---
title: "What Is a Bumi Lot and How Does the Quota Work?"
description: "A bumi lot is a unit reserved for Bumiputera buyers at a 5% to 15% discount. Quota and discount by state, the title check, and selling to a non-bumi."
datePublished: "2026-03-27"
dateModified: "2026-03-27"
canonical: "https://www.superhomes.my/resources/bumiputera-lot-malaysia"
---

# What Is a Bumi Lot and How Does the Quota Work?

## Bumiputera Lot vs Non-Bumi Property: What Buyers Need to Know

The concept of the Bumiputera lot is one of the most distinctive features of Malaysia's property market. Whether you are a Bumiputera buyer looking to maximise your discount or a non-Bumiputera purchaser trying to understand what units are available to you, knowing how the Bumi quota system works is essential before committing to any property purchase.

This guide explains what a Bumiputera lot is, how the Bumi discount is structured across different states, what restrictions apply when selling Bumi units, and how non-Bumi buyers can navigate the system to find suitable properties.

**Important:** Bumi quotas, discounts and release rules are state policies, not a single national law. Each state sets and changes its own rules, and many are not published in full. The state figures below are the ones we could trace to a source, with the source and date. Where we could not pin a figure down, we say so. Before you rely on any number, confirm it with the developer, your lawyer, and the state housing board or Land and Mines Office (PTG).

## What Is a Bumiputera Lot in Malaysia?

A Bumiputera lot is a property unit within a development that has been reserved exclusively for Bumiputera purchasers.

**Bumiputera meaning:** "Bumiputera" is Malay for "sons of the soil" (*bumi* = earth or soil, *putera* = son or prince). It refers to Malays and the indigenous peoples of Malaysia. Article 153 of the Federal Constitution names "the Malays and natives of any of the States of Sabah and Sarawak"; the Orang Asli of Peninsular Malaysia are also treated as Bumiputera under government policy, including for Bumi lot purchases (Selangor's quota system, for example, lists Malays, natives of Sabah and Sarawak, and Orang Asli).

### How the Bumi Quota Works

State governments in Malaysia require property developers to set aside a percentage of units in new developments for Bumiputera buyers. This allocation is commonly referred to as the Bumi quota. The percentage is set by each state and can differ by location, price and property type. For housing it is commonly at least 30%, and some states or areas set it much higher: Melaka's residential quota has been reported at 40% to 60%, and a former housing minister said in 2018 that some states go up to 70%.

For example, in a condominium development of 500 units with a 30% quota, the developer would have to set aside 150 units for Bumiputera purchasers. These reserved units are typically spread across different floor levels and unit types so that Bumi buyers have access to a fair selection.

*Sources: [Federal Constitution, Art. 153](https://lom.agc.gov.my/federal-constitution.php); [LPHS e-QUOSEL FAQ (Selangor)](https://kuotalphs.selangor.gov.my/questionAll); [EdgeProp, KPKT to review Bumiputera quota policy, 8 Oct 2018](https://www.edgeprop.my/content/1431560/kpkt-review-bumiputera-quota-policy-release-mechanism); [LBS/iProperty state table, 28 Jun 2022](https://lbs.com.my/lbs-voice/property-guides/bumi-lot-how-to-check-its-status-and-the-reasoning-behind-different-bumi-quota-in-each-state/). Checked 1 October 2026.*

### Who Qualifies as Bumiputera?

To purchase a Bumiputera lot, the buyer must generally be one of the following:

- **Malay** -- under Article 160 of the Federal Constitution, a person who professes Islam, habitually speaks the Malay language, conforms to Malay custom, and meets the birth or domicile conditions in that Article.
- **Orang Asli** -- indigenous peoples of Peninsular Malaysia.
- **Natives of Sabah and Sarawak** -- as defined in Article 161A of the Federal Constitution, including Kadazan-Dusun, Iban, Bidayuh, Melanau, and other recognised indigenous groups.

Eligibility is decided by each state's rules, and the edges differ. In Selangor, for example, the state's quota FAQ says a non-Malay who converts to Islam (*mualaf*) is treated as non-Bumiputera for quota purposes. Developers usually verify status from the buyer's MyKad and often the birth certificate, which records the parents' ethnicity.

