Legal considerations for urban underground space development in Malaysia

In 2008, the Malaysia land code, named the National Land Code 1965 (NLC 1965), was amended to add Part Five (A) to deal with the disposal of underground space. In addition, the Circular of the Director General of Lands and Mines No. 1/2008 was issued to assist the application of Part Five (A) of the NLC 1965. However, the legislation is still questionable and has instigated many arguments among numerous actors. Therefore, this research was undertaken to examine legal considerations for the development of underground space. The focus is on four legal considerations, namely underground space ownership, the bundle of rights, depth, and underground space utilization. Rooted in qualitative methods, interviews were conducted with respondents involved in the development of underground space in Malaysia. The obtained data were then analyzed descriptively. The findings differentiated the rights of landowners for surface land and underground space, and their liability for damages and the depth. It was indicated that the current legislation in Malaysia, namely Part Five (A) of the NLC 1965 and the Circular of the Director General of Lands and Mines No. 1/2008, is adequate to facilitate the development of underground space in terms of legal considerations. However, to further facilitate the development of underground land in the future, based on the research, four enhancements are recommended for legal considerations pertaining to the development of underground space in Malaysia.