - Negeri Perlis Negeri Perlis - Negeri Kedah clear authority for land registration. A 100° 12' T 100° 13' T Diterbitkan oleh Jabatan Ukur dan Pemetaan Malaysia 2016 new ICT application will be developed Source: JUPEM 17 Since 2016, however, the latest amendment of the Strata Title Act has enabled strata transactions to be implemented in Malacca and Penang. All manual records were then converted digitally in both states. Enhancing Public Sector Performance: Malaysia’s Experience with Transforming Land Administration 31 Chapter 3. Malaysia’s Land Administration: A Primer BOX 5 PPPs for Land Administration There isn’t a single definition for Public Private Advanced Computing (C-DAC – https://cdac.in) Partnerships (PPPs), but they can typically be was contracted by the Department of Stamps and described as the joining of private and public Registration of the Government of Maharashtra to sector organizations in order to develop or build an IT system for the automation of the deeds deliver improvements to a public service. This registry, which was then rolled-out in 1999. The arrangement usually involves the sharing of both resultant Stamps and Registration Information risks and revenue, and is conducted over the Technology Based Administration (SARITA) has medium to longer-term. been operational since 2001, with automated registration implemented in 360 registration In the context of Land Administration, there are offices. Ultimately, C-DAC reports that the Build- a number of examples of PPP implementation, Operate-Transfer PPP mechanism enabled eight typically on the land registry side where private private industries to run operations on a cost- operators may join government in a Joint Venture sharing basis across all registration sites. The (JV) or similar arrangement to either digitize and model directly resulted in significant reductions operate, build (an IT system) and operate, or just proper ty registration times, with penalties streamline and operate existing land registry applying to the private operators in case of delay, functions. Examples include: a mechanism that would not be possible under government operation. SARITA is reported to have Ontario, Canada: A PPP Joint Venture (JV) helped to increase document registration from an Teranet was formed to digitize paper-based average of 16 to 40 per day, with a consequent land records and automate processes into an 10-15 percent increase in revenue. C-DAC reports electronic title system. The JV came about that the Inspector General of Registration (IGR) after the provincial government had made little Maharastra is the highest revenue generating IGR progress, digitizing only 250,000 of an estimated of all Indian states (this has not been confirmed by 4 million records in 7 years. The JV was a 50/50 other sources). partnership, with equal equity contributions (paid in cash by the private partner, and in kind Other PPPs are documented elsewhere, with a - hardware and software - by the government useful summary in Torhonen et al. (2012) and partner). Ownership of data was retained by Daniels (2017). the government, however the business model included not only a share of property transaction Key advantages of PPPs for land administration as revenue, but an exclusive license to use the data, documented by Daniels (2017) include: enabling the development of new products and • PPP is the right business solution as it enables services from repackaged land data. Through government to utilize the private sector to time, Teranet has evolved from a PPP with the provide low-cost, efficient services and to government of Ontario in 1991, to a share capital unearth new revenue opportunities corporation in 2003, to a publicly traded company • Allow government to facilitate private sector in 2006 and ultimately in 2008 to a privately held investment in a way that free funds for other corporation owned by Boprealis Infrastructure public needs and the Ontario Municipal Employee Retirement • Faster implementation of land administration System. Financially the partnership made money reform for Ontario. In 2010 Teranet paid Ontario C$1 • Reduced costs as the PPP provides incentives billion for a 50-year concession. to minimize costs over the full life-cycle • Better risk allocation Maharashtra, India: In 1998, a local consortium • Better incentives to perform which included the Centre for Development of • Improved quality of services Source: Authors 32 Enhancing Public Sector Performance: Malaysia’s Experience with Transforming Land Administration Chapter 3. Malaysia’s Land Administration: A Primer with the close interaction with the State governments to ensure that the software system meets the needs of the States and is in a form that can readily be customized. In 2016, the Federal government launched a PPP arrangement for development of the new e-Tanah system. This approach is relatively new for land administration systems, with only a few examples available globally. PPPs offer the opportunity to attract private sector funding for land registration services, thereby reducing the burden on public sector financing especially for developing and maintaining an IT infrastructure and the necessary qualified personnel. However, it is important that the PPP is properly structured with an appropriate balance in risks and rewards. It is important that the government retains the rights to the data and ensures that the fees and charges for land administration services are affordable and not a barrier to participation particularly by those less well off. The experience in Ontario demonstrates that it is possible to establish a strong partnership with a private sector partner with strong finances and a focus on the long-term rather than short-term such as an agency that funds pensions. Malaysia has experience and a well-established institutional structure for administering PPPs. Since 1983 the Public Private Partnership Unit under the Prime Minister's Department (UKAS) has