KUALA LUMPUR, Nov 18 — Poor security, weak financial management, and reduced responsibilities with the increase of high-rise buildings as well as shrinking landed properties were some of the complaints raised by residents in the leafy Seputeh suburb here today as part of their protest against an impending hike in land valuation by the KL City Hall (DBKL) that could shoot up their annual property assessment tax rate by up to 250 per cent.

Some 200 residents banded together today in rally in Sri Petaling neighbourhood to denounce what they called an “unrealistic” and “inconsistent” valuation on their land, demanding DBKL justify its decision for an increase.

The residents also demanded City Hall explain its how it came up with the 6 per cent assessment rate for residential properties, and 12 per cent for commercial.

Chairman of the Seri Petaling Residents’ Association (RA) Tan Tai Tong, who organised the rally, said residents were not angry that they would have to pay a higher assessment rate but were more upset that DBKL’s increase was not backed by any visible improvement to public amenities and services. 

“We want to take the lead, we hope other areas in KL will come up and let the government know our feelings.

“We’re not trying to stop them totally but gradually increase the price.

“They have to do something to show us, make the environment better before increasing my price,” he told reporters at a coffee shop in Seri Petaling here.

Over the weekend, Federal Territories Minister Datuk Seri Tengku Adnan Tengku Mansor stressed that the recent notice issued by DBKL to city folk was only a suggested rate and that the final decision will be made after obtaining feedback from residents before December 17 and discussing the matter with all the 13 Federal Territory people’s representatives on November 21.

Tan said DBKL should be transparent and reveal the expected income from the hike, as well as a breakdown on how the city council planned to use the additional revenue.

He summarised the sentiments of several other RA chairmen who spoke today, that residents have been compelled to hire private security guards to protect their neighbourhoods, which he noted was the government’s duty.

“There are 6,000 landed properties in Seri Petaling and 80 per cent are covered by our own security services, paid out of our own pockets. It costs about RM150,000 a month, touching RM2 million a year.

“These are all the burden for residents and yet DBKL don’t consider all these burdens, they don’t think whether income has increased. Businesses not good how to increase the income?” Tan asked, adding that they started hiring security firms since 2004.

Bukit OUG RA chairman Charles Ho said he has received a lot of objections and complaints about the hike as most of the residents there are already in their “twilight years”, and have no source of income.

“The DBKL does not seem to have any feelings for the people, they are trying to use us as their ATM and I think we should all object to this,” he said, referring to the automated teller machines dispensing cash.

He added that he is collecting signatures to petition against the hike, which will be handed over to Seputeh MP Teresa Kok, and submitted to the city council.

Tan Tai Tong said residents were more upset that DBKL's increase was not backed by any visible improvement to public amenities and services.

One of the residents from Taman Bukit Desa, B.H. Yap, said the matter “so serious and so disturbing” that he needed to speak out on behalf of his neighbours.

He pointed out that getting rentals in his neighbourhood is a struggle.

“The other thing is on rental, majority stay in the property they own, but if you don’t stay on your own, you try to rent out your property, it is a struggle, a lot of them can’t even rent out their properties unless you put in additional money to make it more beautiful and then it becomes more competitive.

“Those cost-added is not accounted for and even then you can rent it out you are very lucky, and it is rented out at a value that for most people who are trying to invest, for them it is a struggle trying to service a loan with those rental,” Yap said.

He added that DBKL was satisfied with the current rate for 21 years because of the growth in KL, with “so many tall rise buildings, they are collecting good money”.

“If ever DBKL say they are struggling to get more revenue, they should look at how to manage cost, you should look at all the leakages,” he said, giving examples of how some contractors failed to perform their duty, and additional contractors would be hired to do the work.

“I think this whole thing, the increase, is really lacking in professionalism, lacking in finding out actual position and also I want to mention that we are all struggling in KL to live, a lot of us are those people who just started a home, trying to service a loan, they are struggling, a lot of us like me are pensioners who invested in maybe one extra property, so you are using the poor rental that we collect to support our continuous years, we are all struggling in KL.

“I would hope that by us voicing this today, plus our political representative here, we can make these points clear to the DBKL look at it, constructively, professionally, and in a realistic manner, not just simply sweep it across the board,” Yap said.

The constituency representative Kok whose constituency has about 20,000 households, pointed out that DBKL has actually increased revenue in collection in terms of development charges, in terms of other commercial properties collection.

“In fact, they have increased their revenue, they shouldn’t tax on the ordinary people any more, I think this is the point that all the RA chairmen try to express their dissatisfaction over the increase of assessment rate.

“As the local government, we all know that people are suffering now, we have to pay all the high rates, sugar subsidies have been removed and GST is coming and petrol price have been going up and traffic summons everywhere.

“We would like to propose to DBKL, they can argue over the double of our properties and so on but the proposed rate should not remain at 6 per cent, they can reduce from 6 per cent to 3 per cent or even lower than this, it will reduce the burden faced by us now,” she said.

Residents from Jinjang New Village, Kepong and Brickfield have already voiced their dissatisfaction over the matter.

Residents in the upscale Bangsar suburb scheduled to meet later today to do the same.

The National House Buyers’ Association had also asked DBKL to reconsider the assessment rate, saying the market value of the properties does not benefit the homeowners, unless they sell.