Kampung Sg Baru redevelopment had no consent threshold at approval, says FT minister

• As a result, the project went ahead under the Land Acquisition Act 1970, with 67% of landowners agreeing and the remaining 33% facing compulsory acquisition.
• The approval rate later rose to 72% after the developer introduced the “Pakej Harmoni” compensation package.

KUALA LUMPUR (Oct 9): Minister in the Prime Minister’s Department (Federal Territories) Datuk Seri Dr Zaliha Mustafa told Parliament there was no official consent threshold in place when the Kampung Sungai Baru redevelopment project was approved in 2020.

As a result, the project went ahead under the Land Acquisition Act 1970, with 67% of landowners agreeing and the remaining 33% facing compulsory acquisition.

The approval rate later rose to 72% after the developer introduced the “Pakej Harmoni” compensation package.

Dr Zaliha explained that what actually happened was that the developer submitted an application to the ministry to acquire the land, including the flat units and terrace lots.

The application was then considered at the post-Cabinet meeting of the Ministry of Federal Territories on Sept 9, 2020, which was chaired by the then minister, Tan Sri Annuar Musa.

“The gazetting decision in 2021 was made within just three days. This question should be directed to the minister at that time,” Dr Zaliha said, referring to the swift approval granted during the previous government’s tenure.

Consent policies were only introduced later—50% in 2021, raised to 75% in 2022, and are now applied to Kampong Bharu redevelopment plans.

She also explained that Kampung Sungai Baru is not part of Kampong Bharu's Malay Agricultural Settlement (MAS) and was not gazetted as Malay Reserve land.

The land was created in 1967 after the Klang river realignment by the Selangor government. The Selangor State Development Corporation (PKNS) developed the area to grow Malay settlements in Kuala Lumpur, but it is not officially classified as MAS land or Malay Reserve.

To re-gazette it as Malay Reserve land, all registered owners—including the developer—must agree, she said.

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.