Putrajaya’s plans for Kg Baru may cost up to RM10 billion, says Khalid

Diyana Ibrahim Diyana Ibrahim Updated 7 years ago · Published on 22 Apr 2019 1:10PM · 2 Comments

Kg Baru sits on prime city land but its status as Malay reserve land means that it cannot be sold to non-Bumiputeras. – EPA pic, April 22, 2019.

PUTRAJAYA needs between RM6 billion and RM10 billion to buy out all the landowners in Kg Baru so that the Malay reserve settlement in the city can be redeveloped without losing its identity and status, said Federal Territories Minister Khalid Samad.

The government’s decision to buy out all the landowners will allow for the area to retain its status as Malay reserve land, he said.

It would also ensure more organised redevelopment in the area, he said today.

With the government buying over the place, it can also avoid developers selling off unsold properties to non-Malays.

“Our proposal is for the government to take over Kg Baru. For that, we need to have enough funding.

“If everyone wants cash, and no one wants apartments in exchange for their land, which is the worst-case scenario, then it may need between RM6 billion and RM10 billion.”

The government will also consider giving landowners a mix of cash and in-kind payout in the form of apartments.

On how the funds will be raised, Khalid said there were several options.

One way is for the Kuala Lumpur City Hall to issue municipality bonds or sukuk, he added.

“Another is to establish a special purpose vehicle, which would take out a loan guaranteed by DBKL to finance the buyout.”

But he was quick to note that these depended on negotiations with landowners and the kind of repayment they seek for their land.

He added that almost 80% of Kg Baru settlers agreed with the government taking over the settlement instead of being developed by private parties. – April 22, 2019.

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Comments

  • Why should government intervene on this?

    Posted 7 years ago by Chean Ang Heng · Reply

  • Why must it always be the nons vs Malays issues. Stirr up none other by the Ministers be it Umno or PH. if there is to be unity who cares if the Malays want to sell off their properties to the nons or the nons to the Malays. It is a Malaysian affairs. If the government of the day is always protecting and shielding the Malays in the economic activities no way will the Malays develope themselves. It will only causes animosity by the nons in seeing that they are always the one to bear every burden on the failures of the Malays caused not by the Malays themselves but the Malay politicians. How long more do you expect the nons to be tolerable and patient when they are squeezed in every aspect. The malay politician are teaching the Malays to keep on harping on their entitlement when the special rights were over long long time ago. Do not create civil unrest by such stupid actions ,where a unified Malaysian is so much needed now . The country is in a mess and channelling the financial wealth to only one community is asking for real troubles. Start with Kampong Melayu and let it be a free market and free options instead trying to polarise and make it communal in residencies. We as Malaysian should not be seeing the landscape as Malay Village , Chinese villag or Indian village. Those who have the means let them have the free rights to do it. The selfish Malay politicians should stop playing the Malay agenda to the hilt. It is getting to be bothersome and creating rift among the Malaysian races.

    Posted 7 years ago by Lee Lee · Reply