Kampung Baru land acquisition may cost as much as RM10b

KUALA LUMPUR: The government is studying ways to finance the purchase of 101ha of land in Kampung Baru here.

This is before the authorities plan to redevelop the Malay enclave.

Federal Territories Minister Khalid Samad said his ministry was looking at options to raise capital to buy land in the village to ensure a structured development.

“At the same time, we want to maintain Kampung Baru as a Malay (reserve) area, with housing units and shop lots to be built there, among others.

“The issue is how do we raise the funds, estimated to be between RM6 billion and RM10 billion, for land acquisition?

“The old approach was for land owners to enter into an agreement with developers. The company will develop the land and, in return, the land owners receive a few housing units, for instance.

“However, this approach has resulted in patches of development in the area.

“We need a new master plan, and for that to happen, we need to acquire the land.

“According to a survey, 80 per cent of land owners here had agreed to this idea. However, we need the money before we can make them an offer.

“There are three or four master plans on the development of Kampung Baru.

“We may look at all these master plans and combine the idea for the redevelopment project.”

One of the proposals was the Kampung Baru Detailed Development Master Plan, launched in 2015.

“This (redevelopment issue) is my KPI (key performance indicator) that I must settle in this term.

“For this year, I hope we can work on the financial side of it (the redevelopment),” Khalid said.

He said the people of Kampung Baru would be more receptive to the idea as the government would ensure that its Malay land status was retained.

“It is better for the redevelopment plan to be a government initiative, whether it be done by Kuala Lumpur City Hall or other agencies.

“We are looking at the City Hall angle and we are looking at a few options, including a municipal bond, which is common in European cities.”

There are 1,350 plots of land involving 5,300 landowners and heirs in Kampung Baru here, which was established in 1900.

The Kampung Baru Development Corporation reportedly obtained consent from the owners of only 18 plots.