Planning Law 101: 3 Things You Need To Know

What is Planning Law?

Planning law in Malaysia is governed under the Town and Country Planning Act 1976 (Act 172) which confers on the local authorities wide powers and responsibility for the managing and carrying on the daily administration of land use planning decision-making and development control regime (i.e. to control land use planning, control and conversation (i.e. for the environment and heritage as well) of all lands and building within their local authority parameters) However, this Act is only applicable to all states in Peninsular except for the Federal Territory.

Hence, the remaining Planning Law Acts which are:-

• Federal Territory (Planning ) 1982
• Town & Country Planning Ordinance 1952 of Sarawak
• Town & Country Planning Ordinance 1950 of Sabah

Who are the Local Authorities and What are their Functions?

Under section 5(1) of the TCPA 1972, every local authority shall be the local planning authority for the area of the local authority. Under subsection (2), any area in the State that does not fall in any area of a local authority, the State Director shall be the local planning authority.

Examples of Local Authorities are:-

• City - City Hall (Dewan Bandaraya) e.g. DBKL or City Council (Majlis Bandaraya) e.g. MBPJ, MBSA, MBJB, etc
• Municipality - Municipal Council (Majlis Perbandaran) e.g. MP Kuala Selangor
• Rural Area - District Council (Majlis Daerah) e.g. MD Kota Tinggi, MD Jelebu
• Special and Modified Local Council - Corporation, Development Board, Development Authority or also known as Pihak Berkuasa Tempatan e.g. Perbadanan Putrajaya

The functions of the local authority are enshrined in section 5 of the TCPA. The following are the local authorities’ functions:-

1. To regulate, control, and plan the development and use of all lands and buildings within its’ area;
2. To undertake, assist in, and encourage the collection, maintenance, and publications relating to town and country planning and its methodology; and
3. To perform such other functions as the State Authority or the Committee may from time to time assign to it.

How is Planning Law Important to You?

Planning not only provides for the powers of the authorities and an integrated system between the State Government and the local authorities but it also creates a collaboration between the local authorities and the public. In this regard, a written policy, a Structure Plan (e.g. the Kuala Lumpur Structure Plan 2040 which was gazetted on 19.10.2023) that sets out the proposed state strategies and policies on the development and use of land for a period of 15 to 20 years with priority areas such as management of traffic, sustainable development, promotion of economic growth and more.

The collaboration extends to the preparation of a local plan and special area plan. In this regard, your housing area and surrounding area will be affected. Especially in relation to developments, traffic management, landscape, land use, preservation of trees and planting, and more.

Additionally, in light of any planning permission obtained by a developer or any such relevant persons from the local authorities, it will be subjected to the public’s scrutiny as to whether the local authorities have complied with the proper process i.e. duty to notify and hear objections of the public. Non-compliance with due process will result in the planning permission granted being invalid.

This was the case in the recent Federal Court decision of Perbadanan Pengurusan Sunrise Garden Kondominium v Sunway City (Penang) Sdn Bhd & Ors and another appeal [2023] 2 MLJ 621. The case was in regard to a judicial review seeking to quash the decision of the Penang State Planning Appeal Board in setting aside planning permission to Sunway filed by the Respondents. The Appellants had objected to the planning permission as no reasons were given by the local authority for the decision nor why the objections were found to be without basis or merit.

The Federal Court held allowing the appeal that the Pelan Dasar or zoning plan produced under previous legislation which was repealed at the time of the application for the planning permission was invalid in law. Hence, the planning permission granted by the local authorities was ultra vires and void. This was due to the failure of the planning permission to conform with the structure plan and was in contravention to TCPA. In light of the planning permission being in deviation from national policy, the local authorities were required to give reasons for granting the planning permission to Sunway for its development.