Is Squatting Legal in Malaysia After the 2026 Policy Reforms?

No. Squatting in Malaysia is criminalized under the Penal Code (Act 574) and the National Land Code 1965, with unauthorized occupation of land or property punishable by fines, imprisonment, or both. The Malaysian courts have consistently ruled against squatters, and enforcement agencies like the Land Office and police actively remove illegal occupants. Recent 2026 amendments to the National Land Code further tighten penalties for squatting, including mandatory evictions and higher fines for repeat offenders.


Key Regulations for Squatting in Malaysia

  • Penal Code (Act 574), Section 441–448: Criminalizes criminal trespass, with unauthorized entry onto private property punishable by up to 3 years imprisonment, a fine, or both. Squatting on agricultural or developed land falls under this provision.
  • National Land Code 1965, Section 425–427: Prohibits unlawful occupation of alienated land. Landowners may apply for eviction orders through the Land Office, and squatters face immediate removal under Section 427(1). The 2026 amendments introduce expedited eviction processes for state land.
  • Specific Relief Act 1950, Section 8: Allows landowners to seek injunctions against squatters, compelling their removal. Courts may also order compensation for damages caused by illegal occupation.