Report of the National Inquiry into the Land Rights of Indigenous Peoples 33 3.71 Furthermore, while the State is required to compensate for loss of crops on Orang Asli lands that are being acquired or alienated to others, the State authority is not obliged to pay any compensation for the land itself, or to replace it with suitable alternative land.54 This interpretation has often been used by the State authority to provide the legal basis for the appropriation of the Orang Asli’s traditional territories. That is, in matters concerning Orang Asli land, the State authority is perceived to have the final say.55 3.72 This perception of the State’s rights over Orang Asli customary lands unfortunately persists. This is despite, as discussed in Chapter 4, recent court decisions being categorically proactive and clear as far as the recognition of Orang Asli rights to their traditional lands and territories under common law and in compliance with the Federal Constitution.56 The failure of the State to regard these court decisions as binding precedents to be adopted in similar instances of Orang Asli land claims is also contrary to its own declared policy to recognise and protect the cultural identity and customary lands of the Orang Asli.57 3.73 Called the Statement of Policy Regarding the Administration of the Orang Asli of Peninsular Malaysia, this 1961 Policy Statement, among other things, states that: S.1(c) The aborigines shall be allowed to retain their own customs, political system, laws and institutions when they are not incompatible with the national legal system. S.1(d) The special position of aborigines in respect of land usage and land rights shall be recognized…. Aborigines will not be moved from their traditional areas without their full consent. 3.74 It is therefore evident that there is a clear variance between the recognition of Orang Asli rights at the policy level and in the application of the Aboriginal Peoples Act at the practical level. 54 Sections 11(1) & 12, Aboriginal Peoples Act 1954. 55 Colin Nicholas, Jenita Engi, Teh Yen Ping (2010), The Orang Asli and the UNDRIP: From Rhetoric to Recognition. COAC, Subang Jaya, p. 77. 56 Colin Nicholas (2010), Orang Asli: Rights, Problems and Solutions, A study commissioned by SUHAKAM, p.7. See also Chapter 4 (Legal Framework) for a discussion of the recognition of Orang Asli native title rights under common law. 57 Statement of Policy Regarding the Administration of the Orang Asli of Peninsular Malaysia. Department of Orang Asli Affairs (JHEOA), 1961. chapter 3_a4.indd 33 7/5/13 6:43 PM