Establishment, duties and powers of Authority
(1) There shall be established for the purposes of this Act a body, to be known as the Federal Land Development Authority.
(2) The Authority shall have the following duties:
(a) to undertake and carry out land development projects;
(b) to promote and assist in the investigation, formulation and implementation of projects for development, settlement and management of land in the Federation;
(c) to promote, stimulate, facilitate and undertake economic, social, residential, agricultural, industrial and commercial development and management and other ancillary activities and services in any area for which the Authority has been vested with the power to carry out land development projects or any other area which has been acquired, purchased, leased by or alienated to or is otherwise held or enjoyed by the Authority or its corporations or companies for the performance of its functions;
(d) to undertake and carry out such activities as may assist in the modernization of the agricultural sector in the area mentioned under paragraph (c); and in particular activities relating to the production, utilization, processing and marketing of crops, livestock and fresh water fisheries;
(e) to assist, guide, advise, manage, administer and coordinate economic, social, residential, agricultural, industrial and commercial activities whether within or outside the area mentioned under paragraph (c).
(3) The Authority shall have power, for the purpose of the discharge of its duties under subsection (2)—
(a) to carry on all activities the carrying on whereof appears to it to be requisite, advantageous or convenient for or in connection with the discharge of its said duties including the provision of infrastructure and social amenities and other ancillary services;
(b) to promote and co-ordinate the carrying on of any such activities by boards, corporations, companies and other bodies or persons and to give assistance to such boards, corporations, companies and other bodies or persons including financial assistance, by way of grant, loan or otherwise;
(c) with the approval of the Minister to enter into a partnership, joint venture, undertaking, co-operation in any manner, an arrangement for the sharing of profits or to carry on such activities in association or otherwise, with any person, public authority, corporation, company or other body (including the Government of the Federation or any State Government) carrying on or engaging in any such activities and to take or otherwise acquire shares and securities of any such public authority, corporation, company or other body, and to sell, hold on, reissue with or without guarantee, such shares and securities or otherwise dispose of or deal with them;
(ca) with the approval of the Minister, to establish or promote the establishment of companies to carry on or engage in any activity which has been planned or undertaken by the Authority (including the taking over of the function of a corporation which has been wound up and dissolved under section 43);
(d) to make loans, subject to such conditions as the Authority may think fit, in accordance with this Act;
(e) to do anything and to enter into any transaction (whether or not involving expenditure, borrowing in accordance with this Act in that behalf, granting of loans or investment of money, the acquisition, use and disposal of any movable or immovable property, including rights) which in its opinion is calculated to facilitate the proper discharge of its functions or is incidental or conducive thereto.
(4) The Authority shall not promote, carry out, assist or participate in any such project or activity as is referred to in this section in the State of Sarawak, until the concurrence of the Yang di-Pertua Negeri has first been obtained, and in any other State, until such measures for consultation with the Government of such State or with any Department of the Federal Government as appear to the Minister to be appropriate have been taken.
(5) The Authority may, with the approval of the Minister—
(a) establish, maintain and administer or continue to maintain and administer and subsequently wind up, such funds into which shall be paid sums contributed by the persons participating in the land development and settlement projects carried out by the Authority, sums donated by any person or body and such other sums as may be determined by the Authority; and
(b) utilize the funds mentioned under paragraph (a) for the purpose which the Authority may consider necessary for the welfare and benefit of the persons, and the dependants of the persons, participating in the land development and settlement projects carried out by the Authority.
Powers of the Minister in relation to the Authority
(1) The Minister may, after consultation with the Authority, give to the Authority directions of a general character and not inconsistent with this Act as to the exercise and performance of its duties and functions in relation to matters which appear to him to affect the interests of Malaysia and the Authority shall give effect to all such directions.
(2) The Authority shall furnish the Minister with such returns, accounts and other information with respect to its property and activities as he may from time to time require.
Disposal of capital assets
The power conferred on the Minister by section 4 to give directions to the Authority shall extend to the giving of directions—
(a) as to the disposal of capital assets; or
(b) as to the application of the proceeds of such disposal,
notwithstanding that the directions may be of a specific character:
Provided that no such direction shall, so long as any sum borrowed by the Authority in accordance with this Act remains outstanding, be given except with the concurrence of the Treasury.
