PUTRAJAYA, April 22 — The Federal Territories Ministry said it needs between RM6 billion and RM10 billion to take over land in Kampung Baru to develop the Malay enclave.
Minister Khalid Samad explained that the ministry is looking at ways such as issuing municipal bonds, or even borrowing from banks as a means to raise funds for the complicated development of Kampung Baru that faces multiple ownership of land titles.
Khalid also explained that the people in Kampung Baru preferred to have the government, rather than developers, buy out their land.
“This is something in the process, but for the people in Kampung Baru they prefer if the government were to take over their land compared to a developer because once they take over, they can change (the terms) according to them.
“For instance, selling the property to non-Malays despite the original planning to maintain Kampung Baru as a modern Malay city. So it is better that this remains a government initiative,” he said in a press conference here today.
Khalid said the ministry prefers to develop Kampung Baru as a township rather than allow modular or isolated construction of certain properties done by private developers.
“This would ensure the construction of Kampung Baru is done well,” he said.
As a means to facilitate the development of Kampung Baru, the Kg Baru Development Corp (KBCD) was established in 2012 and the Kampung Baru Detailed Development Master Plan (PITPKB) was launched in 2015, but no major changes had occurred since then.
Reportedly KBCD has to deal with over 5,000 landowners involving 1,355 lots while dealing with land ownership, titles and even land valuation issues.
Khalid, explained, that they intend to find the right formula to appease landowners, however, he also assured that Kampung Baru will remain to be a Malay enclave and intend to propel development into the ageing neighbourhood as a modern “Malay City”.