Squatters have existed in Malaysia since Malaya (as it was then called) is here. There were turning points for the massive migration of Malays to Kuala Lumpur. The objectives of the paper are the issues and policies regarding the aftermath of resettlement of squatters in Kg. Desa Hormat Tambahan, Selangor. The methodology of the research involves a pilot study and a qualitative study where exploratory and case study analysis methods were used. A questionnaire was prepared and interviews were conducted in the resettlement area. The primary reasons people became squatters were based on economic and social reasons, followed by legal reasons.

Third World countries, among the reasons that have contributed to the existence of squatters can be related to the occurrence of dwellings that have been erected on unutilized land within and surrounding the city boundaries. Somehow, with massive increase of numbers of squatters in urban areas, it developed social ills and obstacles to the government in proceeding with rapid development, for example, as to develop new townships for certain areas, or to have proper settlement areas for all citizens. With the implementation of “Zero Squatters” (“Setinggan Sifar”) by the Government of Malaysia, somehow, it has led to success. The Bar Council of Malaysia somehow raised their concerns and comments pursuant to this policy, according to the President, Miss Ambiga Sreenevasan (Press Statement: “Zero Squatters”, Malaysian Bar, at www.malaysianbar.org.my), in implementing this policy, negotiations and the willingness to give settlers affordable and decent alternative housing is of the utmost importance. The Malaysian Bar firmly stressed that it is the responsibility of the state government to ensure proper resettlement in such circumstances. This paper aims to highlight issues and policies faced by settlers on the aftermath of the re-settlement from urban squatters to better housing areas.