administered over 800 PPPs, mainly for infrastructure projects such as ports, roads, airports, and large land developments. More recently ICT projects are coming under the PPP framework. For the e-Tanah system UKAS set up a Committee chaired by the Director General and with representatives from key agencies including Treasury, MAMPU (e-government), JKTPG and EPU (the Economic Planning Unit responsible for capital investments). The Committee and project team under JKTPG are holding user consultations with the States and other stakeholders to ensure their requirements are included. The project progress is reported to the National Land Council and in the Chief Ministers meetings. While the details of the e-Tanah PPP are not publicly available, a few key elements have emerged. The PPP is structured as a 14-year concession, with the operator having 2 years for system development and 12 years to maintain the system, provide services and make a return on the investment. The Contractor is also providing the hardware and software but the system will be installed in a government data warehouse with a government disaster recovery system. The contractor is also responsible for converting any paper based records and for regular training and capacity building. The contractor will develop the core system and provide the source code to Government so that the software can then be customized according to the requirements of individual States. The contractor is required to update the technology twice over the course of the concession (“technology refresh”) and is required to develop 9 modules based on the competencies of the State land registry: registration, strata, revenue, consent, disposal, development, enforcement, state land acquisition, and auction in case of foreclosure. The mapping system, e-Kadaster, will remain a separate system under JUPEM that will be linked with the new e-Tanah along with other external systems such as inland revenue systems, courts, and bailiffs. The financing of the PPP is based on an analysis of current transactions and revenue, cash-flow requirements and the lifespan of the ICT investment. The land offices will continue to collect fees from the citizens and the contractor will get payment from the government based on an agreed portion of the transaction fees and a regular fee/title to maintain the data. The Federal Government is covering the cost of the system design. At the end of the concession period the system will be transferred back to Government. The new e-Tanah database will include the historical land registration data and the data will remain in Government ownership. The system is expected to be piloted in Kuala Lumpur in 2017 and then rolled out to other States, including an upgrade to the existing e-Tanah systems in Penang and Malacca. Enhancing Public Sector Performance: Malaysia’s Experience with Transforming Land Administration 33 Chapter 3. Malaysia’s Land Administration: A Primer Developing and implementing a National Spatial Data Infrastructure (NSDI) Institutions for NSDI have been established at Currently, geospatial data-sharing in Malaysia national and local levels. The Malaysian Centre throug h M y GDI is limited to government for Geospatial Data Infrastructure (MaCGDI) agencies only (government to government, was established in 2002, taking over the work of G2G). Private agencies and the public do not have the National Infrastructure for Land Information access to MyGDI, but can request data directly from System (NaLIS). The Ministry of Natural Resources the relevant agencies. However, the cooperation of and Environment (MNRE) has established the the Government agencies with utility data suppliers NSDI called MyGDI, with a National Coordinating (utilities/gas/oil/telecom) to establish standards Committee which reports to the National Land for utility datasets is an example of cooperation Council and has, under MaCGDI, established a and coordination with the private sector. The National Geospatial Data Centre (NGDC), State Malaysia Geospatial Online Services (MyGOS)18 Geospatial Data Centres (SGDCs) and Local enables government users to use and share trusted Geospatial Data Centres (LGDCs). MyGDI activities geospatial data, services, and applications within are undertaken at the national level by MaCGDI, their group of members. with support from the various technical committees. MaCGDI interacts with MyGDI State Coordinating The MyGeoportal provides access outside of and Technical Committees which undertake SDI government agencies and is widely used by many activities at the State level. JUPEM and JKPTG are professional users. The 1malaysiamap application19 the two main data providers to MyGDI. is designed for public use and enables citizens to search and provide information for points of interest Substantial work has been undertaken to such as shops, restaurants, hotels, and banks. The develop technology, formulate policies, prepare use of crowdsourcing or volunteer geographic g uidelines and develop and disseminate information (VGI) is increasingly recognized as standards. MyGDI includes technology, policies, an important data source for information and the standards and procedures for producing and government plans to link the various systems for all sharing geospatial data, supported by a strong ICT public and private users in the future. infrastructure. MyGeoportal allows data producers and users to explore, view, access and evaluate The Malaysian government plans to adopt a geospatial information through the Metadata formal strategy and enact legislation for NSDI. Catalogue called MyGDI explorer. The metadata The National Geospatial Master Plan (NGMP), which are linked to a map service for visualization of the will set up a 10-year Strategy (2017–2027) for the geospatial data. The information in the MyGeoportal implementation of NSDI policies, is currently being guidelines and circular letters provide guidance to developed. MaCGDI has shared and discussed the agencies in term of requirements and procedures Inception and Interim reports with other Federal for data sharing and dissemination. Standards exist and State agencies. A NSDI law is also being for the majority of datasets and include three types drafted and will formalize the structure, functions of geospatial related standards: content standards, and monitoring and evaluation mechanisms. The access standards and exchange standards. 