AN inalienable charitable endowment under Islamic law, a wakaf system, is the way forward to ensure Kg Baru remains in the hands of the Malays, said stakeholders.

They told The Malaysian Insight only such a system can ensure the historic Malay settlement will remain free from political uncertainties or change of governments.

This is in view of the proposed development by the previous Pakatan Harapan government, which a majority of villagers and settlers rejected.

They now hope the new Perikatan Nasional government would allow them to pursue their own development proposal based on the wakaf system.

Kg Baru Landowners’ and Beneficiaries’ Association (Pewaris) secretary Zainudin Ismail told The Malaysian Insight that through the wakaf system, landlords would not have to worry about losing their land rights as their lots would be guarded by a single trustee.

Owners have also expressed a desire to cooperate with the Federal Territory Islamic Religious Council (MAIWP) and the endowment fund agencies involved in the development of the Malay enclave, said Zainudin.

“We do not care about any government change at all as the wakaf system won’t be affected, as it is protected by Islamic laws.”

Zainuddin said the method of financing through wakaf is also less risky than loans from financial institutions, as it does not involve interest.

Through this system, he said, landowners would have to submit their grants to MAIWP, and the agency would issue a wakaf certificate to the settlers and landowners.

“The term ‘wakaf’ is something that is permanent for land or building, which cannot be sold.

“Landowners can also set the length of time they want to lease the land, for up to 30 years or forever. It depends on them,” Zainudin said.

Pewaris hopes to place an active role developing Kg Baru and has proposed the use of the wakaf system as a way to protect settlers and landowners.

Under its proposal, landowners would be getting higher prices using the wakaf system than the previous government’s offer.

“Our offer is RM1,250 per sq ft, the offer of (former federal territories minister) Khalid (Samad) is only RM1,000,” he said, referring to PH’s last offer to the landowners.

“The association now has 15 parcels of land, with each parcel containing between 15 and 20 lots of land for which the owners have agreed to cooperate with us.”

Under the plan, the parcels would be developed as pilot projects, he said.

“In addition to cash payments, through land revenue, owners will also be provided with a deposit to buy residential units built on their land, in addition to shares in the joint venture created by the owners of the parcel.

“Under this proposal, their heirs and descendants can live in Kg Baru, without having to leave Kuala Lumpur as it is not easy to have a home in the capital.

“The owners provide the land, MAIWP provides the capital and the profits from the development will be shared, following the allocation,” he added.

Pewaris also proposes that a special wakaf fund for the development of Kg Baru.

The joint venture company, he said, is responsible for overseeing and maintaining the buildings.

Zainuddin said profits will be returned to the wakaf fund and used to build up other parcels, as funds for development will no longer be a problem.

He submitted the proposal to Federal Territory mufti Zulkifli Mohamad Al Bakri and a meeting is scheduled for this week.

“After the outcome of the meeting, we will ask him to send word to the Yang di-Pertuan Agong, and joint heirs with MAIWP will conduct a site visit with the owners.”

Zulkifli is now minister of Islamic affairs in Prime Minister Muhyiddin Yassin’s cabinet.

Over the years, Kg Baru’s redevelopment plans have failed.

PH offered cash payments of RM850 sq ft and RM150 in shares.

In his latest statement on the issue, Khalid said he expects PN to resolve the issue.

According to the Shah Alam MP, this was because in a meeting between the landowners and the Kg Baru Development Corporation (PKB), 60% of the 5,374 landowners agreed to sell their land.

The group, however, objected because all the options offered by the government at the time will lead to a loss of their land.

Zainudin said the owners are now working with the Land Professionals Association of Malaysia (FIRST), to enable the wakaf system for the development.

Its president, Ismail Omar, told The Malaysian Insight that through the system, the risk to the owners is minimal.

“The risk remains because the value in the future is unknown but the risk in terms of ownership does not exist, this is the land of God.

“Development risks and so on, we have a way to deal with. The important thing, it is returned to the heirs and their grandchildren until the end of the day,”” said Ismail who is also a senior lecturer at the Faculty of Technology and Business Management, Department of Real Estate Management, Universiti Tun Hussein Onn in Johor. – March 13, 2020.