The defence minister says the US government bought the land for RM420 million for a new embassy building after a successful bid.
Khaled said the sale was carried out in accordance with LTAT’s policies, procedures and governance requirements, as well as relevant laws.
He said the sale was part of LTAT’s efforts to rebalance its asset portfolio.
“The LTAT-owned land in Ampang Hilir was bought by the US government to build a new embassy,” he said when winding up the debate on the 2027 budget for his ministry in the Dewan Rakyat today.
“There was indeed a tender. Several companies submitted bids, and the Americans succeeded.”
He also said the land ownership remains with the Federal Lands Commission, as it is leasehold.
On a separate matter, Khaled said the defence ministry was monitoring the military build-up on Balabac Island in the Philippines and assessing its implications for Malaysia’s national defence.
He reiterated that the Philippines’s growing military presence and capability, backed by the US, could raise tensions between major powers “in such a small and narrow geographical area”.
He said any prolonged tension or conflict could spill over to nearby areas, including Sabah, even though Malaysia is not involved.
“I want to assure the people of Sabah that the ministry is constantly monitoring these developments,” he said.
Balabac Island, about 50km north of Sabah, is one of nine sites in the Philippines made available to US forces under the Enhanced Defence Cooperation Agreement.
The military build-up on the island includes upgrading its base and developing a 3km airstrip.
Prime Minister Anwar Ibrahim had previously raised concerns over the militarisation of Balabac amid growing US-China rivalry for influence in the South China Sea. - FMT
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