*Sources: [Federal Constitution, Arts. 160 and 161A](https://lom.agc.gov.my/federal-constitution.php); [LPHS e-QUOSEL FAQ (Selangor)](https://kuotalphs.selangor.gov.my/questionAll); [LBS/iProperty, 2022](https://lbs.com.my/lbs-voice/property-guides/bumi-lot-how-to-check-its-status-and-the-reasoning-behind-different-bumi-quota-in-each-state/). Checked 1 October 2026.*

## Non-Bumi Lot Meaning

A non-bumi lot is a unit with no Bumiputera restriction, so any buyer can purchase it regardless of ethnicity. A former Bumi lot that the state has released for open sale also counts. Non-bumi buyers cannot buy an unreleased Bumi lot from the developer at launch. For the route in detail, see [how a non-bumi can buy a bumi lot](/resources/how-to-buy-bumi-lot-non-bumi-malaysia-2026).

## Bumi Lot Not Specified Meaning

"Bumi lot: not specified" on a listing means the seller or agent has not stated whether the unit carries a Bumiputera restriction. It does not mean the unit is non-bumi. Confirm with a title search, the SPA and any written state release before you commit.

## Bumiputera Discount: How Much Do Bumi Buyers Save?

One of the most significant financial advantages of purchasing a Bumiputera lot is the Bumi discount. This is a price reduction that developers must give on Bumi-quota units bought directly from them. The rate is set by each state and can differ by property type and price.

### Bumi Discount Rates by State

| State | Reported Bumi discount | How firm is the figure |
|-------|------------------------|------------------------|
| Selangor | 7% residential; 10% commercial and industrial | State source: these are the rates LPHS collects back from developers when it releases quota units (e-QUOSEL FAQ) |
| Johor | 15% | Stated by the Johor housing exco chairman (Kosmo, 25 Apr 2026); also reported in 2018 |
| Sabah | 5%, plus any discount or rebate the developer gives non-Bumi buyers | State policy effective 1 Dec 2024 (Borneo Post) |
| Kuala Lumpur | 5% to 7% | Sources disagree (5% in a 2022 guide, 7% in a 2019 guide); confirm with the developer |
| Penang | 5% | Reported in a 2022 guide; not confirmed from a state document |
| Perak | Minimum 5% (low-cost excluded) | Reported in a 2022 guide |
| Kedah | Minimum 5% | Reported in a 2022 guide |
| Terengganu | 7% to 7.5% | Reported in a 2022 guide |
| Melaka | 5% to 15% | Reported in a 2022 guide |
| Negeri Sembilan | 7% to 10% | Sources disagree; confirm with the developer |
| Pahang, Kelantan, Perlis, Sarawak | Not confirmed | We could not find a reliable current figure. Much of the land in Kelantan and Perlis is Malay reserve land |

*Sources: [LPHS e-QUOSEL FAQ](https://kuotalphs.selangor.gov.my/questionAll); [Kosmo, 25 Apr 2026](https://www.kosmo.com.my/2026/04/25/20-peratus-lot-bumiputera-tidak-terjual-di-johor-bahru/); [EdgeProp, 2 Oct 2018](https://www.edgeprop.my/content/1429663/johor-rehda-do-away-15-bumiputra-discount); [Borneo Post, 29 Nov 2024](https://www.theborneopost.com/2024/11/29/sabah-to-enforce-30-pct-bumiputera-housing-quota-policy-starting-dec-1-2024/); [LBS/iProperty, 28 Jun 2022](https://lbs.com.my/lbs-voice/property-guides/bumi-lot-how-to-check-its-status-and-the-reasoning-behind-different-bumi-quota-in-each-state/); [StarProperty, 18 Jul 2019](https://www.starproperty.my/news/property-news/what-you-need-to-know-about-malay-reserve-land-and-bumiputera-land/113715). Checked 1 October 2026.*

### How the Discount Is Applied

The Bumi discount is calculated on the selling price of the property. For example, if a condominium unit is priced at RM500,000 and the applicable Bumi discount is 7%, the Bumiputera buyer would pay RM465,000 -- a saving of RM35,000.

This discount applies only to new property launches purchased directly from the developer. It does not apply to subsale (secondary market) transactions between individual buyers and sellers.

### Impact on Developers

Developers absorb the cost of the Bumi discount. To compensate, some developers factor the discount into their overall pricing strategy, which can marginally affect the listed prices of non-Bumi units within the same project. Buyers should be aware that pricing across a development may reflect this cross-subsidisation.

