Methods proposed to develop Kampung Baru

It is suggested that a body be set up to handle the planning, development and management of Kampung Baru. The patterns proposed are:

  • Kuala Lumpur City Hall (DBKL) to establish Kampung Baru Development Corporation whose chairman will be appointed by the Federal Territories Minister at the approval of the Prime Minister;
  • To establish the Kampung Baru Special Development Committee that functions as mediator between developers and DBKL’s technical departments; and
  • To encourage involvement of landowners and private corporations to develop zones identified.

The development mechanism involves two approaches:

  • Land Ownership Preservation areas (Kawasan Pengekalan Pemilikan Tanah)
  • Land Retrieval areas (Kawasan Peng-ambilan Balik Tanah)

Implementation methods for Land Ownership Preservation areas are:

Inside Malay Agriculture Settlement (MAS):

  • Development in accordance to lots – applied to areas not involved in the planned development;
  • Joint development of land (Pembang-unan Tanah Bersepakat) – owners join force to develop their land and development costs to be shared; and
  • Transfer of Development Right – landowners to sell development rights to developers.

Outside MAS:

  • Real Estate Investment Trust (REIT) – a trust fund that holds/invests in rental properties, it is required to distribute most of its profit as dividend to its holders; and
  • Joint development of land.
Implementation methods for Land Ret-rieval areas are:

Inside MAS:

  • Comprehensive development – involves redevelopment in parts of MAS that indiscriminate, inconvenient and problematic; and
  • Acquisition - the plan has it that according to Section 3 (1)(b) of Land Acquisition Act 1960, “the state authority may acquire any land which is needed by any person or corporation for any purpose which in the opinion of the state authority is beneficial to the economic development of Malaysia.

Outside MAS:

  • Comprehensive development – involves Chow Kit market and KLCC surrounding areas deemed as the “backyard” to Kuala Lumpur's development; and
  • Project cost is estimated between RM15.6bil and RM18bil while the financing of the project is through equity and commercial loan.

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