To encourage native smallholders to participate in commercial land development, a series of land development schemes were undertaken from the 1960s to the 1980s. These have been documented by many writers such as Hong (1987), King (1988), Cleary and Eaton (1996), Ngidang (1998) and Majid Cooke (2002).

From 1964 to 1974, land resettlement schemes modeled after the integrated style of development adopted by the Federal Land Development Authority (FELDA) of Peninsular Malaysia were introduced and implemented — initially through the Agriculture Department and later (1972–80) through the Sarawak Land Development Board (SLDB). This involved clearing of new land and relocation of natives into resettlement schemes dedicated to the planting of cash crops (Ngidang 1997). Unlike the FELDA schemes, where landless workers were settled on state land, participants in Sarawak were relocated to areas where the local communities were established traditional landowners. The farmers were given loans that they had to repay out of incomes which were crucially dependent on the fluctuations of world commodity prices, and as a result, most were unable to make the repayments. The schemes also lacked the pool of workers and expertise required for their successful implementation (King 1988: 280) and all were eventually abandoned due to management problems (Ngidang 2001).

In 1976, the Sarawak Land Consolidation and Rehabilitation Authority (SALCRA) was established with the object of developing agricultural land in situ (Hong 1987; King 1988: 283). This was a joint venture between the SALCRA and native farmers in which the participating households retained their ownership (Munan 1980; Humen 1981: 95–106). Subject to payment of costs by the owner, large consolidated blocks of land have been planted with cash crops. The SALCRA’s function includes consolidation and rehabilitation of land, and provision of advisers and training facilities in various aspects of farming and land management. When it appears that the participants have acquired the know-how to manage the schemes, the estate should be divided among the households, thus enabling them to obtain a demarcated piece of land to which they will be given a grant in perpetuity. Although there has not been any rationalisation and distribution exercise yet,^[10] the eventual obtaining of titles for landowners through their participation appears to be an ideal solution to the problem of modernising agriculture in many native areas. Substantial alienation of land to non-native private companies with commercial interests has been avoided. To some extent, rural–urban migration has also been arrested. However, the success of the scheme is dependent on continued government funding.

Parallel to the SALCRA, the Land Consolidation and Development Authority (LCDA) was set up in 1981 to promote the development of both agricultural and non-agricultural projects. The LCDA has powers to acquire both state-controlled land and Native Customary Land for private estate development. It has powers to act as an intermediary between landowners and corporations so that private investors can be invited to participate in land development subject to allocation of shares in the relevant companies. The Land Code was amended in 1988 and 1990 to allow corporations, including foreign companies, to purchase land, including Native Customary Land, for this kind of development.

The formation of the LCDA was a further step in government involvement in large-scale land development as it became an agency and a conduit to ‘harness private capital for developing the land as estates’ (Sarawak Government 1997). This paved the way for the introduction of the joint venture company (JVC).