Share
- Minister in the Prime Minister’s Department (Federal Territories) Datuk Seri Dr Zaliha Mustafa said the session will provide lawmakers with a more detailed explanation of the long-standing dispute surrounding the project facing resistance from some residents and delays spanning nearly a decade.
KUALA LUMPUR (Oct 6): A special ministerial briefing on the redevelopment of Kampung Sungai Baru will be held in the Dewan Rakyat on Thursday, Oct 9.
Minister in the Prime Minister’s Department (Federal Territories) Datuk Seri Dr Zaliha Mustafa said the session will provide lawmakers with a more detailed explanation of the long-standing dispute surrounding the project facing resistance from some residents and delays spanning nearly a decade.
She stressed that the redevelopment will preserve the Malay identity and cultural continuity of the area while facilitating urban renewal in Kuala Lumpur.
“We are actively exploring plans to ensure this balance and are in discussions with both developers and government-linked companies such as UDA Holdings," Zaliha said during the Dewan Rakyat’s question-and-answer session on Monday.
The site development may also serve as a catalyst for Kuala Lumpur’s urban development, she said.
Delays and chaos
Located near the Kuala Lumpur city centre, the 3.2-hectare Kampung Sungai Baru redevelopment project has been delayed for nine years.
Negotiations with residents began in 2016 and continued until 2020, followed by land acquisition and approvals in 2021. The plan involves 328 new residential units, replacing 67 terraced houses and 14 apartment blocks.
Tension flared when a minority of residents rejected the joint-venture agreement and compensation terms offered by the developer. In 2021, the Perikatan Nasional administration invoked the Land Acquisition Act 1960 to take possession of the land and hand it to the developer.
Attempts by authorities to enforce the vacant possession order on Sept 11 turned chaotic as residents refused to vacate, leading to a scuffle that injured Dang Wangi police chief Assistant Commissioner Sulizmie Affendy Sulaiman.
Zaliha said on Monday that discussions are ongoing between stakeholders, including developers, landowners, and federal agencies, to identify potential collaborations that could move the project forward in a fair and transparent manner.
She also took the opportunity to clarify the frequent confusion between Kampong Bharu and Malay reserve land, noting that the former is not technically gazetted as Malay reserve land.
Kampong Bharu was gazetted as a Malay agricultural settlement on Jan 12, 1900 under Section 6 of the 1897 Land Enactment through Rules 1950, and not governed by the Malay Reservation Enactment, Zaliha said.
In contrast, Malay reserve land in Kuala Lumpur is governed by the Malay Reservation Enactment, applicable under the Federal Territory (Modification of the Malay Reservation Enactment) Order 1974, which limits ownership, transfer, and leasing strictly to Malays.
Redevelopment challenges
Zaliha was responding to Datuk Azman Nasrudin (Perikatan Nasional-Padang Serai), who asked why redevelopment of Malay reserve areas faces persistent challenges.
She said such projects are often hindered by complex ownership structures, limited market value, and heritage considerations.
Many parcels of Malay reserve land are inherited properties with multiple co-owners—sometimes up to hundreds within a single lot. In one case, a single 8,700-sq-ft lot has 256 registered co-owners and even a single objection can halt redevelopment, Zaliha highlighted.
Further, market limitations from ownership restrictions preventing sale to non-Malays also reduce investor interest despite many Malay reserve lands being in prime urban locations such as Sungai Penchala, she noted.
“The high development costs, combined with limited resale markets, make it challenging to attract developers,” Zaliha added.
As Penang girds itself towards the last lap of its Penang2030 vision, check out how the residential segment is keeping pace in EdgeProp’s special report: PENANG Investing Towards 2030.