Additional functions of the Authority
In addition to the duties imposed by this Act, the Authority may undertake such other functions and administer and expend such other moneys for such purposes as the Federal Government or any
State Government may assign to the Authority and in so doing the Authority shall be deemed to be fulfilling the purposes of this Act and the provisions of this Act shall apply to the Authority in respect of such functions and the administration and expending of such moneys:
Provided always that the accounts of such moneys shall be kept separate and apart from those of the Fund and of every board.
The Land Development Fund
Establishment of Land Development Fund
(1) All advances, whether by way of grant, loan or otherwise, made under this Part, shall be made out of a fund, to be called the Land Development Fund, to be administered and controlled by the Authority into which shall be paid—
(a) such capital sums as may be provided from time to time for the purposes of the Authority by the Dewan Rakyat;
(b) such capital sums as may be allocated from time to time to the Authority from loan funds;
(c) sums borrowed by the Authority for the purpose of meeting any of its obligations or discharging any of its duties;
(d) any property, investments, mortgages, charges or debentures acquired by or vested in the Authority; and
(e) all other capital assets which may in any manner become payable to or vested in the Authority in respect of any matter incidental to its powers and duties.
(2) The charges on any amount which may be allocated to the Authority from loan funds shall be met by the Authority:
Provided that all or any part of such charges may be met from the general revenues of Malaysia with the approval by resolution of the Dewan Rakyat.
(3) In this section the expression “loan funds” means such sums as may be made available from time to time to the Government by way of loan.
Financial Provisions
Duty to conserve Fund
It shall be the duty of the Authority to conserve the Fund by so exercising and performing its functions and duties under this Act as to secure that the total revenues of the Authority are, subject to any directions given by the Minister under section 4, and taking one year with another, sufficient to meet all sums properly chargeable thereto including provisions in respect of—
(a) its obligations under subsection 7(2) and section 9; and
(b) depreciation and interest on capital:
Provided that the Minister may, with the concurrence of the Treasury direct that such expenditure or class or description of expenditure as may be specified in such direction shall be treated as irrecoverable.
Reserve fund
(1) The Authority shall establish a reserve fund.
(2) The management of the reserve fund, the sums to be paid from time to time to the credit thereof and the application thereof shall be as the Authority may determine:
Provided that no part of the reserve fund shall be applied otherwise than for the purposes of the Authority.
Powers of expenditure
The Authority may from the fund and its other resources—
(a) pay any expenses lawfully incurred by the Authority, including survey, legal and other fees and costs, and the remuneration of agents, technical advisers, officers or servants appointed or employed by the Authority, including travelling expenses, subsistence allowances and contributions to any provident fund established by the Authority under this Act;
(b) pay any other expenses, costs or expenditure properly incurred or accepted by the Authority in the execution of its duty or in the discharge of its functions under this Act;
(c) purchase or hire plant, equipment, machinery, stores and any other materials and pay the cost of the acquisition of any land and the erection of any buildings and the carrying out of any works and undertakings in the execution of its duty or in the discharge of its functions under this Act;
(d) repay any moneys borrowed under this Act and the interest due thereon or set apart any sum required to be transferred to a sinking fund for the purpose of making provision for the repayment of such moneys and the interest thereon.
Gifts
The Authority may accept any gifts made to the Authority for all or any of the purposes specified in subsections 3(2) and (3) and, subject to the terms of any gift, apply them for those purposes in accordance with this Act.
Borrowing powers
The Authority may from time to time borrow, at such rate of interest and for such period and upon such terms as to the time and method of repayment and otherwise as the Minister may approve, any sums required by the Authority for meeting any of its obligations or discharging any of its duties:
Provided that no such sum borrowed as aforesaid shall, save by leave of the Minister, be used to repay moneys borrowed or to pay interest on moneys borrowed.
Power to issue stock, etc.
12 A. (1) The Authority may, from time to time, with the approval of the Minister, borrow money by the issue of bonds, debentures or debenture stock, or raise capital by the issue of shares or stock of such class and value and upon such terms as it may deem expedient, for all or any of the following purposes:
(a) the provision of working capital;
(b) the fulfilling of the duties of the Authority under this Act;
(c) the fulfilling of such additional functions as may be undertaken by the Authority under this Act;
(d) the redemption of any shares or stock which it is required or entitled to redeem;
(e) any other expenditure properly chargeable to capital account.
(2) The Authority may make rules not inconsistent with this Act to provide for such matters in connection with shares, stock, bonds, debentures or debenture stock issued under this Act as may appear necessary or expedient to the Authority, and, in particular, for regulating the method of issue, transfer, redemption, or other dealing with such shares, stock, bonds, debentures or debenture stock.
