According to the Straits Times, the government has revealed plans to buy out all landowners in Kampung Baru to redevelop the entire area.
Federal Territories Minister Khalid Abdul Sahmad told reporters at a press conference in Putrajaya that this could cost between RM6 billion and RM10 billion if all landowners agree to sell their property.
Source: gps mycity
He was quoted by The Star as saying,
“The money will be used to buy-out the landowners and develop it as a whole.”
“The figure is derived from an estimated cost if all the landowners settled for cash pay-outs but we are also looking at offering cash with apartments.”
“Once that is sorted, we will look at the master plans. There are many master plans and revised versions.”
The government is looking into issuing municipal bonds or bank loans in order to raise the funds needed for this major redevelopment project.
Kampung Baru is gazetted as Malay reserve land, which means that only those of Malay ethnicity can buy and own property and land there. So far, the Federal Territories Minister stated that about 80 per cent of landowners at Kampung Baru have agreed to having their lands bought over by the government. He was quoted by the Malay Mail as saying,
“This is something in the process, but for the people in Kampung Baru they prefer if the government were to take over their land compared to a developer because once they take over, they can change (the terms) according to them.”
“For instance, selling the property to non-Malays despite the original planning to maintain Kampung Baru as a modern Malay city. So it is better that this remains a government initiative.”
Source: the star
The Kampung Baru Development Corp (KBCD), established in 2012, is reportedly dealing with 5,000 landowners involving 1,355 lots for this redevelopment project. However, Khalid Samad assured that they will find the right way to appease landowners while preserving it as Malay reserve land. He hopes this redevelopment project will eventually transform Kampung Baru into a modern “Malay City”.
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