We often take it for granted: a roof over our heads, walls that keep out the heat and rain, and a place to return to after a long day. But not everyone in Malaysia is so fortunate.
Despite being one of the most urbanised countries in East Asia, thousands of Malaysians still live without proper housing[1]. Nestled in the shadows of condominiums and townships are makeshift shelters assembled from scrap wood, zinc sheets, and tarpaulin. These are home to families who live on land they do not own.
These are the invisible communities living on the margins, labelled as squatters. And their stories are rarely heard.
The People Behind The Term ‘Squatter’
The term ‘squatter’ often carries a negative label, but behind it are real people, often left with no other choice, trying to survive with whatever means they have. According to Collins Dictionary, a squatter is someone who lives in an unused building or occupies land without legal permission, rent, or payment of property taxes – often because they have no other housing alternative[2].
From a legal standpoint, the law firm MahWengKwai & Associates defines squatters as those living on a piece of land without legal rights and agreements, such as a licence, tenancy, or lease, without the rightful owner[3].
Based on these definitions, it’s easy to assume that squatters are lawbreakers acting intentionally, avoiding rent and taxes. But what’s often overlooked is the deeper issue: most squatters are extremely poor people who cannot afford to live the ‘right’ or officially sanctioned way prescribed by the government, housing policies and national development plans.
Victims or Offenders? How Squatting Began
According to a 2017 journal, squatting in Malaysia mainly began because of people moving quickly from rural areas to cities, especially starting in the 1960s. Before the 1970s, most Malays lived in villages, while other groups like the Chinese and Indians were mostly in towns or plantations.
The government encouraged more Malays to move to the cities through a plan called the New Economic Policy (NEP), launched in 1971. The goal was to create more balanced opportunities for different ethnic groups[4].
This sudden movement to cities created a huge demand for affordable housing. But the government couldn’t build enough homes fast enough. Because of this, many low-income people ended up living illegally, settling on public or private land without permission, often in informal settlements without basic facilities.
To address this, the government introduced several policies over the years:
>> In the 1970s, the Low-Cost Housing Program focused on building affordable flats and terrace houses for the urban poor. Still, it wasn’t enough to meet the growing demand.
>> During the 1980s, the Urban Resettlement Programs tried to move squatters out of city centres and into government-built housing on the outskirts. But many of these new areas were far from jobs and lacked proper infrastructure.
>> In 1990, the Squatter Rehabilitation Scheme aimed to legalise and improve existing squatter settlements by providing basic utilities and land titles, helping to bring these communities into formal city planning.
>> Then in 2000, the National Housing Policy encouraged partnerships between the government and the private sector to speed up affordable housing development. However, rising land prices and rapid urban growth made it hard to keep up[4].
Even with all these efforts, squatting is still a big problem, especially in big cities like Kuala Lumpur, Johor Bahru, and Penang. Many squatters still struggle to find affordable and legal housing because of financial and bureaucratic barriers[4].
Life On The Margins: A Daily Battle
If you own any unused property — whether it’s a house or a building — one of your biggest fears is likely the possibility of strangers residing there without your knowledge or consent. What’s more alarming is that they may be living there rent-free.
It’s a legitimate concern.
Unoccupied properties that get taken over by squatters often fall into disrepair. Since those living there usually can’t afford upkeep, the building quickly deteriorates, with leaking roofs, broken windows, and faulty wiring. Over time, this neglect not only damages the structure but also drags down its market value, making it harder to sell or restore.
There’s also another risk: abandoned properties can become hotspots for illegal activity such as drug use, vandalism, and even theft. With no security and no one watching, these spaces become vulnerable. Families living nearby, especially those with young children, are often the first to raise safety concerns[5].
One such case was reported by AsiaOne in 2023. A homeowner in Selangor, who had left his property vacant for over 10 years, was shocked to discover that several foreigners had been living in it for months. It only came to light when a property agent visited to arrange its sale. The squatters were eventually arrested by police and immigration authorities for trespassing[6].
While squatting poses real concerns for property owners, it also reveals a far deeper, more painful reality – the daily hardships faced by those who squat.
A 2023 journal study of urban squatters in Sentul, Kuala Lumpur, exposed the multi-layered challenges they endure: social instability, poor housing conditions, environmental hazards, and chronic financial stress — all of which have a direct impact on their safety, relationships, and well-being[7].
One squatter shared how theft and burglary in their area are impossible to control. Isolated and largely invisible to the public, their settlement is left unprotected, fueling constant anxiety. Many social issues, they said, stem from restless local teens caught up in unhealthy behaviours like drug abuse and illegal racing.
Even their shelters are barely holding up. Homes built from whatever materials they could find are often structurally unsound.
The house roof often leaks. However, I only get to repair the damages by using low-quality material, as it is the only material I can afford. Because I’m using a low-quality material to repair the house roof, it will leak again after a few months of repair. – Participant 4: Muhammad
Overcrowding adds to the strain. In these crammed settlements, children struggle to find space or quiet to concentrate on schoolwork. The noise, lack of privacy, and physical discomfort make learning at home a daily uphill climb.
Behind all of this is the unrelenting pressure of poverty. For many, it’s the root cause, the reason they end up in informal settlements in the first place.
Of course, I want to move out of this place, but we can’t afford a proper house because I need to spend money on my children’s school and daily needs. I’m a pregnant mom now who needs to use money to raise my children. – Participant 2: Salmah[7]
For these families, squatting isn’t a rebellious act; it’s a last resort for survival.
