A LACK of coordination between land alienation and development approvals is exposing the local authority to potential legal action and compensation claims, says Hannah Yeoh.
The Minister in the Prime Minister’s Department (Federal Territories) highlighted a systemic gap where land is sold before owners apply for development permits, often resulting in projects that conflict with the city’s established zoning laws.
“Under the current framework, once a purchaser pays the land premium and secures the title, they hold the rights to develop the land,” she said.
If the intended use contradicts the Kuala Lumpur City Plan (KLCP), Kuala Lumpur City Hall (DBKL) finds itself in a precarious position.
“If DBKL subsequently refuses to grant a Development Order (DO), DBKL may be liable to compensate the owner for the loss of development rights,” she told StarMetro in an exclusive interview.
This risk is codified under Section 46 of the Federal Territory (Planning) Act 1982.
The Act states that if a local authority refuses planning permission to the extent that the land becomes “incapable of reasonably beneficial use,” the landowner has the right to serve a notice requiring the authority to purchase the land from them.
To mitigate this, Yeoh said the Federal Territories Land Works Committee must ensure land alienation aligned strictly with gazetted zoning.
Despite the push for consistency, she noted that the local plan served as a guide and was not entirely static.
Amendments may be justified for essential public works, such as flood mitigation, provided that public consultations are conducted under Rule 3 of the Act, she said.
“If there is a need for flood mitigation in an area and you already have no other land to be used, I believe this could justify a change to the local plan, given that the people’s voices are included in the process,” she added.
Yeoh said the Kuala Lumpur mayor also retained the authority to curb development intensity based on traffic studies, even if a project aligned with the local plan, to ensure that road infrastructure was not overwhelmed.
The minister’s remarks followed a Public Accounts Committee (PAC) report tabled last August that recommended 11 reforms to address transparency and accountability in Kuala Lumpur’s land deals.
The report previously uncovered issues regarding unchecked approvals and the sale of public land below market value.
Yeoh expressed her support for those recommendations.
“I have read the report and I will discuss it with the Prime Minister to see how we can work on the PAC’s concerns,” she said.
Regarding the 139 sites identified for redevelopment under the Kuala Lumpur Local Plan 2040, Yeoh emphasised the need to balance modern community requirements with infrastructure capacity.
She said as demographics shifted, the types of facilities required – such as senior citizen daycare centres instead of kindergartens – must be reflected in redevelopment projects.
“The objective remains to provide better housing while ensuring the evolving needs of the community are met without overloading existing infrastructure,” she added.