Bank guarantee
12B . The Authority or its corporation established under section 42 may, in the normal course of performing its duties, issue one or more bank guarantees to any person for such purpose and to such extent as the Authority may, with the approval of the Minister, determine.
Investments
The fund and the reserve fund, without prejudice to section 3, and any sinking fund, may be invested in any of the investments authorized by the Trustee Act 1949 [Act 208], for the investment of trust funds, or in such other manner as the Minister may from time to time approve.
Accounts and Audit
Accounts and audit
(1) The Authority shall keep or shall cause to be kept proper accounts and other records in respect of its operations and of all corporations established by the Authority, and shall cause to be prepared statements of account in respect of each financial year.
(2) The accounts of the Authority and of each such corporation shall be audited by auditors to be appointed annually by the Authority.
(3) After the end of each financial year, as soon as the accounts of the Authority and of each such corporation shall have been audited, the Authority shall cause copies of the statements of account to be transmitted
to the Ministers, together with a copy of any report or observations made by the auditors on any statement or on the accounts made by the auditors on any statement or on the accounts of the Authority or of any such corporation.
(4) A copy of every such statement and report or observations shall be laid before the Dewan Rakyat.
Incorporation, Constitution and Procedure
Constitution of Authority
(1) The Authority shall be by virtue of this Act a body corporate to be known as the Federal Land Development Authority, and shall have perpetual succession and may sue and be sued in its said name and may do all other matters and things incidental or appertaining to a body corporate and not inconsistent with this Act.
(2) The Authority shall consist of—
(a) a Chairman, who shall be appointed by the Minister and shall hold office during his pleasure; and
(b) not more than twelve or less than six members, who shall be appointed by the Minister and shall, subject to this Act, hold office for such term not exceeding three years and subject to such conditions as the Minister shall determine.
(3) If the Chairman is unable to exercise his functions under this Act owing to illness, absence from Malaysia or for any other cause whatsoever, the Minister may appoint a person, whether a member of the Authority or not, to be a temporary Chairman, who shall perform all the duties and exercise all the powers which under this Act are exercisable by the Chairman.
(4) The Minister may appoint any person to be a temporary member of the Authority during the temporary incapacity through illness or during the temporary absence from Malaysia of any member.
(5) Any person ceasing to be a member of the Authority shall be eligible for re-appointment.
(6) The Minister may at any time accept the resignation of any member of the Authority.
(7) The Minister may at any time revoke the appointment of any member of the Authority, if he thinks it expedient so to do, without assigning any reason therefor.
Common seal
(1) The Authority shall have a common seal, which shall bear such device as the Authority may approve and such seal may from time to time be broken, changed, altered and made anew by the Authority, as the Authority may think fit.
(2) Until a seal is provided by the Authority under this section a stamp bearing the inscription “Federal Land Development Authority” may be used as the common seal.
(3) The common seal, or the stamp referred to in subsection (2) so long as it is used as the common seal, shall be in the custody of the Chairman and all deeds, documents and other instruments requiring the seal of the Authority shall be sealed with the seal or stamp of the Authority in the presence of the Chairman and of a member or an officer of the Authority authorized by the Authority to act in that behalf, who shall sign every such deed, document or other instrument to which such seal or stamp is affixed and such signing shall be sufficient evidence that such seal or stamp was duly and properly affixed and that the same is or is used as the lawful seal of the Authority.
(4) The seal or stamp of the Authority shall be officially and judicially noticed.
(5) (Deleted by L.N. 477 of 1965).
Salaries and fees payable to members of Authority
There shall be paid to members of the Authority such salaries, fees and allowances for expenses as the Minister may from time to time determine.
Committees
(1) The Authority may appoint committees for any purposes arising out of or connected with any of its duties, functions and powers under this Act.
(2) Any committee appointed under this section may appoint one or more sub-committees.
(3) Any committee or sub-committee so appointed shall conform to any instructions from time to time given to it by the Authority or the committee by which it was appointed, and the Authority or such committee may at any time discontinue or alter the constitution of any committee or sub-committee so appointed.
Members not to vote on matters in which they are interested
(1) A member shall not at any meeting of the Authority, or of a committee thereof, take part in any discussion of, or vote in respect of, any contract or arrangement proposed to be entered into by the Authority in which he or any company of which he is a director or manager or any firm in which he is a partner has directly or indirectly any interest.