What The Law Says
Despite the difficult and often unavoidable circumstances squatters may face, Malaysian law remains strict and generally unsupportive of squatting.
According to the law firm Thomas Philip: Advocates & Solicitors, the National Land Code 1965 (NLC) is one of the key legal references when it comes to land rights[8].
Section 48 of the NLC states: No title to State land shall be acquired by possession, unlawful occupation or occupation under any licence for any period whatsoever.
This means that even if someone has been living on government-owned land for many years without permission, it still does not give them any legal right to own it. The only way to get legal ownership of State land is by formally applying for it through the proper legal process under the NLC.
Additionally, Section 341 of the NLC explains: Adverse possession of land for any length of time shall not constitute a bar to the bringing of any action for the recovery by the proprietor or any person or body entitled to an interest therein.
In simpler terms, this means that no matter how long someone has been occupying a piece of land without legal rights, the original or legal owner still has the full right to take back the land through legal action[8].
Trapped in the Cycle: Affordability, System Failures, and the Misunderstood ‘Squatter’
Tan Jo Hann, a seasoned community organiser and human rights advocate with KOMAS, has spent decades working alongside Malaysia’s marginalised urban poor, particularly those facing eviction and housing insecurity.
As the former president of PERMAS, the main grassroots force tackling this issue, with advocacy from KOMAS, Tan breaks down the housing crisis into three interconnected problems: affordability, systemic failure, and the damaging misconceptions surrounding the word “squatter.”
1. Affordability – The Bank Loan Barrier
For many low-income families, the issue isn’t just finding a home – it’s owning one. Even with government housing schemes like Program Perumahan Rakyat (PPR) offering units for as low as RM45,000, most B40 families can’t secure the bank loans needed to buy them.
Why? Banks deem these buyers too risky, especially the elderly, gig workers, or those without a fixed income. So while the price may look affordable on paper, access remains out of reach. Without financing, families are trapped in a cycle of renting, subletting, or squatting, with no way to gain long-term housing security.
2. System Failures – Government, Developers, and Legal Loopholes
According to Tan, the system itself is riddled with cracks. Housing-related responsibilities are scattered across multiple bodies – state governments, local councils, federal ministries, often working in silos. This fragmentation leaves residents confused and unsupported.
In some cases, authorities tasked with protecting citizens appear to side with developers instead. The Land Acquisition Act, originally meant to serve the public good, is sometimes wielded to evict long-time residents in favour of commercial developments like malls and condominiums.
Schemes such as Rumah Panjang and PPR, intended to assist resettlement, were often mismanaged or underfunded. There were allegations of inflated construction costs, raising questions about corruption or wastage. Even popular ideas like “rent-to-own” only gained traction after years of advocacy and pressure from civil society groups.
3. The Misunderstood ‘Squatter’ – Whose Fault Is It?
The term “squatter” is often used carelessly and unfairly. In communities like Kampung Chubadak or Kerinchi, many families had lived there for generations, some even owning their homes. But when the state reclaimed the land for development, they were reclassified as illegal occupants.
Often, residents only seek legal help when eviction is already underway; by then, some may have unknowingly signed unfair compensation agreements. Meanwhile, political parties may offer promises of help but quietly support developers behind closed doors. With few trustworthy allies, many residents turn to advocacy groups like KOMAS for help.
To complicate matters further, some families give up and leave, only to return when negotiations start. This creates confusion over who’s entitled to compensation or replacement housing, making it harder for communities to present a united front.
It’s Not Just About Building More Homes
Tan’s insights reveal that Malaysia’s housing crisis isn’t simply about supply. It’s a deeper, more complex cycle shaped by financial exclusion, fragmented systems, and harmful labels that strip people of dignity and opportunity.
Until these root issues are addressed, building more homes won’t be enough. What’s needed is a system that prioritises fairness, access, and humanity – one that recognises every Malaysian’s right to a secure home, and to be seen.
Because behind every “squatter” is a story and a citizen who deserves better.
Written by Noor Ainun Jariah Noor Harun
Explore our sources:
- A. O’Neill. (2025). Malaysia: Urbanization from 2013 to 2023. Statista. Link
- Collins English Dictionary. (n.d.). Squatter definition and meaning. Link
- R.Mah, J.Khor & O. J. Jun. (2023). Eviction of Squatters in Malaysia: Your Rights as a Landowner. MahWengKwai & Associates- Advocates and Solicitors. Link
- Y. A. Abdullah, J. N. Kuek, H. Hamdan, & F. L. M. Zulkifli. (2017). Combating squatters in Malaysia: do we have adequate policies as instrument?. Planning Malaysia: Journal Of The Malaysian Institute Of Planners Volume 15 Issue 2 Page 25 – 36. Link
- Global Guardians. (n.d.). The Effects of Squatting on Vacant Buildings. Global Guardians Management Ltd. Link
- C. Tan. (2024). Homeowner leaves house in Malaysia vacant, later finds migrant workers squatting there for months. AsiaOne. Link
- M. A.Yaacob & N. Z. A. P. Hassan. (2023). Exploring the Challenges Faced by the Urban Squatter Dwellers in Sentul, Kuala Lumpur, Malaysia. Journal of Population and Social Studies. 32. 14-35. 10.25133/JPSSv322024.002. Link
- P. R. Kumar. (2021). Honey, There’s A Squatter on Our Land! Squatters Rights in Malaysia & the Legal Remedies for Landowners. Thomas Philip Advocates & Solicitors. Link
