The proposed redevelopment of Kg Baru in Kuala Lumpur is shelved for the moment.
“There is no allocation or funding for the en masse buy out of Kg Baru land as of now,” Federal Territories minister Annuar Musa was quoted as saying.
Even if all owners in that Malay enclave agreed to a buyout, then there is the question of “who will be the developers”.
“We need close to RM7 billion of which at this point has not been decided on (how it would be sourced),” he was quoted as saying.
Annuar is reported as saying that there is simply no money left to fund the estimated RM7 billion redevelopment plan.
Describing the proposed redevelopment as “quite complex”, Annuar added that many things which still needed to be looked into and views to be gathered.
Annuar’s predecessor Khalid Samad said the buyout is to be finalised in June this year.
In January, Khalid said Kampong Bharu Development Corporation (KBDC) had met landlords and the community to discuss many of the area’s ongoing issues.
Khalid also said that KBDC had already met 50 percent of the 5,374 landowners in Kampung Baru, of these, he said, 97 percent had indicated that they are ready to sell their lots to make way for the Kampung Baru Development Plan, which had yet to be finalised.
However, Annuar has contradicted this statement, saying only 60 percent had agreed to sell their lots.
“About 60 percent of landowners and heirs have agreed (to sell) while 40 percent don’t agree. If this situation remains, that is something we need to address as this is not a small number,” he added.
In light of this, Annuar said he has set up a special committee made up of professionals who are experts in planning, law, building and other related areas.
“They will look into these areas where there are several problems which were not shared with the public before,” he said.
He added that as Kampung Baru has inherited many problems, some of which date back 40 years, something needs to be done to ensure that all landowners will be able to enjoy fair development in Kuala Lumpur.
KBDC chief executive officer Zulkurnain Hassan said the redevelopment proposal, including the survey on land, continues to go ahead until it is asked to stop.
The previous Pakatan Harapan government proposed buyout was at RM1,000 per sq ft – RM850 in cash while the remaining RM150 in shares under a special purpose vehicle (SPV) that will facilitate redevelopment activities.
Last October, Khalid also reportedly said that the latest offer was “the government’s final and best offer”, adding that landowners who opt to buy real estate in the new development project would also get a 15 percent discount.