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Land Amalgamation Malaysia
Amalgamation is the process of combining two or more adjoining pieces of alienated land. Originally the lands are held under separate land-titles, after the lands are combined, they will be held under a single land title with all proprietors appearing in the title together with their shareholdings. The other titles cease to function.
Land amalgamation in Malaysia
Apart from Malaysia, there are many countries which are faced with the question of amalgamation. With increase in populations across the world, there has been further and further subdivision of land. The major reason for land subdivision has for a long time been through inheritance; the inheritors subdivide land property amongst themselves. The other reason is the increased commercialization of land. Land sellers prefer to subdivide land into small plots that may seem cheaper to buyers but at the same time earn sellers much more than if they sold it as a whole. With time, land ownership has reduced to purchases of very small pieces of land. Most governments have put in place policies to facilitate the process of amalgamation. This only means that there are definite benefits such governments envision that would be achieved through the process of amalgamation. In this article we look at what is land amalgamation in Malaysia and what are the benefits that come along with it.
Benefits of land amalgamation
Land amalgamation offers a number of benefits to both the government as well as individual land owners. Here are a number of benefits that can be realized from land amalgamation in Malaysia;
- Enjoying economies of scales
Land owners as well as land developers in Malaysia are likely to benefit from economies of scales when they amalgamate small pieces of land into larger portions. Consider for instance the cost of tilling land for agricultural purposes; tilling small pieces of land will definitely cost much. In addition, it may be practically impossible to employ modern machinery on very small pieces of land. Accessing such services as security for individual alienated pieces of land could also be costly. Land amalgamation in Malaysia is there good for increased profitability, efficiency and effectiveness of development projects. Find out more about investing in land Malaysia.
At the end of the development or production process, amalgamation makes it easy to plan for further production, and finding markets for the products.
On the government side, it is easier to file tax returns and maintain records for further use.