SBC/CIR/033/2026

29th April, 2026


Dear Members of the Selangor Bar,


Upon verification with Pejabat Pengarah Tanah dan Galian Selangor (PTGS), we wish to clarify that for a charge in favour of a bank or financial institution involving a foreign-owned company, consent under Section 433B of the National Land Code is not required, provided the transaction is purely for financing purposes and does not involve any transfer of beneficial ownership or acquisition of proprietary interest by the foreign party.


The charge is regarded as a security arrangement only and does not amount to a disposal or dealing requiring State Authority consent under Section 433B NLC.


We further understand that modifications are currently being made to the e-Tanah system to update and reflect the relevant form and submission process in line with this clarification. During this transitional period, members are advised to continue using the current form available in the system without executing it until the revised form and updated process are fully implemented.


Members are nevertheless advised to review the specific title conditions and restrictions in interest endorsed on the title, as well as any applicable State policies, to ensure compliance before presentation for registration.


Where there is uncertainty, confirmation with the relevant Land Office or PTGS is always encouraged to avoid delays or rejection.


We trust this clarification will assist members in handling such transactions.


Thank you.


Yu Ai Ting

Chairman

Selangor Bar Committee

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