Govt says residents, not authorities, chose Kampung Sg Baru developer

• Minister in the Prime Minister’s Department (Federal Territories) Datuk Seri Dr Zaliha Mustafa said residents themselves agreed to redevelop the area, selected the developer, and signed a deal without government interference.

KUALA LUMPUR (Oct 9): The government on Thursday said it had no role in choosing the developer for the Kampung Sungai Baru redevelopment project—the decision was made entirely by the residents, Parliament was told.

Minister in the Prime Minister’s Department (Federal Territories) Datuk Seri Dr Zaliha Mustafa (pictured) said residents themselves agreed to redevelop the area, selected the developer, and signed a deal without government interference.

The Kampung Sungai Baru Property Owners’ Welfare Association, formed in 2010, coordinated the redevelopment of 328 properties. It initially signed a memorandum of understanding with Ritzy Gloss Sdn Bhd, which was later taken over by Suez Capital Sdn Bhd in 2016. She also confirmed that Suez Capital is a Malaysian company, not Singapore-based.

Compensation completed, disputes can go to court

Dr Zaliha said all compensation to residents who disagreed with the project was paid between February 2022 and January 2023, refuting claims that some owners were still unpaid.

Supporters of the project received replacement units and additional benefits like moving allowances and rental assistance. Flat owners were offered units worth RM884,000 to RM1 million, and terrace house owners got three to nine replacement units worth RM2.7 million to RM8.1 million, based on future valuation.

Those who opted out received cash compensation, ranging from RM198,000 to RM350,000 for flats and RM800,000 to RM2.9 million for terrace houses.

According to the minister, these values were determined by the Valuation and Property Services Department and included allowances for relocation, rental and loss of income.

She acknowledged that some residents were unhappy with the compensation, but she said they can challenge it in court. The court’s decision will be final, and both sides must respect it.

Dr Zaliha urged all parties to stop politicising the issue and to support efforts to revitalise the area while respecting its historical identity.

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.