## Restrictions on Selling Bumiputera Lots

Bumiputera lots come with significant resale restrictions that both Bumi sellers and prospective non-Bumi buyers need to understand.

### The Consent Requirement

A Bumi lot usually carries a restriction on its title that bars a transfer to a non-Bumiputera without the consent of the State Authority. The owner applies through the state Land and Mines Office (PTG) or the district land office. In Selangor, for example, the PTG lists a transfer from a Bumiputera individual or company to a non-Bumiputera individual as a decision for the Menteri Besar, with an RM50 application fee. Without consent, the land office will not register the transfer.

**Exception: Sabah.** Under the policy Sabah applied from 1 December 2024, Bumiputera homeowners may resell their homes without restriction. Check the title and the SPA all the same, because older units may still carry an endorsement.

### The Release Process

There are two different releases, and buyers often mix them up:

1. **Developer release of unsold quota units.** A developer that cannot sell its Bumi units applies to the state housing board to release them to all buyers, usually only after construction reaches a set stage, and usually repays the Bumi discount to the state. In Selangor, the developer can apply only once the project is 50% complete on site, and LPHS collects 7% of the selling price for each released residential unit (10% for commercial and industrial). In Perak, LPHP advertises the units for six months first. It can then release 50% of the Bumi lots in a phase once construction reaches 35% and 70% of the non-Bumi lots are sold, and the rest at 75% construction and 80% sold.
2. **Individual (subsale) release.** An owner who wants to sell a Bumi unit to a non-Bumi buyer applies to the state for the release and for consent to transfer. Perak has a separate individual (subsale) release application: an RM500 fee, with the SPA or a valuation report, the title, an official search and Form 14A. Whether you must first try to find a Bumi buyer, and what fee or levy is charged, varies by state and is often not published. Ask the state housing board or PTG before you sign with a non-Bumi buyer.

*Sources: [PTG Selangor, consent to transfer](https://ptg.selangor.gov.my/index.php/pages/view/482); [LPHS e-QUOSEL FAQ](https://kuotalphs.selangor.gov.my/questionAll); [LPHP Perak, Borang LPHP (KB) 1/2026, amended Aug 2026](https://www.lphp.gov.my/index.php/korporat/media/hebahan-integriti-tatakelola/pemaju-perumahan/61-borang-permohonan-penetapan-dan-pelepasan-lot-kuota-bumiputera-bagi-skim-perumahan-perniagaan-industri/file); [Borneo Post, 29 Nov 2024](https://www.theborneopost.com/2024/11/29/sabah-to-enforce-30-pct-bumiputera-housing-quota-policy-starting-dec-1-2024/). Checked 1 October 2026.*

### Typical Timeline

There is no national timeline. Selangor's LPHS says it processes a complete developer release application in 14 working days. State consent to a transfer generally takes at least three months, according to law firm Mah Weng Kwai & Associates, which is why SPAs often allow six months for it. An individual release plus consent can take longer, so build a buffer into the SPA completion period.

*Sources: [LPHS e-QUOSEL FAQ](https://kuotalphs.selangor.gov.my/questionAll); [Mah Weng Kwai & Associates, Property Transactions Requiring State Consent, updated 20 Jun 2024](https://mahwengkwai.com/property-transactions-requiring-state-consent/). Checked 1 October 2026.*

### Price Implications for Resale

When a Bumi lot is released for sale to a non-Bumi buyer, it is usually sold at market value, with no Bumi discount. The Bumi seller may realise a higher price relative to their original discounted purchase price, but may also have to pay a release fee or levy, which some states peg to the original discount. Factor that in before agreeing a price.

### What Happens If a Bumi Unit Is Sold Without Release

Selling a quota unit to a non-Bumi buyer without the state's release causes problems that can land on the buyer. In Selangor, LPHS charges a developer 5% of the selling price for each quota unit sold to a non-Bumiputera without approval, on top of repaying the discount. In 2023, EdgeProp reported that about 574 homeowners in Rawang who had unknowingly bought Bumi quota units were asked to pay 12% of the purchase price (the 7% discount plus the 5% charge), about RM13 million in total, before their titles could be transferred.

