Regulating Land Ownership for Water Assets in Malaysia: Structural Weaknesses and Policy Reforms Informed by Global Models

The restructuring of Malaysia’s water supply industry has exposed a critical misalignment between private land ownership and the management of treated water assets, particularly when existing infrastructure such as pipeline networks is situated on privately owned land without formal ownership rights. This study examines the weaknesses in Malaysia’s regulatory framework for land ownership pertaining to water supply assets, which arose from water industry restructuring and privatisation policies lacking clear mechanisms to manage treated assets on private land. Using comparative policy review analysis of 50 court cases (2015–2023), policy documents (Water Services Industry Act 2006, National Land Code 1965), and comparisons with international models (Singapore, Australia, France), the study reveals three critical weaknesses: (i) ambiguity in the definition of “treated assets” under Section 2 of Act 655, (ii) inadequate compensation mechanisms under Section 54 of Act 655, and (iii) jurisdictional overlaps between PAAB (Pengurusan Aset Air Berhad), SPAN (National Water Services Commission), and state governments. The findings that the regulatory misalignment has led to prolonged litigation, hindered infrastructure maintenance, and perpetuated ownership ambiguities. As a solution, the study proposes an integrated reform framework comprising: (1) amendments to Act 655 to introduce statutory utility easements, (2) the establishment of centralized utility corridors with an integrated asset registration system, and (3) the creation of a specialized tribunal for water-related disputes. The study’s primary contribution lies in integrating perspectives from land law, public asset management, and utility policy, while proposing a contextual model for Malaysia that could mitigate conflicts, enhance industry efficiency, and strengthen sustainable land governance.