FT minister to look into objections to Federal Hill land deal

Khalid Samad says he may commit to stopping the project if the objections are strong enough, but warns that the reversal of any agreement is a serious matter.

Federal Territories Minister Khalid Samad.

PETALING JAYA: Federal Territories Minister Khalid Samad has agreed to look into objections by Bukit Bandaraya residents over a land swap for a proposed property development by SP Setia Bhd on government land at Federal Hill.

“I am interested to know the nature of the objections by the residents, whether they are regarding the proposed land use, or the way work is being carried out, or any other reason.

“Obviously, a reversal of any agreement, especially one made more than five years ago, is a serious matter and cannot be done without good reason. There may be adverse consequences.

“However, if the reasons are good enough, it may be considered,” he said to FMT.

He was responding to Lembah Pantai MP Fahmi Fadzil, who had urged the government to reverse the land swap deal.

The land was obtained through a privatisation agreement in 2012 involving a swap of the parcel with the government in exchange for: i) the planning and development of a health research facility complex known as “Kompleks Institut Penyelidikan Kesihatan Bersepadu” in Setia Alam; ii) the transfer of a piece of freehold land in Setia Alam of approximately 41.5 acres for the “Kompleks Institut Penyelidikan Kesihatan Bersepadu”; and iii) construction of a clinic to be known as Klinik Bangsar and 24 apartments on the land.

In March, The Edge reported that SP Setia had entered into a sale and purchase agreement with Mekar Gemilang Sdn Bhd to acquire the remaining 50% stake in Setia Federal Hill for RM431.89 million cash.

Setia Federal Hill’s core asset are the two parcels of leasehold land near Bangsar, Kuala Lumpur, totalling about 51.57 acres.

Khalid told FMT that he could not stop a project until he understood the seriousness of the objections towards it.

“I will give a commitment to stop a project if the objections are serious enough to warrant such action. Stopping a project is a serious issue.”

Bukit Bandaraya Residents Association adviser Mumtaz Ali meanwhile asked why there had not been any engagement with the local community before the deal was approved.

“Fundamentally and in principle, the NIH land is institutional land. As such, it must only be used for institutional purposes, not for mixed development.

“Assuming changes were made for the use of this land, did the authorities go through a transparent and open procedure engaging the local community?

“The NIH land must be restored to what it was originally meant for, that is institutional purposes,” he said.

He added that Federal Hill was one of the few green lungs left in Kuala Lumpur suburbs, and had historical housing for government personnel.

“Why must they be deprived of this small privilege, the benefit of being close to Kuala Lumpur? The buildings have historical and sentimental value for many government personnel, their families and society at large.”

He also warned that the development of high-rise buildings in the area would have a negative impact on surrounding locations such as Lengkok Abdullah and Lorong Travers.

“Even Bangsar would not be spared.

“I therefore invite the minister to come and see for himself. Join us for a walk this coming Sunday,” he said. --FMT