*Sources: [LPHS e-QUOSEL FAQ](https://kuotalphs.selangor.gov.my/questionAll); [EdgeProp, 7 Nov 2023](https://www.edgeprop.my/content/1907657/homeowners-unknowingly-sold-bumiputera-lots-slapped-rm13m-penalty-fees); [EdgeProp, 9 Nov 2023](https://www.edgeprop.my/content/1907673/bumiputera-lots-why-should-innocent-house-buyers-pay-state-agencies%E2%80%99-negligence). Checked 1 October 2026.*

## What Non-Bumi Buyers Should Know

Non-Bumiputera buyers cannot purchase Bumi-designated lots directly from a developer during a new launch. However, there are legitimate pathways to acquiring former Bumi lots, and understanding these options can widen your property search.

### Released Bumi Lots

A released Bumi lot is a unit that was originally reserved for Bumiputera buyers but has been officially released by the state government for sale to any buyer, regardless of ethnicity. These units become available when:

- The developer has been unable to sell the Bumi units and meets the state's release conditions.
- The state authority grants approval to release unsold Bumi stock.
- A Bumi owner successfully applies to sell their unit to a non-Bumi buyer on the secondary market.

### How to Check If a Property Is a Bumi Lot

Before committing to any property purchase, non-Bumi buyers should verify whether the unit carries a Bumi restriction. Here are several ways to confirm:

- **Title search** -- An official title search at the land office that holds the title will show any restriction endorsed on it. This is the most reliable check once the title is issued.
- **Sale and Purchase Agreement (SPA)** -- The SPA should state whether the unit is a Bumiputera lot. Do not rely on it alone: in the 2023 Rawang case, the SPAs did not show the Bumi status.
- **Developer or agent disclosure** -- Ask the developer or property agent directly. Reputable agents will disclose Bumi status upfront.
- **Offer letter** -- For new launches, the booking form and offer letter will indicate the Bumi or non-Bumi designation of the unit.
- **Written release** -- If the unit was a Bumi unit, ask for the state's written release approval for that unit.

### Price Considerations for Non-Bumi Buyers

Non-Bumi buyers purchasing released Bumi lots should note the following:

- Released Bumi lots in the secondary market are priced at market value, with no discount.
- In some developments, former Bumi lots may be priced slightly below comparable non-Bumi units due to perceived stigma or the administrative history of the unit.
- A released unit can still carry a restriction in interest on the title, so a later sale or charge may again need state consent.
- Non-Bumi buyers should conduct a proper valuation to ensure they are paying a fair price.

## Bumiputera Quota on Commercial Property and Title Issues

The Bumi quota is not limited to homes. State governments also impose Bumiputera allocations on commercial developments such as shop lots, shop-offices, offices and serviced units, often at different rates from housing. Selangor, for example, has been reported to set a 50% quota for commercial units (60% for low-cost commercial), and its discount and release rate for commercial units is 10% against 7% for homes. Kuala Lumpur has been reported at 30% for both residential and commercial, Melaka at 35% to 40% for commercial, and Kedah at 30% for commercial. Because these rates are set by each state and change over time, the residential figures in this guide are not a reliable guide for a commercial purchase. Always ask the developer for the Bumi designation of the specific unit and confirm it against the state's current guidelines.

*Sources: [LPHS e-QUOSEL FAQ](https://kuotalphs.selangor.gov.my/questionAll); [LBS/iProperty, 28 Jun 2022](https://lbs.com.my/lbs-voice/property-guides/bumi-lot-how-to-check-its-status-and-the-reasoning-behind-different-bumi-quota-in-each-state/). Checked 1 October 2026.*

Commercial Bumi lots tend to raise more title issues than residential ones, because they change hands more often, are frequently bought through companies, and are used as loan collateral. These are the problems buyers run into most:

### 1. Bumi Restriction Endorsed on the Title

Once the title is issued, a Bumi lot usually carries a **restriction in interest** (*sekatan kepentingan*) endorsed on the title under the National Land Code. It typically states that the property cannot be transferred, charged or leased to a non-Bumiputera without the State Authority's consent. The restriction stays on the title after the first sale, so it binds every later owner, not just the original buyer. An official title search (*carian rasmi*) is the only way to see the exact wording. In Peninsular Malaysia it is done at the office that holds the title: the state Land and Mines Office (PTG) for registry titles, or the district land office for Land Office titles. Strata titles are searched at the office that holds the master title, and Sabah and Sarawak run their own land registries.

### 2. Title Not Yet Issued

Many commercial units are sold before individual or strata titles are issued. In that case the Bumi status sits in the SPA and the developer's records, and the restriction may only be endorsed when the title is issued later. If you are a non-Bumi buyer of a released unit, insist on a copy of the state's written release approval for that unit and have your lawyer check that the SPA, the release letter and (once issued) the title all match.