5-year National Plan (Eleventh Malaysia Plan 2016- Although the NSDI mechanisms are not yet legally 2020) has allocated budget for implementation of binding, the existing Circular letters and guidelines the GMP. are clear and create a regulatory framework for the functioning of MyGDI in Malaysia. 18 http://www.mygeoportal.gov.my/node/86 19 http://1malaysiamap.mygeoportal.gov.my/ 34 Enhancing Public Sector Performance: Malaysia’s Experience with Transforming Land Administration Chapter 3. Malaysia’s Land Administration: A Primer BOX 6 What is National Spatial Data Infrastructure? Geospatial information (GI) has played an increasingly important role over the last two decades in supporting effective decision making to address social, environmental and economic issues. Location is a critical piece of information because everything that takes place in the world happens at some location, however that is described – for example by an image, map co-ordinates, or an address. Location provides a common link to different activities and statistics relating to the same place, and allows different datasets to be combined, viewed, compared, and analyzed. Being able to access up to date, definitive and reliable GI allows decision makers to see where resources, infrastructure and people are located, and the environment they are in. However, having access to such information and using it for evidence based decision making is by no means the norm; many countries lack the types or quality of GI needed, and even where it does exist, it can be difficult to find out what is available, whether it is fit-for-purpose, how to access it, who owns it, or how to use it. Facilitating such an environment often needs a degree of central or “top down” co-ordination, and the result is a Spatial Data Infrastructure (SDI), or where this is organized over a whole country, a National Spatial Data Infrastructure (NSDI). (Kelm et al, 2017:1). Spatial Data Infrastructure (SDI) is a concept that facilitates and coordinates the exchange and sharing of spatial data and services (Harvey et al 2012:23). When organized at the national level SDI is referred to as NSDI. SDI is an infrastructure that provides a policy framework, access technologies and standards (Williamson et al 2010:229). The concept of SDI was developed in the 1990s and has evolved through several iterations. Early SDI initiatives focused on data and data accessibility. Later initiatives evolved to consider product-based approaches and more recently SDI initiatives have shifted to more of a user-oriented approach with a focus on the management of data and applications. Regional efforts, such as those of the European Union to create the Infrastructure for Spatial Information in Europe (INSPIRE) create regional SDIs. In reviewing future trends in geospatial information management the United Nations Committee of Experts on Global Geospatial Information Management (UN-GGIM) foresee: • A focus on citizen services, better land management and the sustainability of services • An increasing trend to bring together data from multiple sources including official statistics, geospatial data, satellite data, big data and crowd-sourced data • Data availability is changing with a huge increase in the tracking and availability of real-time data – data is no longer just for mapping and delivery but for integration, analytics, modeling and aggregation • Governments are moving towards being commissioners of information rather than creating it themselves. The main benefits of creating effective NSDI include: • Better planning, management and monitoring of activities by Government at all levels • Supporting the creation of e-Government services for citizens that are cost-effective, efficient, accessible and transparent • Avoiding the costly duplication of effort in establishing systems and procuring data by establishing a single authoritative version of each core dataset • Providing datasets for all sectors to support their economic and social activities and for the development of new services. Source: Authors Enhancing Public Sector Performance: Malaysia’s Experience with Transforming Land Administration 35 CHAPTER 4 What Can Be Learned From Malaysia’s Experience? 36 Enhancing Public Sector Performance: Malaysia’s Experience with Transforming Land Administration Chapter 4. What Can Be Learned From Malaysia’s Experience? Qualified Titles Qualified titles provide a rapid, fit for purpose means to register land and facilitate the land market. The introduction of qualified titles in the Land Code was a successful mechanism to overcome key constraints in the national program to expand systems to formally record land rights, particularly the limited number of licensed surveyors and the time and costs associated with completing accurate cadastral surveys. Qualified Titles provided a mechanism to register land quickly and it was used on significant scale by State and private developers. The success can be linked to the fact that both qualified and final titles were clearly specified in national legislation, the procedures and systems used to register both types of titles were largely the same and there is a clear process to convert qualified title to final title. While the early process to issue qualified title based on sketches prepared by non-surveyors created some issues for land administrators (for example the sketches do not provide precise measurements), it had little negative impact on the perception by the public and the market about the security of tenure, as