Chances are you may hear about terms of bumiputra lot, bumiputra quota, bumiputra discount, Malay Reserve lands. In Malaysia properties, those terms are very common. Let’s get through the terms and what does the terms really mean.
In general, Bumi Lots are open for sale or lease only to Bumiputera, and Bumiputera is inclusive of Malays, Sabahan and Sarawakians, and also non-Malay Muslims. It is worth to note that a Bumi lot is cheaper than a non-Bumi Lot, usually by at least 5% up to 15%. This is due to the Bumi Discount, which is a mandatory minimum discount offered to Bumiputeras on property.
Let’s delve into details of what is Bumi Lots, Bumi Quota, Bumi Discounts and Malay Reserve lands (MRL) also known as Tanah Rezab Melayu in Malay.
- Bumi Lot:
- Bumi lot refers to properties reserved specifically for Bumiputera, which are indigenous Malaysians.
- These properties are set aside to promote Bumiputera participation in property ownership and economic advancement.
- Bumi Quota:
- Bumi quota is the percentage of units within a development that are allocated for Bumiputera buyers.
- It’s a rule set by the government to ensure a certain portion of properties are available exclusively for Bumiputera.
- It is worth to note that different states in Malaysia have different quota and discounts.
- Bumi Discounts:
- Bumi discounts are price reductions offered to Bumiputera buyers for properties within the bumi quota.
- These discounts aim to make properties more affordable for Bumiputera buyers and encourage their participation in the property market.
- Malay Reserve Lands:
- Malay reserve lands are areas of land specifically designated for Malay ownership or occupation.
- These lands are legally protected and can only be owned or used by Malays, as defined by Malaysian law.
These simplified explanations should provide a clearer understanding of these terms related to property ownership and allocation in Malaysia.
reference: iproperty