### 3. Buying Through a Company

A company buying a commercial Bumi lot must itself qualify as a Bumiputera company. The criteria are set by the state and commonly look at the proportion of Bumiputera shareholding and directors. If the company's shareholding later changes, check whether that affects the status of the property before restructuring.

### 4. Financing and Charging the Property

Because the restriction usually covers charges as well as transfers, putting the property up as loan security may need state consent, and banks will check the Bumi status before approving a loan. Consent timelines (generally at least three months) can delay a refinancing or a sale, so budget for them.

*Source: [Mah Weng Kwai & Associates, Property Transactions Requiring State Consent, updated 20 Jun 2024](https://mahwengkwai.com/property-transactions-requiring-state-consent/). Checked 1 October 2026.*

### 5. Bumi Lot vs Malay Reserve Land

Do not confuse a Bumi lot with **Malay reserve land** (*Tanah Rizab Melayu* or *Tanah Simpanan Melayu*). Malay reserve land is governed by a state Malay Reservation Enactment and can only be owned or dealt with by a "Malay" as that Enactment defines it: broadly a person of a Malayan race who professes Islam and habitually speaks Malay. That is narrower than "Bumiputera", so many non-Malay Bumiputera cannot hold it either. A transfer, lease or charge to a non-Malay is void. Unlike a Bumi lot, it cannot be released through a Bumi release process: removing the reserve status is a separate process governed by Article 89 of the Federal Constitution and the state Enactment, and when land stops being Malay reserve the state must declare replacement land of similar character, of an area not exceeding the land removed. The title will state if land is Malay reserve, so check it in the same title search.

Malay reservation enactments exist in Perak, Selangor, Negeri Sembilan and Pahang (the former Federated Malay States), and in Kedah, Perlis, Kelantan, Johor and Terengganu. Penang and Melaka have none. Sabah and Sarawak have no Malay reserve land, but they have **native land**. In Sabah, the Land Ordinance bars dealings in land between natives and non-natives without the written permission of the Minister. In Sarawak, the Land Code bars non-natives from acquiring Native Area Land and Native Customary Land.

*Sources: [Chia Lee & Associates, Revisiting the Malay Reserve Land Law in Malaysia](https://chialee.com.my/revisiting-the-malay-reserve-land-law-in-malaysia/); [Federal Constitution, Art. 89](https://lom.agc.gov.my/federal-constitution.php); [Sabah Land Ordinance (Cap. 68), s. 17](https://sagc.sabah.gov.my/sites/default/files/law/Land%20Ordinance%20%5BCap.%2068%5D.pdf); [AmCham Malaysia, Sarawak Land Ownership Rights for Non-Sarawakians](https://amcham.com.my/wp-content/uploads/Sarawak-Land-Ownership-Rights-for-Non-Sarawakians.pdf). Checked 1 October 2026.*

### Commercial Bumi Lot Checklist

- Title search showing any restriction in interest, and whether the land is Malay reserve land (or native land in Sabah and Sarawak)
- The Bumi or non-Bumi designation stated in the SPA and booking form
- The state's written release approval, if a non-Bumi is buying a former Bumi unit
- Company eligibility, if buying through a company
- The bank's position on the Bumi status before you pay the deposit

## Bumi Quota and Its Impact on Property Supply

The Bumiputera quota system has significant implications for the overall property market, particularly in terms of supply dynamics and unsold inventory.

### The Unsold Bumi Unit Problem

One of the most persistent challenges in the Malaysian property market is unsold Bumiputera units. This arises when Bumiputera demand in a project does not keep pace with the quota allocation, for example because of price or location. Official overhang statistics from the National Property Information Centre (NAPIC) are not broken down by Bumi status, so the figures below come from the developers' association, Rehda:

| Figure | Source |
|--------|--------|
| Unreleased Bumi lots made up about 40% to 50% of the national overhang | Rehda Malaysia president, Oct 2020 |
| 77% of completed, unsold Bumi units were priced RM300,001 to RM500,000 | Rehda Property Industry Survey, H2 2024 |
| 72% of those unsold Bumi units had been on the market for more than 36 months | Rehda Property Industry Survey, H2 2024 |

