KBDC may undergo another restructuring

No update on Kampung Baru redevelopment plan as CEO is still adapting to his new role

by NUR HANANI AZMAN/ pic by MUHD AMIN NAHARUL

THE board of Kampung Baru Development Corp (KBDC) may undergo another round of restructuring following the change of government in March.

The last time KBDC underwent a restructuring process was in October 2018.

Lokman Omar was recently appointed as KBDC CEO on June 1.

KBDC chairman Tan Sri Ambrin Buang said while he has not met with Lokman yet, the corporation is also currently waiting for a clear direction from Federal Territories (FT) Minister Tan Sri Annuar Musa.

Ambrin does not dismiss the possibility that there may also be a reshuffle at the board level.

“There is a potential (of change) since there is a change of government. I will check with the CEO when we meet,” he told The Malaysian Reserve (TMR).

On June 2, KBDC’s Facebook page showed a photo of Lokman getting a briefing from its management and corporate communications director Roslan Mohammad, and development and economic planning director Fadzli Zubi.

A check by TMR with KBDC’s office secretary found that Lokman is still adapting to his new role, thus he is not ready to give any update on the Kampung Baru redevelopment plan yet.

On April 3, Annuar reportedly said there is no funding to finance Kampung Baru’s mega redevelopment plans.

Annuar said close to RM7 billion is needed but at this point it has not been decided on how it would be sourced.

“Even if all landowners agree to the government’s recent bid to buy out their land, this remains a fundamental concern.

“There is no allocation or funding for the en-masse buyout of Kampung Baru land as of now. And even if everyone agrees to it, who will be the developers?” he said in his daily update on Facebook recently.

It was reported that 60% of 5,359 landowners had said yes to the government buyout of RM1,000/sq ft (a payout involving a maximum of RM850 in cash while the remaining RM150 is to be delivered in shares under a special purpose vehicle).

Former FT Minister Khalid Abdul Samad (picture) has expressed his disappointment towards his successor Annuar on the lack of funding for the Kampung Baru development plan.

“The Pakatan Harapan (PH) government had previously completed more than half of the development work and more than 60% of the owners agreed to sell their land,” he told reporters last month.

The 120-year-old Kampung Baru was gazetted on Jan 12, 1900, and administrated under the Malay Agricultural Settlement.

Of the total area, 80ha have been earmarked for redevelopment. Of that 80ha, 62ha are privately owned.

Established in April 2012, KBDC was entrusted as the coordinator, facilitator and prime mover to transform the heritage village into a modern “21st-century Kampung Melayu”.

The 20-year project, which sits on a 121.41ha plot of land, includes the development of 17,500 residential units to accommodate up to 77,000 people with an estimated cost of RM43 billion.

It was expected to be completed by 2035.