THIRTY-eight households in the Selangor State Development Corporation (PKNS) Flats in Kampung Sungai Baru are refusing to move out even after an eviction notice following a takeover of the land by a developer.

Those refusing the order say they will stay put to fight for higher compensation than the RM250,000 offered per household in the high-value prime location facing the Petronas Twin Towers. 

Hashim Mohd Salleh, 61, who owns a unit and lives in the flats, said he would not give up without a fight to get adequate compensation.

The trader, who works in Kuala Lumpur, said there was nowhere else he could move his family to for the RM250,000 offered.

“Even if we move out, we don’t really know where to go,” Hashim told The Malaysian Insight, when met at his residence recently after news of eviction notices was shared widely on social media.

The last Malay reserve village in the middle of the city, Kampung Baru is iconic and dear to its residents and heritage conservationists who want to preserve the area’s cultural and historical significance.

Plans for its redevelopment have been controversial, involving disputes over the amount of compensation from developers and the aesthetics of new projects that alter the area’s traditional Malay look and feel.

The PKNS flats, located near the Saloma Bridge, has eight blocks of 264 residential units and sits on 1.4ha of land.

Hashim and his wife own two units in blocks E and N, respectively, while the unit they currently live in with family members is in block C, rented for the past 30 years.

“We have the right to fight for our flat units because we have grants. We are not squatters,” Hashim insisted.

Like him, the other residents who are refusing the compensation offered say the amount is too low – three times lower than the market valuations given by private appraisers the residents appointed.

Based on those estimates, compensation should be RM1,500 per square foot, or an estimated RM600,000 per flat unit, Hashim said. 

Apart from the blocks, the surrounding area that is also targeted for development includes 98 units of terrace houses on 2.2ha of land. These have a lease balance of 57 years. 

Promises, but no black and white 

The issue of land acquisition in the area started in 2016, when the developer, Ritzy Gloss Sdn Bhd, which is a subsidiary of Suez Capital Sdn Bhd, made an offer to develop the area through a joint venture with the residents. This was aimed at giving the residents a say in their relocation and the development plans. 

Since then until 2020, the developer has reportedly obtained the approval of 226 flat unit owners and 27 terrace house owners in the area.

The development plans for the area include the resettlement of all flat and terrace house residents in new apartment blocks that are promised to be of high value. Luxury condominiums, offices and retail space would be built in the land to be taken over. 

Ritzy Gloss has said that the new apartments where flat owners would be resettled will be between 900sf to 1,200sf and worth between RM850,000 and RM1.2 million.

Despite the promise of a high-value property, the 38 flat unit owners and another 71 terrace homeowners have refused to accept the deal because the developer failed to provide official documents to back their claims.  

Ritzy Gloss in June last year applied for land acquisition of the area using Gazette Section 8 of the Land Acquisition Act 1960. The law enables the developer to take over the land with compensation given to the residents. 

Late last month, the flat residents who had refused the developer’s compensation were given a document known as Form K. 

Hashim said the document dated March 29 stated that residents must vacate their units. 

However, many are puzzled and worried because the document does not state a time period for them to leave. 

Mahizan Yeop, 57, who received Form K, said the lack of specifics have sparked rumours that residents must vacate within 21 days. 

“There is nothing stated here. I have read it a couple of times and suddenly I am hearing talk (that I have to leave) within 21 days. That’s illogical,” said the retiree, who was offered compensation of RM204,000 for her unit inherited from her husband’s father and where she has lived for 30 years. 

She and other residents have taken legal action to fight for higher compensation.  

She said the purpose of taking the matter to court was to obtain adequate compensation that could be used to buy another residence. 

“We will fight in court. We are not asking for millions of ringgit but we want the compensation to be commensurate so that we can buy another house.” 

She added that most Kampung Baru residents are elderly and no longer working and did not want to deal with taking on new debts in order to find a new home. 

Mahizan said the case she filed would go to court this Thursday. 

Roziah Yusuf, 59, another resident, is also taking legal action. She no longer works as she is taking care of her sick mother. 

She said those who accepted the developer’s compensation will be given temporary housing in Kerinchi until their own unit in the upcoming redevelopment of Kampung Baru is completed.

But she added the developer still has not provided documents in black and white to guarantee this. 

“There is no proof of guarantee from the developer. If anything bad happens, there is no black and white. What then? Do we have to live under the bridge? 

“If they want to do this, they should do it the right way.”

On the change.org platform, a petition has also been started to fight the developer’s use of the Land Acquisition Act. – April 10, 2022.