*Sources: [The Malaysian Reserve, 1 Oct 2020](https://themalaysianreserve.com/2020/10/01/unreleased-bumi-lots-contribute-half-of-property-overhang/); [Malay Mail, 12 Apr 2025](https://www.malaymail.com/news/malaysia/2025/04/12/rehda-77pc-of-unsold-bumiputera-units-priced-between-rm300000-and-rm500000-high-number-signals-supply-demand-mismatch-in-malaysian-property-market/172794). Checked 1 October 2026.*

### Government Release Mechanisms

To deal with unsold Bumi units, states have set up release mechanisms for developers. They differ in when a developer can apply and how much it pays:

- **Selangor** -- application only after 50% site progress; LPHS collects 7% of the selling price per released residential unit (10% commercial and industrial).
- **Perak** -- six months of advertising by LPHP, then staged releases at 35% and 75% construction, tied to how many non-Bumi units have sold.
- **Johor** -- as reported in 2018, units became eligible for release after nine months or at 50% completion, and the developer paid the state 7.5% (half of the 15% discount).

There is no national automatic release. In 2018 the housing ministry (KPKT) floated a national policy to automatically release completed but unsold Bumi units, but we found no such policy in force. Price-based quotas also exist in places: Johor has been reported to scale its quota by price. In 2018, Rehda Johor's request to drop the quota and discount for homes above RM1 million was opposed, and Johor still applied the 15% discount in 2026.

*Sources: [LPHS e-QUOSEL FAQ](https://kuotalphs.selangor.gov.my/questionAll); [LPHP Perak, Borang LPHP (KB) 1/2026](https://www.lphp.gov.my/index.php/korporat/media/hebahan-integriti-tatakelola/pemaju-perumahan/61-borang-permohonan-penetapan-dan-pelepasan-lot-kuota-bumiputera-bagi-skim-perumahan-perniagaan-industri/file); [EdgeProp, 2 Oct 2018](https://www.edgeprop.my/content/1429663/johor-rehda-do-away-15-bumiputra-discount); [EdgeProp, 8 Oct 2018](https://www.edgeprop.my/content/1431560/kpkt-review-bumiputera-quota-policy-release-mechanism); [Kosmo, 25 Apr 2026](https://www.kosmo.com.my/2026/04/25/20-peratus-lot-bumiputera-tidak-terjual-di-johor-bahru/). Checked 1 October 2026.*

### Market Implications

The Bumi quota system affects the property market in several ways:

- **Supply constraint for non-Bumi buyers** -- In developments with a 30% or higher Bumi quota, non-Bumi buyers are competing for a smaller pool of available units, which can drive up demand and prices for non-Bumi lots.
- **Developer cash flow** -- Unsold Bumi stock ties up developer capital, which can affect project timelines and the launch of new phases.
- **Price distortion** -- The Bumi discount and cross-subsidisation can create slight price differentials between Bumi and non-Bumi units within the same development.

### State-by-State Bumi Quota Requirements

| State | Reported Bumi quota | How firm is the figure |
|-------|---------------------|------------------------|
| Selangor | Residential: set per project under the state housing blueprint; commercial 50% (60% low-cost); industrial 40% (50% low-cost) | Reported in a 2022 guide; residential rate varies |
| Kuala Lumpur | 30% residential and commercial | Reported in 2019 and 2022 guides |
| Johor | 40% | Reported in 2018 and 2019; a 2022 guide says projects after 2004 are scaled by price (40%, 30% or 20%) |
| Penang | 30% | Reported in a 2022 guide; Penang said in 2025 its Bumi quota is unchanged |
| Perak | 30% on state land; 20% on private land | Reported in a 2022 guide |
| Negeri Sembilan | At least 30% | Sources differ (a 2019 guide says 50%) |
| Melaka | Residential 40% to 60%; commercial 35% to 40% | Reported in 2019 and 2022 guides; varies by area |
| Kedah | Residential 30% to 50%; commercial 30% | Reported in a 2022 guide |
| Terengganu | 30% on private land; 50% on surrendered land | Reported in a 2022 guide |
| Pahang | At least 30%, set by the State Exco by location | Reported in a 2022 guide |
| Sabah | 30% in private housing | State policy effective 1 Dec 2024 |
| Sarawak, Kelantan, Perlis | Not confirmed | We could not find a reliable current figure. Much of the land in Kelantan and Perlis is Malay reserve land |

