At a press conference at Parliament building this morning, Raja Ning Chik said the move by the government was made after taking into account feedback from the stakeholders.
The proposed law was to be read for the second time today, the commencement of the 12th Parliament's third meeting and fourth session.
In an immediate response to the withdrawal of the bill, Pakatan Rakyat declared it as a victory in its ongoing struggle.
In a tweet from PKR's Batu MP Tian Chua said: “Viva, victory to Pakatan Rakyat and the late DrLoLo," referring to PAS MP for Titiwangsa, Dr LoLo Ghazali, who passed away in May this year after succumbing to cancer.
PAS had spearheaded the campaign against the bill and called for its terms to be renegotiated with the participation of Kampung Baru residents and landowners of the traditional Malay village.
The bill to set up a corporation to take charge of development in Kampung Baru was tabled for its first reading in the Dewan Rakyat on Dec 14, 2010.
The corporation is to govern the 111-year-old enclave of 90.2 hectares located within the central district of Kuala Lumpur, where seven traditional Malay villages are located.
According to the amended Kuala Lumpur Draft Plan, the entire area is to be developed into a commercial district.
The second reading of the bill was supposed to have taken place during the March sitting of Parliament, but was put off.
Raja Nong Chik had said then that the delay was to allow the landowners and their heirs to provide feedback.
Amendments to the bill were then proposed, to be made at the parliamentary committee level.
[More to follow]
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