(2) A member shall not be deemed to have a share or interest in any such contract or arrangement by reason only of his being a shareholder in a company with which it is proposed that the Authority should enter into such contract or arrangement unless he has a controlling interest in such company.
Quorum and proceedings of Authority
The quorum at all meetings of the Authority shall be four and, subject to this Act, the Authority may make standing orders regulating its own procedure generally, and the procedure of any committee appointed in accordance with section 18 and, in particular, regarding the holding of meetings, the notice to be given of such meetings, the proceedings thereat, the keeping of minutes, the custody, production and inspection of such minutes, and the opening, keeping, closing and audit of accounts.
Officers and Servants
Powers and duties of Chairman
(1) The Chairman shall exercise supervision and control over the acts and proceedings of all officers and servants of the Authority in matters of executive administration, and in matters concerning the accounts and records of the Authority and subject to any
regulations made under section 24 or 29, dispose of all questions relating to the service of such officers and servants and their pay, privileges and allowances.
(2) The Chairman may, subject to such conditions and restrictions as he may consider necessary, delegate the exercise of all or any of the powers or the performance of all or any of the duties conferred on him by or under this Act to the General Manager appointed under section 22:
Provided that no such delegation shall affect the exercise of any such power or the performance of any such duty by the Chairman.
Appointment of a General Manager, officers and servants
The Authority may from time to time appoint and employ a General Manager and such officers and servants as may be necessary, in the opinion of the Authority, for the purpose of this Act.
Power to appoint and dismiss officers and servants
(1) Subject to any regulations made under section 24 or 29, the power of appointing, promoting, suspending, dismissing, fining, reducing or granting leave to the officers and servants of the Authority shall be exercised by the Chairman:
Provided that in the case of officers and servants whose monthly salary exceeds five hundred ringgit such powers, with the exception of the power of suspension, shall not be exercised without the previous approval of the Authority.
(2) The power of dispensing with the services of any officer or servant of the Authority for any reason other than the misconduct of such officer or servant, or of permitting any such officer or servant to retire on a gratuity or compassionate allowance shall, subject to the aforesaid provisions, be exercised by the Authority alone.
(3) Any officer or servant aggrieved by any decision of the Chairman in the exercise of his powers under subsection (1) may appeal to the Authority.
Authority to frame regulations governing conditions of service
(1) The Authority may from time to time in its discretion frame regulations governing the conditions of service of its officers and servants.
(2) Without prejudice to the generality of the foregoing provisions of this section such regulations may provide for—
(a) regulating the amount of the salaries, fees and allowances payable to the officers and servants of the Authority;
(b) regulating the grant of leave to such officers and servants;
(c) authorizing the payment of all allowances to such officers and servants while absent on leave;
(d) determining the remuneration to be paid to the persons appointed to act for any such officers or servants during their absence on leave;
(e) regulating the period of service of all such officers and servants; and
(f) determining the conditions under which gratuities or compassionate allowances may be paid to such officers and servants injured or to the surviving relatives of any of such officers or servants, killed in the execution of their duty.
(3) Any regulations made under this section shall not come into operation until they have been submitted to and approved by the Minister.
Provident fund, pensions and superannuation schemes
(1) With the approval of the Minister the Authority may—
(a) establish, maintain, administer or continue to maintain and administer and subsequently wind-up a provident fund for the benefit of its officers and servants or any section of such officers and servants and make regulations in respect thereof;
(b) enter into arrangements or agreements with any local land development board or corporation for the establishment, maintenance and administration and subsequent windingup of a joint provident fund for the benefit of such officers
and servants and of the officers and servants or a section of the officers and servants of such board or corporation and subject to any such arrangement or agreement, make regulations in respect thereof;
(c) establish, maintain and administer a pension scheme for payments of pensions, gratuities or other allowances on superannuation, resignation, retirement or discharge of officers and servants of the Authority or any section of such officers and servants and for the establishment and maintenance of a pension fund and make regulations in respect thereof; and
(d) establish and administer a superannuation scheme for the granting of such gratuities and allowances on death, superannuation, resignation, retirement or discharge of subordinate officers and servants of the Authority as may be deemed expedient and for the granting of such gratuities and allowances as may be deemed expedient to any one or more of the surviving dependants of any person who having been employed as a subordinate officer or servant of the Authority dies after having been superannuated or discharged or after having resigned or retired may make regulations in respect thereof.
