Court orders Sime Darby Property to repay RM36.23m after overpayment ruling
The Shah Alam High Court ordered Sime Darby Property Bhd to refund RM36.23 million plus 5% annual interest to the Malaysian Highway Authority (LLM) after finding the company had received excess compensation for seven…
Source: The Edge Malaysia · NST Online · EdgeProp · July 21, 2026 at 6:22 PM · AI-assisted report
CorroboratedKUALA LUMPUR, 22 JULY 2026 —
Shah Alam High Court orders Sime Darby Property to repay RM36.23 m to LLM
Market Impact
The Shah Alam High Court on 13 July ruled that Sime Darby Property Bhd (KL: SIMEPROP) must return RM36.23 million, plus 5 % annual interest, to the Malaysian Highway Authority (LLM). The decision follows a long‑running dispute over compensation for seven land plots compulsorily acquired in 2015 for the West Coast Expressway project.
The court found that Sime Darby Property had been over‑compensated by RM78.6 million, which was awarded as severance and injurious affection. The company had originally received RM169.3 million in total – RM90.7 million for land value and RM78.6 million for the additional compensation. LLM challenged the extra payment, and after a rehearing earlier this year the High Court sided with the authority. On 20 July the court set the repayment amount and ordered the company to pay interest.
Sime Darby Property said the repayment will affect its cash position but will not materially impact its core operations. The company is reviewing the judgment and may consider an appeal. At the noon break on Tuesday, the share price was flat at RM1.35, valuing the company at RM9.18 billion.
Impact on Malaysian markets
The ruling is unlikely to trigger a significant market reaction. Sime Darby Property’s shares remained largely unchanged, and the broader Malaysian equity market did not register a notable shift. The decision may, however, prompt other developers to reassess compensation agreements with LLM and similar authorities, potentially tightening future negotiations.
Details from the source
The compensation dispute centred on seven plots of land compulsorily acquired in 2015. LLM contested the RM78.6 million severance and injurious affection component, arguing it exceeded the company’s entitlement. The High Court’s judgment, delivered on 13 July, confirmed LLM’s position and set the repayment figure. The court also addressed ancillary matters, including legal costs, on 20 July.
Outlook
Sime Darby Property’s management has indicated that the repayment will be absorbed within its financial planning and will not alter its strategic trajectory. The company is evaluating the possibility of an appeal, which could extend the legal process. Market participants should monitor any subsequent filings for updates on the company’s appeal strategy and potential impact on its financial statements.
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