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KUALA LUMPUR (Aug 14): A certified valuer told the High Court on Friday that the Valuation and Property Services Department's assessment of the 263.272-acre ‘Duta enclave’ land — originally owned by Semantan Estate (1952) Sdn Bhd — was fundamentally flawed.
Testifying as the first witness in the Semantan Estate’s compensation according to the 1956 market rate following the government’s acquisition, Foo Gee Jen, 63, argued that the government’s reliance on historical reports by AA Wragg and AIG Harding should be disregarded, as the Kenny Hills is in the immediate proximity to the subject Semantan Estate land in 1956.
“This shows that the area surrounding the subject property was already developed at that time (1956) and is therefore a consideration in valuing the development potential of the subject property,” Foo testified.
He added the government valuer's statements lacked independent verification and should not be carried or given any weight in the ongoing proceedings.
Foo also highlighted a logical contradiction in the government's stance, in that it cited Wragg's opinion that the Semantan land lacked "immediate potential" yet at the same time it identified and acquired that exact land to build a diplomatic enclave, claiming the remaining adjacent land would enjoy benefits of rebranding from a rubber estate to an elite area.
Wragg was Malaysia's first chief valuer who had laid the groundwork for the nation's property valuation profession in the mid-1950s. His appraisal, known as the Wragg Report, remains a key historical reference for valuers.
Selangor vs KL boundary dispute
When the land was acquired by the government in December 1956, it was a rubber estate situated in Selangor rather than the Kuala Lumpur municipality, with pockets of development in the surrounding area, namely Kenny Hills — now known as Bukit Tunku.
The government argued that because the land fell within Selangor, its valuation should be lower, and that no compensation was warranted or severance or "injurious affection" as the municipal boundaries remained unchanged.
Foo rejected this argument. “The government valuer’s contention — that because the Kuala Lumpur boundary did not shift due to the wrongful acquisition [so] the status quo of the remaining land remained unchanged — is an incorrect interpretation,” he said.
Answering questions from Semantan's counsel Ira Biswas, Foo stressed that assigning a lower value simply because a portion of the land fell within Selangor instead of Kuala Lumpur was improper.
“It is not an accepted valuation practice. There is no valuation standard that requires such a method of valuation,” Foo said.
Best comparable land values
In his report presented to High Court judge Roslan Mat Nor, Foo submitted that the best comparable land sales in the surrounding area during that period placed the market value of the plot at between RM5,879 and RM6,000 per acre.
Simple calculations based on the plot's size of 263.272 acres show that this amounts to between RM1.547 million and RM1.579 million.
Semantan Estate was previously compensated at RM5,282 per acre by the Selangor government for the plot. It had demanded RM13,000 per acre during land inquiry hearings at the time, before accepting the initial payout under protest. In the end, they were awarded a total of RM1.32 million in 1956, which the court had deemed inadequate.
The courts have since ruled the pre-Merdeka compulsory land acquisition as unlawful and amounted to trespass, and ordered appropriate compensation for Semantan Estate based on 1956 market rates, as well as mesne profit (damages for unlawful occupation).
The mesne profit is being assessed in a separate High Court proceeding before judge Datuk Ahmad Shahrir Mohd Salleh — now a Court of Appeal judge. The parties are currently in mediation. The estate is claiming between RM3.1 billion and RM13 billion, while the government has offered RM290 million.
Besides Ira, Semantan Estate, which is under voluntary liquidation, was represented by Janet Chai Pei Ying and Alexie Ng Ying Ching of Messrs Chooi & Co.
Senior federal counsel Nurhafizza Azizan, who appeared for the government, will cross-examine Foo when trial resumes on Aug 21.
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