(2) No gratuity, allowance or other payment payable out of any such provident fund or under any such pension or superannuation scheme nor any right or interest acquired by any person there under shall be assignable or transferable or liable to be attached, sequestrated or levied upon for or in respect of any debt or claim whatsoever other than a debt due to the Authority.
(3) Any moneys paid out of any such provident fund on the death of any person shall be deemed to be impressed with a trust in favour of the persons entitled thereto under the will or intestacy of such deceased person, but shall not be deemed to form part of his estate or be subject to his debts.
(4) Any person may by will or by a memorandum under his hand appoint a trustee or trustees of the moneys payable on his death out of any such provident fund and may make provision for the appointment of a new trustee or new trustees of such moneys and for the investment thereof.
(5) If at the time of the death of any person or at any time afterwards there is no trustee of such moneys or it is expedient to appoint a new trustee or new trustees, then and in any such case a trustee or trustees or a new trustee or new trustees may be appointed by the High Court or a Judge thereof.
(6) The receipt of a trustee or trustees duly appointed, or in default of any such appointment and of written notice thereof to the Authority the receipt of the legal personal representative of a deceased person, shall be a discharge to the Authority for any moneys payable on his or her death out any such provident fund.
(7) Any officer or servant of the Authority who is a contributor to any such provident fund shall, if he is dismissed the service of the Authority for fraud or dishonesty or misconduct, which involves pecuniary loss to the Authority, or retires from or resigns his office with intent to escape discharge or dismissal in consequence of such fraud, dishonesty or misconduct, forfeit, at the absolute discretion of the Authority, all or any part of his contribution to the fund and the interest accrued thereon and the accumulations thereof as the Authority in its discretion thinks fit.
(8) Any employee of the Authority who would otherwise be entitled to any benefit under any such pension scheme shall, if he is dismissed from the service of the Authority for fraud or dishonesty or misconduct, which involves pecuniary loss to the Authority, or retires from or resigns his office with intent to escape discharge or dismissal in consequence of such fraud, dishonesty or misconduct, forfeit and lose the whole or such part of such benefit as the Authority may in its absolute discretion direct.
(9) With the approval of the Minister the Authority may, in its discretion, in consideration of long or special services of any officer or servant of the Authority whose case does not come within the scope and effect of the Authority’s provident fund, pension scheme or superannuation scheme regulations, pay to such officer or servant, on his retirement or discharge, or to any surviving dependants of such officer or servant, upon his death, a gratuity or compassionate allowance on such terms and conditions as the Authority may determine.
(10) Any regulations made under paragraph (1)(b) may, notwithstanding anything contained in the Interpretation Acts 1948 and 1967 [Act 388], be made to operate retrospectively to any date whether before or after the coming into force of this Act.
Contracts and Delegation
Contracts and execution of documents, etc.
The Minister may make regulations with respect to the execution of documents, cheques and instruments of any description and the mode of entering into contracts by and on behalf of the Authority, and the proof of documents purporting to be executed, issued or signed by the Authority or a member or officer thereof.
Delegation
(1) Without prejudice to section 26 and any regulations made thereunder, the Authority may delegate to any member of the Authority or to any committee appointed under section 18 the power and authority to carry out on its behalf such duties, powers or functions as the Authority may determine.
(2) The Authority may at the time of delegating any power or authority under subsection (1) to any member or committee or at any time thereafter give directions as to the manner in which such delegated power or authority is to be exercised and may at any time revoke, modify or increase such delegation.
Annual Report
Annual report
(1) The Authority shall, as soon as practicable after the end of each financial year, cause to be made and transmitted to the Minister a report dealing generally with the activities of the Authority, including all corporations established by the Authority, during the preceding financial year and containing such information relating to the proceedings and policy of the Authority as the Minister may from time to time direct.
(2) A copy of every such report shall be laid before the Dewan Rakyat.
Regulations
Regulations
The Authority may, with the approval of the Minister, make regulations not inconsistent with this Act—
(a) defining the relations of the Authority with boards or corporations;
(b) prescribing the system of management of the Authority and the responsibilities and control of officers and servants of the Authority;
(c) imposing fees in such cases as may be determined by the Authority;
(d) regulating the opening, keeping, closing and audit of accounts of boards and corporations;
(e) generally for the exercise of their powers and duties under this Act.
Source: Laws of Malaysia, Attorney General's Chambers of Malaysia (lom.agc.gov.my). Not a copy of the Gazette printed by the Government Printer (Interpretation Acts 1948 and 1967, s 61).
