Khalid Samad Tunjuk Dunggu Di Kampong Bharu Pula

A few days ago Khalid Samad (who is quite jobless and does not seem to know what to do as Minister of Federal Territory) made a statement that his ministry would offer RM850 per square foot (psf) for land in Kampong Bharu to assist in its redevelopment. 

Khalid Samad has not asked about so many other Ministers who have tried and failed to redevelop Kg Bharu - because they have been offering basically the same business model for the redevelopment - with no success.

Somehow Khalid Samad thinks that just maybe, this time around, kut-kut, he will be successful using more or less the same old methods. 

Do read my conclusion - 

I want to suggest one solution, which will certainly work 100%. 
I guarantee 100% that it will work. 
I also guarantee that ALL these other methods will not work. 
That also I guarantee 100%.

True enough Khalid's offer of RM850 psf has kicked up a shit storm.  
The Dewan Perniagaan Melayu Malaysia (which I believe has been deregistered) has criticised Khalid's offer.

The DPMM says that Kg Bharu land is worth RM2000 psf !! 

Not the "measly" RM850 psf that Khalid Samad has offered.

Now just like that outcome of that Coroner's Inquiry in the Adib case, there is also plenty of confusion in this Kg Bharu case. (By the way I will be writing one more comment to the Coroner's even more confusing replies.)

To make it short Khalid Samad has released a Kenyataan Media in reply to the DPMM which is rather patronising, unprofessional and childish. Here is Khalid's Kenyataan Media. 

Khalid is basically telling the DPMM  'If you think you are so smart then you go and do yourself lah'. 

This is not a reply that is fitting a Minister. 
The DPMM is giving you feedback that you may be mistaken. 
They are not offering to redevelop Kg Bharu. 
They are not developers. 

Tak payahlah make patronising remarks. 
You are Minister. Bukan blogger. 

Ok ini isu tanah. It is much easier to handle this. Just stick to the facts (mostly CMV or Current Market Value for land in that area. And surrounding areas).  It is important that you have Darjah Empat arithmetic skills.

First here are three Land for Sale ads for Kg Bharu.

 This one above is RM292 psf. (Freehold)

 This one above is RM591 psf (commercial)

This one above here is RM218  psf 

You can check out these three land lots here :

https://www.iproperty.com.my/property/klcc/sale-7141682/

https://www.iproperty.com.my/property/kl-city/kuala-lumpur-city-centre/sale-7409366/

https://www.iproperty.com.my/property/kl-city/sale-6635313/

So this means that land in Kg Bharu is going for between RM200 to RM600 psf (depending on size, commercial, residential etc). The most valuable should be commercial land..

So Khalid Samad is offering to use our taxpayers' money to buy these lands in Kg Bharu at RM850 psf pula!! Banyak cantik !! 

That is much higher than the CMV (Current Market Value) of the lands now.  

Can Khalid Samad explain in Parliament what is the basis for offering such a high price for these lands - way above their present advertised offer prices - and using taxpayers' money ?

And please bear in mind - the prices in all those Land for Sale are still negotiable. 

That one ad says 'nego sampai jadi'. 

So how does Khalid Samad offer our taxpayers' money to buy Kg Bharu land at RM850 psf? Kau nak guna duit bapak kau ok lah. 

But this is taxpayers' money lah brader. 
Don't simply throw away taxpayers' money.

Now at the other extreme, the DPMM folks are saying that Kg Bharu land is worth RM2000 psf. This is an old argument considering that Kg Bharu is so close to the KLCC, where land is indeed valued around RM2000 or better (have not updated info on that one.) 

But that RM2000 psf is the value for freehold land.
Not Malay Reserve or bumi restricted  land.

The moment it becomes Malay Reserve land or bumiputra restricted land then the value drops drastically. In Kg Bharu (which is 100% Malay Reserve) the land is worth between RM200 - RM600 psf.  This is the Current Market Value (CMV) or Open Market Value (OMV) of Kg Bharu land. 