evidenced by stable market prices and the willingness of banks to provide mortgages using the qualified titles to land as collateral. Over time, the standards and processes for cadastral surveys have been improved and a special task force for the conversion of qualified titles to final title has been introduced and is largely successful. Introducing qualified titles to quickly register land is a good model for countries with limited capacity or qualified surveyors. ICT Solutions and Data Integration Data integration can be used to overcome complex institutional mandates and using ICT solutions for improved service delivery. The introduction of ICT solutions for land administration has facilitated two related improvements for service delivery. Firstly, system and data integration will help to overcome the complex division of responsibility between the federal and state governments for cadastre and land registration. When it is not possible to introduce institutional reforms and combine the functions for the cadastre and land registry under a single authority, then data and service integration can be a suitable solution. Secondly, service delivery can be improved by introducing digital data and systems. JKPTG has been able to implement significant improvements through the development of ICT systems such as SPTB and plans for further improvements in the development of e-Tanah. The effectiveness of these improvements is reflected in the Doing Business Ranking. The introduction of e-Tanah and the development of clear interfaces to other systems, particularly e-Kadaster, will improve services and help generate the spatial and textual data that Malaysia needs to successfully implement the NSDI. Data integration allows for improved applications using land and real property information. One example is for property valuation and taxation. Malaysia has a long history in terms of applying a tax on real property. Known as ‘rates,’ it is one of the Enhancing Public Sector Performance: Malaysia’s Experience with Transforming Land Administration 37 Chapter 4. What Can Be Learned From Malaysia’s Experience? most important sources of revenue for local governments. While the majority of local governments in Malaysia still use a manual approach to the valuation of properties, the use of automated valuation methods using integrated land administration information is increasing within the larger local governments. However most local governments in Malaysia have not been able to update their valuation lists and the Department of Valuation and Property Services Malaysia (JPPH) has limited capacity to support local governments. In 2014 the recurrent property tax in Malaysia only contributed about 0.5 percent of GDP compared to the about 1 percent collected in OECD countries. The development and implementation of a national taxation policy for local government could provide the basis for increased property tax collection. The revision of the Local Government Act of 1976 and a shift in the basis of valuation for the rating system would be key elements in this new policy as would be support for the implementation of computer assisted mass appraisal (CAMA). Public-Private Partnerships (PPPs) The PPP model for land administration systems offers a new approach for land administration data and system integration. Due to the limited acceptance of the current e-Tanah system by States, the Federal government has launched a pilot, using a PPP arrangement, for development of the new e-Tanah system. This approach is relatively new for land administration systems, with only a few examples available globally. Malaysia has experience and a well-established institutional structure for administering PPPs under UKAS. While the majority of PPPs have been for infrastructure, ICT projects are also coming under the PPP framework. Malaysia combines the PPP contract management experience of UKAS with the subject matter input from the relevant technical agencies through the project Committee. The Committee and project team are holding user consultations with stakeholders to ensure their requirements are included and project progress is reported to both the National Land Council and in the Chief Ministers meetings. While the results and success of the PPP for land administration has yet to be assessed, the government has put in place the management, stakeholder coordination, monitoring and reporting mechanisms that have been the structure of other PPPs in the country. National Spatial Data Infrastructure (NSDI) There is a sound basis for development of the NSDI in Malaysia. A dedicated institution for NSDI has been set up which provides clear coordination and management functions through secretariats, steering committees, and working groups. The NSDI activities have been aligned to the e-Government agenda, and there is an open data initiative. Substantial work has been undertaken to develop technology, formulate policies, prepare guidelines and develop and disseminate standards in support of data inter-operability. Malaysia is one of the countries that is continuously working towards a 38 Enhancing Public Sector Performance: Malaysia’s Experience with Transforming Land Administration Chapter 4. What Can Be Learned From Malaysia’s Experience? fully-fledged digital community and government, investing in a strong ICT infrastructure to manage data and link systems and information. Several systems have been developed and implemented using spatial based information with accurate mapping, framework data, metadata, and a geoportal to provide a single access point. Also, the Malaysian Government encourages geospatial information research and development by making annual grants available for innovative applications and solutions. Policy and inter-agency coordination Strong national level coordination is needed to manage complex institutional arrangements for land administration. Malaysia is a Federal state and under the Constitution, land is a State matter. The