SHAH ALAM, Oct 4 — A property analyst today suggested giving shares in development projects to Kampung Baru landowners, as a solution to help allay their fears of losing their assets in one of the most valued swathes of heritage land within Kuala Lumpur’s Golden Triangle.
In a Sinar Harian forum, Datuk Ishak Ismail said that this is because cash compensation may diminish in about four years, while share ownerships can help the landowners receive investment returns for a much longer time.
“That is actually better. If we accept cash, the cash may perhaps finish in three or four years,” he said, pointing to the then Felda LB Johnson (now Kampung LB Johnson) land reclamation issue as a classic example, drawing parallel to the situation in Kampung Baru.
“So I see it from a strategic investment angle, for the future generation.
“In fact, if people in Kampung Baru, owners of Kampung Baru want to also be involved in giving views and all, then they can be offered shares in the development of Kampung Baru.
“Which in the end will see the returns going to them, and part of it can be seen as an asset which they can perhaps own,” Ishak added.
Last month, the government announced that it has offered Kampung Baru landowners the maximum value of RM850 per square feet for their land, which amounts to over RM6 million for each available plot said to average around 8,000 square feet.
Putrajaya said landowners with properties on the land plots will also be paid an additional amount based on the value of the property.
Federal Territories Minister Khalid Samad had at the time, in a townhall session with Kampung Baru residents, said that the amount offered was based on the best value of the land considering its status as Malay Agriculture Land.
Land with such status is often capped at a much lower price even if the location is deemed premium.
However, land and property consultants said land where the KLCC Twin Towers sits is worth at least RM3,000 per square feet. Kampung Baru sits adjacent to the towers.
The land that Kampung Baru sits on was initially designated for plantations but was later re-purposed as a social project aimed at balancing the city’s racial composition, after the deadly 1969 race riots.
This is the first offer that the federal government has laid out in real numbers since the idea to redevelop the 220-acre land was first mooted in the 1980s.
Previous administrations’ attempts at convincing residents to sell their land have either stalled or failed, often due to both parties being unable to agree on the right price.
