23rd Feb 2025
Approximately RM65 billion worth of assets, including real estate and cash, remain undistributed to rightful heirs in Malaysia due to inadequate estate planning. These assets include RM500 million in cash under Amanah Raya Bhd (AmanahRaya), RM60 billion in real estate managed by the Land and Mines Office (PTG), and RM4.5 billion in unclaimed money under the National Accountant Department (JAN).
AmanahRaya, the government-appointed trustee and estate administrator under the Public Trust Corporation Act 1995, reports that only about 5% of Malaysia’s 34 million population have engaged in estate planning. This highlights a significant lack of awareness regarding posthumous asset management.
According to AmanahRaya’s Group Managing Director, Ahmad Feizal Sulaiman Khan, these undistributed assets have accumulated over the past decade due to multiple factors, such as:
Owners failing to engage in estate planning or establish trust management.
Incomplete documentation, such as missing death certificates, birth certificates, or land titles, which delays the inheritance process.
This situation has led to complications, including stalled land development due to unresolved ownership issues. The distribution of Muslim-owned assets follows faraid (Islamic inheritance law) and often requires court proceedings, while non-Muslim estates are governed by the Distribution Act 1959. These legal processes can be time-consuming, especially when heirs lack the necessary documents.
In addition, Malaysia has about RM12 billion in unclaimed money, of which RM4.5 billion belongs to deceased individuals. Due to missing wills or heirs being unaware of these funds, the money remains unclaimed.
Estate planning is crucial for ensuring smooth asset distribution. Available instruments include wills, trust management, and hibah (gifting) as alternatives to conventional inheritance distribution methods.
Finance Minister II, Datuk Seri Amir Hamzah Azizan, previously stated that RM17 billion in unclaimed money had been handed over to JAN by companies and firms. As of October 31, RM4.2 billion had been successfully claimed, leaving RM12.8 billion unclaimed.
This underscores the urgent need for increased estate planning awareness and proper asset management to prevent financial assets from being locked in legal limbo.
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