Analysing the Principle of Maslahah in the Compensation Scheme for Land Fraud in Malaysia

Safeguarding rights to property from any unwarranted acts is not only guaranteed under the Federal Constitutions of Malaysia but it is also one of the maqasid of al-syariah. Thus, any measures towards property protection serves the public interest and is desirable. In addressing the issue of land fraud, many parties have proposed for the establishment of a compensation scheme which provides monetary relief to the land fraud victims in the event their lands are irrecoverable due to the legal constraints. The scheme is currently unavailable in Malaysia unlike in some other Torrens land jurisdictions such as Australia and New Zealand. This paper analyzes the syariah perspective on the proposed compensation scheme through the principle of maslahah (public good). Maslahah is one of the extended methodological principles of Islamic jurisprudence which can be the basis of law. This principle plays a crucial role in interpreting and applying Islamic legal rulings ensuring that laws align with the needs and wellbeing of the society. A qualitative analysis was made based on the primary and secondary sources. The discussion underlines the need for a secure land tenure system as a catalyst for economic activities and sustainable development. Measures in the form of compensation or insurance are necessary to protect the inherent risks in land dealings. The findings indicate that the principle of maslahah can be the basis for the establishment of the compensation scheme in Malaysia. The study provides conceptual justification for formulating a workable and syariah compliance compensation scheme in the future.