Land Code for Peninsular Malaysia was formulated by the Federal government under its powers to make laws for the purpose of uniformity but the States retain significant powers in land matters. Land rights on Peninsular Malaysia are recorded in State Land Offices. However, at the federal level JUPEM is responsible for undertaking cadastral surveys and managing the cadastral map series. The separate legal basis for land tenure and land administration in Sabah and Sarawak further complicates the matter. In an attempt to ensure coordination between the federal and State agencies and institutions responsible for land administration, the National Land Council was set up to provide a mechanism for formulating national land policy. The National Land Council enjoys high level leadership and has representatives from the state and federal level. However, since this mechanism places a strong emphasis on consensus, it involves rigorous prior consultations between federal and state authorities in overcoming the significant gaps in land administration data and system integration. In order to benefit fully from a NSDI, efforts are needed to move beyond policies and standards. The majority of agencies and organizations that provide or use geospatial data are motivated by their own mission and do not necessarily subscribe to national policy objectives. Over the past decades Malaysia has developed its NSDI through guidelines and standards and the NSDI institution has been established. However, there is still no national NSDI strategy or law. While the NSDI agency is preparing a Geo Master Plan with a 10-year strategy (2017-2027) and a draft law to support NSDI, approval and implementation require further time and political support. Adopting an NSDI law will provide further basis for coordination around national-level objectives. Data sharing and exchange are important prerequisites for efficient land administration. Aside from agencies being motivated by their own mission, sharing information in a fully transparent manner is not the main characteristic of the Malaysian administrative culture. While Malaysia has made some progress toward readiness for open data, 20 inter- and intra-agency communication is still linked to hierarchy and authority. As a result, information exchange is limited. The GMP will have to develop clear strategies to overcome these critical cultural and institutional barriers to the successful implementation of NSDI in Malaysia and the socio-economic benefits need to be fully recognized, discussed and quantified. 20 See World Bank 2017. Open Data Readiness Assessment (ODRA) for Malaysia. Enhancing Public Sector Performance: Malaysia’s Experience with Transforming Land Administration 39 CHAPTER 5 Summary and Conclusions: Key Takeaways for Other Countries 40 Enhancing Public Sector Performance: Malaysia’s Experience with Transforming Land Administration Chapter 5. Summary and Conclusions: Key Takeaways for Other Countries The following key strengths from the experience in Malaysia provide important lessons for other countries: a) The issuance of qualified titles with a lower standard for spatial definition can be an effective means of implementing systematic registration where the qualified titles and any subsequent dealings with these titles are managed in the same system that registers full or unqualified titles. b) Business-Process Re-Engineering is an effective tool to make significant changes to service delivery. When implemented with strong political support it provides the means to break down strong ‘silos’ in systems that have evolved over long periods of time. c) ICT tools can be effective in standardizing processes, improving service delivery and making spatial and textual data available for broader use in government and society. d) In a complex institutional environment there should be a clear, authoritative mechanism to formulate and implement land policy. This is particularly so where there is the need to ensure that the rights of the vulnerable such as indigenous groups are protected. e) PPPs offer an innovative business model for governments to consider but due consideration needs to be made around the governance of the design, contracting, implementation, monitoring and impact because ensuring secure property rights and a well-functioning land market are a cornerstone for economic development and social stability. Learning of Malaysia’s limitations can be instrumental as well: f) When possible, it is advisable to avoid complex national/state division of the cadastre and land registry. Cadastral and land registry data and systems need to be integrated in order to provide complete and accurate land administration data to both public and private users. The most efficient way to ensure seamless integration is to have a single system for the information under a single authority. In the absence of an integrated institutional structure, a strong coordination mechanism with mandatory compliance for data integration is critical. g) An effective NSDI requires a clear policy and legal framework in order to define the roles and responsibilities of data suppliers and users. While governments may choose to start NSDI development prior to a formal policy and legal framework, developing a mature and efficient SDI requires clear manadates, roles and responsibilities for all parties. 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Doing Business 2018: Reforming to Create Jobs. Washington, DC: World Bank. https://openknowledge.worldbank.org/handle/10986/28608 Zulkifli N A, Rahman A A, van Oosterom P, Choon T L, Jamil H, Hua T C, Seng L K, Lim C K, 2015, The Importance of Malaysian Land Administration Domain Model: Country Profile in Land Policy, J. Land Use Policy, 45 (2015), 649-659. Enhancing Public Sector Performance: Malaysia’s Experience with Transforming Land Administration 43 CONNECT WITH US wbg.org/Malaysia @WorldBankMalaysia @WB_AsiaPacific blogs.worldbank.org/category/ countries/malaysia