KG Baru residents are dejected following Putrajaya’s refusal to offer more than RM1,000 per sq ft for their land despite promising a good price if the government of the day is Malay-centric.

They sought RM2,000 psf from the Pakatan Harapan administration but were offered only RM850 psf with RM150 in shares.

The residents thought their fortunes would change when Perikatan Nasional took over but it has proven not to be the case.

Kampung headman Ab Malek Salleh told The Malaysian Insight that the majority of residents refused to sell their plots for less than RM2,000 psf when PH was in office.

“If the RM1,000 psf offer by PH was rejected by many, then definitely, the current offer of less than RM1,000 will also be rejected.

“We expect at least RM2,000 psf.”

Barisan Nasional politicians previously told Kg Baru folk that more would be offered for their land, but this has not happened even after these leaders returned to the government under PN, he said.

“It doesn’t matter if it’s PN or PH. Both have failed to resolve this issue.

“One problem they need to resolve if they want to develop Kg Baru is our accommodation. Where will we live?

“It doesn’t matter which pact is in the government. The new and old ones are pretty much the same.”

He added that residents have not been presented with alternatives should they give up their land for development.

A resident, who wanted to be known only as Khairul, said during the PH administration, an Umno leader claimed that the price of Kg Baru land could reach RM3,000 psf based on market value.

“What happened to the RM3,000 market value he previously claimed? Did he have another agenda?

“A minister can’t simply discount the land value, as Kg Baru is located in the city centre.”

The 48-year-old was referring to a statement last year by Annuar Musa, now the Federal Territories minister, in which he said the deadlock over Kg Baru would end if the government was willing to offer at least RM3,000 psf.

“There is no need to politicise Kg Baru. Just pay according to the market value and the problem will be settled.

“The issue is, how much lower should the price be compared to the value of nearby areas?

“We understand that the price should be less, but surely not a mere 30% of the land value that can reach RM3,000 psf.”

Last week, however, Annuar said land acquisition at RM1,000 psf cannot be completed as only 61% of owners agreed to the offer.

He also said the PN government does not have enough resources to fund the acquisition, estimated to cost more than RM7 billion.

A new approach will be taken to realise the Kg Baru development plan without the need to sell land to outsiders, he added.

Khairul said PN, as a self-proclaimed Malay government, should help the community.

“As Malays, they should help fellow Malays. Many of us landowners, including Umno supporters, disagree with the government’s action.”

He said Annuar’s comments have disappointed residents, especially those who have agreed to sell their plots.

“We are extremely disappointed. People harboured hopes. For a family of 11 like ours, with one sibling who has died, it is not worthwhile to sell our land at lower than RM850 psf.

“Kg Baru folk comprise three groups: the VIPs, the middle class and the low-income group. The low-income group receives government aid, but it’s not easy for them to sell their land as they have strong principles.”

Meanwhile, Kg Baru corporate communications management director Roslan Mohammad said the land value is not as high as claimed.

The earlier bid price of RM850 psf was the maximum estimation by the Valuation Department, he said.

“The RM850 we offered then was the highest according to the valuation. We even added shares worth RM150 to the offer.

“We also allowed the landowners to deal directly with the developers, as well as help them find suitable developers.”

On Annuar’s statement, he said it was made when the Umno man was not in the government.

“Annuar made that comment when he was not part of the government. Now that he’s a minister, he sees the real picture: the bid price cannot exceed the figure recommended by the Valuation Department.

“I don’t want to comment much on his statement. However, I understand that after joining the government, he became more realistic about the land value, which is not as high as claimed by some parties.”

One reason is that Kg Baru land is classified as vital for tourism, and so, its value cannot rise too much, he said.

The PH administration’s RM1,000 psf offer involved RM850 in cash and RM150 in shares of a special purpose vehicle.

It was the highest figure set by the Valuation Department, taking into account the fact that the development plan only saw a 61% acceptance rate and involved an estimated acquisition cost of RM7.4 billion, with other costs taking the total up to RM10 billion. – September 2, 2020.