MARAN (July 8, 2026): The Malaysian government plans to amend the Land (Group Settlement Areas) Act 1960 (Act 530) to allow more than one house to be built on a single residential lot owned by Federal Land Development Authority (Felda) settlers.
Prime Minister Datuk Seri Anwar Ibrahim said he has instructed Felda to prepare draft amendments to the legislation within two months for submission to the Cabinet before being tabled in Parliament later this year.
Legal reform to support second-generation housing
The proposed amendment aims to address the growing housing needs of second-generation Felda families by allowing additional homes to be legally constructed on existing residential lots.
Currently, approximately 8,000 houses have already been built on individual Felda lots and have been occupied as of December 31, 2025, despite existing legal restrictions.
While the legislative amendments are being finalised, the government will immediately approve water and electricity connections for these homes.
Responsibility for water supply will be handed over to the respective state governments, while Tenaga Nasional Berhad (TNB) has been instructed to expedite electricity connections.
Progress of Felda New Generation Housing Project
The Prime Minister also provided an update on the Felda New Generation Housing Project (PGBF), introduced in 2013.
The programme currently covers:
43 project sites
8,224 housing units
Seven states across Malaysia
Project progress includes:
12 completed sites comprising 2,458 housing units (29.8%), with Certificates of Completion and Compliance (CCC) issued.
13 active construction sites involving 2,546 units (30.9%), with most projects scheduled for phased completion.
New housing projects planned
Construction scheduled for 2026 includes:
Besout, Perak – 102 units
Sungai Koyan, Pahang – 68 units
Pasoh, Negeri Sembilan – 540 units
Subsequent phases will include developments at:
Sungai Koyan, Pahang – 89 units
Maokil, Johor – 540 units
Bukit Jalor, Negeri Sembilan – 239 units
Sungai Tekam, Pahang – 100 units
Papan Timur, Johor – 539 units
Projects planned for the following year include:
Kerteh 5, Terengganu – 110 units
Palong 8 Sites A & B, Negeri Sembilan – 300 units
Bukit Rokan Utara, Negeri Sembilan – 300 units
Additional funding approved
The government has approved:
RM150 million to complete 554 abandoned PGBF housing units in Johor and Terengganu.
RM20 million to complete the Felda Sentuhan Kasih (SKF) housing projects involving:
86 units in Laka Selatan, Kedah.
100 units in Palong 16, Negeri Sembilan.
These initiatives are intended to improve housing opportunities and living standards for younger generations of Felda settlers.
Generation land lots and staff housing
The government also identified 31,954 Felda Generation Lots requiring urgent action, comprising:
Johor – 15,438 lots
Pahang – 16,000 lots
Kelantan – 244 lots
Terengganu – 137 lots
Negeri Sembilan – 100 lots
In addition, RM450 million has been allocated to repair and rebuild staff housing in Felda settlements nationwide.
Coordination with state governments
To facilitate implementation of the proposed legal amendments and housing initiatives, a meeting involving all Menteri Besar and Chief Ministers will be held in August 2026.
The meeting will discuss amendments to land legislation and strengthen cooperation between the Federal Government and state governments to accelerate second-generation housing development across Felda settlements.
Key Takeaways
The government plans to amend the Land (Group Settlement Areas) Act 1960 to legally allow multiple houses to be built on a single Felda residential lot.
Around 8,000 homes already built on Felda lots will immediately receive water and electricity connections while awaiting the legal amendments.
The proposed reform aims to address long-standing housing shortages faced by second-generation Felda families without requiring additional land allocation.
The Felda New Generation Housing Project (PGBF) continues to expand, with over 8,200 housing units planned across seven states and nearly one-third already completed.
Additional government funding of RM170 million has been allocated to revive abandoned housing projects and complete welfare housing developments.
The identification of nearly 32,000 Generation Lots demonstrates the government's continued focus on improving long-term housing opportunities within Felda communities.
From a property perspective, the proposed legal amendment could significantly increase residential development potential within existing Felda settlements while improving infrastructure delivery and supporting sustainable community growth.
Yao Mu Realty, based in Kuala Lumpur, Malaysia, specializes in industrial real estate for factories and land, delivering professional and efficient solutions.
Posted by Yao Mu Realty Sdn Bhd on 8 Jul 26
Malaysia