GOVERNANCE GLOBAL PRACTICE Public Disclosure Authorized NOVEMBER 2017 THE MALAYSIA DEVELOPMENT EXPERIENCE SERIES Enhancing Public Public Disclosure Authorized Sector Performance Malaysia’s Experience with Transforming Land Administration Public Disclosure Authorized Public Disclosure Authorized 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 [email protected] 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