The question is if Khalid Samad wants to use OUR TAXPAYERS money to pay RM850 psf for Malay Reserve Land in Kg Bharu - how is he ever going to develop that land and then sell it BACK TO MALAYS only ("syarat-syarat pemilikan iaitu, milik Melayu, dipatuhi")  and get back our RM850 psf plus some profits?  

Dia macam ini brader.  Dengan nilai sekarang pun,   sekitar RM200 - RM600 psf, orang Melayu tak mampu nak beli tanah, rumah, kedai dan condo di Kg Bharu. It is beyond the means of most Malay purchasers.

When your land cost is already RM850 psf, you cannot sell any apartment or condo for less than RM1000 psf. Your project can go bankrupt. You have to build the apartments, shopping, commercial etc and then sell it to the Malay buyers for say RM1000 psf (minimum).  

This means for an 800 sf apartment that is already RM800,000. 
If 1000 sf apartment that is RM1.0 million. 

How many Malay buyers can afford to pay so much?  Hang kena realistic brader. So your idea of buying Kg Bharu land for RM850 psf (using taxpayers money) and then developing the land and selling it back to Malays will not work.

Before we go any further, what is the purpose of the Malay people, African people, Mongolian people owning any assets  like land if they CANNOT enjoy the full benefits from their ownership of those assets? If Malays cannot enjoy the full benefits of owning land then what is the big idea of owning assets in the first place?

Look at Kelantan. Non-Kelantanese cannot buy land in Kelantan. Except with special State permission. Which is highly restricted. The result? Kelantan is the most poorly developed State in Malaysia. Yes they have their land but they cannot eat their land. 

Just like Kg Bharu. Yes the whole area is Malay Reserve land. But many of the people living inside Kg Bharu are poor.  They cannot eat the land. 

You must sell the land to benefit from the land. (I am talking about development land ok, not paddy fields or kebun land).  It does not matter whether it is empty land or land that has been developed into housing and commercial lots. You still have to sell the houses, apartments, shoplots etc which you have developed. 

And if you only restrict Malays as the buyers then you might as well just sit on the land and smoke a rokok daun. Meaning the status quo will remain - just like in Kelantan. No change.

The same with Khalid Samad's idea of redeveloping Kg Bharu.   If Khalid insists that "syarat-syarat pemilikan iaitu, milik Melayu, dipatuhi"   then you will never be able to successfully redevelop Kg Bharu  at RM200 psf,   RM600 psf,   RM850 psf and worse at RM2000 psf.  It is just NOT GOING TO HAPPEN.

The solution needs no rocket science, it needs no education, only Darjah Empat arithmetic.  

First here is the falsafah : Allow the land owners in Kg Bharu to enjoy the full market value of their assets. Just like all other human beings who Allah swt has created. Otherwise what is the purpose of owning land? You cannot eat your land. 

If the Chinese, Germans, Indians, Canadians etc can enjoy the full benefits of their land ownership then allow the Malays the same rights. No more. No less. 

This means 

1. remove the 'Malay Reserve' classification from Kg Bharu. 
2. automatically convert / rezone ALL the Kg Bharu land as FREEHOLD land for commercial / residential use
3. automatically set the plot ratio for redevelopment to match KLCC or better

The land value in Kg Bharu  will immediately jump to more than RM2000 psf. 

Then let the land owners decide what they want to do with their land. 
They can develop it themselves, they can joint venture, they can sell the land etc. 

The government DO NOT GET INVOLVED. ESPECIALLY KHALID SAMAD. 

The desired end result of what Khalid Samad is suggesting and what I am proposing is the same. Kg Bharu will be redeveloped into a super modern metropolis that can be better than KLCC. And let the Malay landowners of Kg Bharu at last earn the maximum benefits from owning their assets (owning their land). Just like all other human beings.

The only difference is Khalid Samad's method will not work.

My method will. 
Mine is called the free market. 
Leave it to market forces. 

Khalid Samad's method is called the  'aku pun tak tahu entah apa' method. 
It will just not work.