PN-led Putrajaya to abandon costly Kampung Baru redevelopment plan

The government has moved to shelve plans to redevelop the Kampung Baru Malay enclave, citing a reported lack of funds.

Federal Territories Minister Annuar Musa reportedly said the government would require close to RM7 billion to buy out all the land in a deal proposed by the previous Pakatan Harapan administration.

"There is no allocation or funding for the en-masse buy out of Kampung Baru land as of now.

"And even if everyone agrees to it, who will be the developers? We need close to RM7 billion of which at this point has not been decided on (how it would be sourced)," he was quoted as saying by the News Straits Times.

Annuar said that even if all landowners agreed to the previous government’s recent bid to buy out their land, the lack of funds would remain a fundamental concern, on top of legal issues surrounding Kampung Baru's land proprietorship.

Annuar, who noted that only 60 percent of Kg Baru owners had agreed to the deal, reportedly said this after a meeting with the Kampung Baru Development Corporation yesterday.

"The other 40 percent didn’t give consent, and if this remains so, it is a fundamental question that needs to be accounted for.

"We cannot do something others don’t feel comfortable with or agree to," he said.

Annuar further described the Kg Baru issue as being "quite complex" and there were aspects which had remained unresolved for over 30 years.

"What is clear is that we need to do something that is appropriate to ensure that the land owners in Kampung Baru and the enclave itself enjoy progress at par with that of other places in Kuala Lumpur," he said.

Last month, Annuar said no decisions have been made on the future of Kampung Baru as he needed to be briefed on the matter.

Previously, the Harapan administration had made an offer of RM1,000 per square feet of land to be developed and a final decision was expected to be announced in June. - Mkini