Chinatown businesses suspicious over MRT acquisition

By Melissa Chi

August 09, 2011

Traders and shop owners express their opposition to the proposed acquisition of their properties for the MRT today. — Picture by Jack Ooi

KUALA LUMPUR, Aug 9 — Traders and shop owners in the historic tourist enclave of Chinatown expressed outrage today over government plans to acquire properties in the area, and are bracing themselves for the destruction of heritage buildings to make way for the Klang Valley MRT (KVMRT) project.

To date, 34 units have been served compulsory acquisition notices to make way for the KVMRT project, which runs along Jalan Sultan and Jalan Petaling, cutting through the arch that bears the name “Petaling Street” in three languages.

“That means they are trying to chak jiu pai (shut down our business) and cheong ngo dei ge fan woon (steal our livelihood),” said Daniel Wong, a trader who owns multiple properties in the area, during the first meeting with the traders last week. “How can we just stand by and watch?”

Bukit Bintang MP Fong Kui Lun speaks to traders and shop owners in Lok Ann Coffee Shop today. — Picture by Jack Ooi

Bukit Bintang MP Fong Kui Lun met with the traders today at the Lok Ann Coffee Shop, located in a building which will be acquired as well, and encouraged them to step up their protests and be vocal about their dissatisfaction over the acquisitions.

“Chinatown has witnessed the development of KL. It’s been around for a hundred years,” he said, adding that it was not right for the government to just take their businesses and properties from them. “All we can do now is protest against it.”

The traders told The Malaysian Insider that they are still in the dark as to why the government needs the properties and what is going to happen to the buildings and the current businesses that operate within them.

The area has a mix of new and old buildings, with some untouched since the day they were built, while others had been refurbished, with only the original frame of the building retained.

Some of the buildings are more than a century old.

Petaling Jaya Utara MP Tony Pua, who was also present to speak with the traders, told The Malaysian Insider that there was no reason for the government to acquire the land specifically for the MRT project.

“The MRT station is actually located a block away, so these shops are actually not above the MRT station itself. They are above the tunnel track but because the tunnel is actually 100 feet below ground, there is no reason for the government to acquire these particular shop lots. So the only reason why they would want to acquire these shop lots is so that they can profit from the appreciation resulting from the construction of the MRT system.

“We disagree with this kind of mechanism for the simple reason that when the government builds infrastructure, it’s meant to benefit the people in and around the area. You cannot, just because you build the infrastructure, claim that all the profits have to go to the government,” he said.

Traders and shop owners listen to MPs speaking in Lok Ann Coffee Shop. — Picture by Jack Ooi

Choy Foong Meng, 55, who owns Yi Xin Craft and Gifts Sdn Bhd, which she has operated in a rented shop lot on Jalan Sultan for the past 15 years, said she had doubts the acquisition was for the MRT project.

She said it looked more like a plan to widen the road leading to the Warisan Merdeka landmark.

The controversial RM5 billion project will be located within the enclave of Stadium Merdeka and Stadium Negara.

Construction of the 100-storey skyscraper, which is part of the mega project, will start some time this year and is expected to be completed in 2015.

After being silent since the first acquisition notice was sent out, representatives of the project’s owner and operator Syarikat Prasarana Negara Berhad will meet with the traders and shop owners on Thursday for a briefing.

The traders and shop owners told The Malaysian Insider that they still have a lot of questions to ask and hopefully, they will be informed of the government’s intentions.

“Hopefully, they will withdraw the notice to acquire these buildings. Otherwise, based on the current law, the owners have no choice but to sell the buildings to the government. The only thing they can dispute is the compensation and if they cannot agree on the compensation, then the government will take the land first, and then they can fight for the compensation in court. That’s what the law says, so then the courts will determine the final compensation but they have no right to reject or say no to the acquisition,” Pua said.

The DAP publicity chief emphasised that the government should figure out the cost of the project before moving to acquire the properties.

A spray-painted sign on Petaling Street denoting the area that will be acquired for the MRT project. — Picture by Jack Ooi

“I think the best way for the government to seek a better return for the MRT is really not to try to acquire these properties but it’s happening everywhere. For many of the stations, they are acquiring properties around the area for redevelopment, for future profits to pay off. I think the more important thing is to get the process of building the MRT right. They are building first, figuring out the cost later. I think that’s the worst type of model you can have for building large infrastructure because the cost can balloon to sky high amounts and you won’t be able to manage the cost at a later stage,” Pua said, adding that business owners in Bandar Utama, Petaling Jaya are facing the same situation.

The Malaysian Insider understands that the traders and shop owners will also meet with MCA representatives here tomorrow morning.

In 2003, Chinatown underwent a major RM11.3 million facelift with two large Chinese-themed arches placed at both ends of the street with a “Petaling Street” signage to welcome visitors.

A roof was constructed to cover the street, dubbed as the “Green Dragon”. The street is closed to vehicular traffic at night.

Chinatown was originally an area of medicine halls, coffee shops, funeral parlours, Chinese textile shops and traditional grocery shops. Today, there is an abundance of stalls selling knock-off clothes and accessories along with bootleg DVDs and CDs, although a small number of traditional Chinese businesses remain.

Backpacker hostels and no-frills hotels have also mushroomed over the years due to high demand.

Lembah Pantai MP Nurul Izzah Anwar speaking today. — Picture by Jack Ooi

Yap Ah Loy, the 19th century Kapitan Cina, opened a tapioca mill in Petaling Street where the tubers from his farms were brought to be ground into flour. Petaling Street is still fondly known as “Chee Cheong Kai” in Cantonese, or “tapioca mill street.”

Chinatown is within walking distance to the Pasar Seni LRT station of the Kelana Jaya line and the Maharajalela Monorail station, which prompted business and shop owners to question the need for an MRT station within such close proximity.

Lembah Pantai MP Nurul Izzah Anwar, who was also at the meeting with traders today, said a Parliamentary select committee should be set up as a bipartisan, independent third party to overlook the mega MRT project.

She said the committee should then be briefed regularly on the project’s progress so they can then relay the message to those who are affected.

The KVMRT project is considered the largest infrastructure project ever undertaken in Malaysia and the first phase alone has been estimated to cost upwards of RM20 billion.

Earthwork formally kicked off a month ago on July 8 on the MRT’s first line from Sungai Buloh to Kajang (SBK) but transport authorities have admitted they have yet to pinpoint a total cost for the project, which has been described as the country’s most expensive construction project ever.

The Land Public Transport Commission (SPAD) had previously announced that Gamuda-MMC, the MRT’s project delivery partner (PDP), would have to bear financial penalties should the project experience delays or incur cost overruns.