Sime Darby Property unit ordered to refund RM36.23m land compensation
The High Court has ordered Sime Darby Property Bhd’s unit SDP Klang Sdn Bhd to refund RM36.23 million to the Malaysian Highway Authority within three months for overpaying land acquisition compensation.
Source: EdgeProp · July 21, 2026 at 6:58 PM · AI-assisted report
Corroborated
KUALA LUMPUR, 22 JULY 2026 —
Sime Darby Property unit ordered to refund RM36.23m land compensation
Market Impact
KUALA LUMPUR (July 21): The High Court has ordered Sime Darby Property Bhd’s subsidiary, SDP Klang Sdn Bhd, to refund RM36.23 million to the Malaysian Highway Authority (LLM) within three months for overpaying land acquisition compensation related to the West Coast Expressway project.
In a Bursa Malaysia filing, Sime Darby Property said the court ruled on consequential matters from an earlier land reference case, directing SDP Klang to repay RM36,234,459.45, representing excess compensation for seven plots of land in Bukit Raja, Klang, Selangor. The court also imposed a 5% annual interest on the judgment sum from July 20 until full payment is made.
No costs were awarded, while LLM will bear assessors’ fees of RM1,500 each for the government and private assessors.
The developer noted that the High Court’s full written grounds of judgment were not yet issued as of the filing date. It added that the pre-tax financial impact would be limited to the RM36.23 million judgment sum and applicable interest, with no material operational impact expected on the group.
Sime Darby Property said it is evaluating the decision and considering all available legal options, adding that further announcements would be made if significant developments arise in the land reference matter.
The case stems from a prior court decision that overturned a RM78.6 million compensation awarded to SDP Klang for the land acquisition. The latest ruling follows the High Court’s determination of consequential issues arising from that decision.
For Malaysia’s property sector, the ruling highlights the financial risks of land acquisition disputes, particularly in infrastructure projects where compensation assessments can be contentious. Sime Darby Property, a major player in the industry, has emphasized that the judgment’s impact is confined to the financial adjustment, with no disruption to operations anticipated.
The West Coast Expressway, a key infrastructure project linking key economic zones in Peninsular Malaysia, has faced multiple legal challenges related to land compensation. The latest ruling underscores the importance of precise valuation in compulsory acquisitions to avoid costly disputes.
Analysts suggest that while the RM36.23 million refund is significant, it is unlikely to materially affect Sime Darby Property’s overall financial position. The company’s focus remains on resolving the land reference matter while maintaining its development pipeline.
The High Court’s decision serves as a reminder for developers and authorities to ensure transparency and accuracy in land acquisition processes to mitigate future legal and financial risks. Further updates are expected as the company reviews its legal recourse.
Related: Sime Darby