*Sources: [LBS/iProperty, 28 Jun 2022](https://lbs.com.my/lbs-voice/property-guides/bumi-lot-how-to-check-its-status-and-the-reasoning-behind-different-bumi-quota-in-each-state/); [StarProperty, 18 Jul 2019](https://www.starproperty.my/news/property-news/what-you-need-to-know-about-malay-reserve-land-and-bumiputera-land/113715); [EdgeProp, 21 Feb 2019](https://www.edgeprop.my/content/1479801/bumiputera-quota-contributed-property-overhang-johor); [Malay Mail, 7 Jun 2025](https://www.malaymail.com/news/malaysia/2025/06/07/penang-defends-5pc-housing-discount-for-indian-muslims-says-bumiputera-quota-untouched/179572); [Borneo Post, 29 Nov 2024](https://www.theborneopost.com/2024/11/29/sabah-to-enforce-30-pct-bumiputera-housing-quota-policy-starting-dec-1-2024/). Checked 1 October 2026.*

Understanding these quotas helps buyers anticipate the availability of non-Bumi units in any given development and plan their purchase strategy accordingly. Because they are state policies that change, treat the table as a starting point and confirm the quota for the specific project with the developer.

## FAQs About Bumiputera Lots

### Q: What does Bumiputera mean?

"Bumiputera" means "sons of the soil" in Malay. It refers to Malays and the indigenous peoples of Malaysia, including the natives of Sabah and Sarawak and the Orang Asli of Peninsular Malaysia. In property, Bumiputera buyers can buy units reserved under the Bumi quota, usually at a discount on new launches.

### Q: Does the Bumiputera quota apply to commercial property?

Yes. States also impose Bumi quotas on commercial developments such as shop lots and offices, often at different rates from housing. Selangor, for example, has been reported at a 50% commercial quota with a 10% discount and release rate. Each state sets its own quota, discount and coverage, so check the designation of the specific unit with the developer and do a title search for any restriction in interest before buying.

### Q: What is the difference between a Bumi lot and Malay reserve land?

A Bumi lot is a unit reserved for Bumiputera buyers that can be sold to a non-Bumiputera with state consent. Malay reserve land is land that, under a state Malay Reservation Enactment, can only be owned by a Malay as that Enactment defines it. A dealing with a non-Malay is void, and the status cannot be lifted through a Bumi release; removing it is a separate process under Article 89 of the Federal Constitution and the state Enactment. Malay reserve land exists only in Peninsular Malaysia, and not in Penang or Melaka. Sabah and Sarawak instead have native land, with its own restrictions on dealings with non-natives. The land title shows which one applies.

### Q: Can a non-Bumiputera buyer purchase a Bumi lot?

Not directly during a new launch. Bumi lots are reserved exclusively for Bumiputera buyers at the point of sale from the developer. However, non-Bumi buyers can purchase former Bumi lots that have been officially released by the state government. This typically happens when the developer meets the state's release conditions for unsold Bumi units, or when a Bumi owner obtains state consent to sell to a non-Bumi buyer on the secondary market.

### Q: What is the standard Bumiputera discount on property in Malaysia?

There is no single national rate. Each state sets its own, and the rates we could trace run from 5% to 15%. Selangor's is 7% for homes and 10% for commercial units, Johor's is 15%, and Sabah's is 5% plus any discount given to non-Bumi buyers. Kuala Lumpur has been reported at 5% to 7% and Penang at 5%. The discount is applied to the developer's selling price and is only available for new launches, not subsale transactions. Confirm the rate for the specific project with the developer.

### Q: Can a Bumiputera owner sell their property to a non-Bumi buyer?

Usually yes, but only with the state's consent. Where the title carries a Bumi restriction, the owner must apply to the state for a release and for consent to transfer, and the land office will not register the transfer without it. Whether you must first try to find a Bumi buyer, and what release fee is charged, depends on the state. State consent generally takes at least three months. Sabah is an exception: since 1 December 2024, Bumiputera homeowners there may resell without restriction.

### Q: How can I check if a property is a Bumiputera lot before buying?

The most reliable method is an official land title search at the land office that holds the title, which will show any Bumi restriction endorsed on it. You can also review the Sale and Purchase Agreement, which should state the Bumi designation, though SPAs have been known to leave it out. For new launches, the developer's sales team or your property agent should disclose whether a unit is a Bumi or non-Bumi lot. If the unit was released, ask for the state's written release approval. Always confirm the status before signing any booking form or paying a deposit.

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