KUALA LUMPUR – More than 100 home owners living a stone’s throw from the iconic Petronas Twin Towers are fighting to get fairer compensation from a project developer that plans to turn their shared plot into a luxury condominium.

       These residents of the small village of Kampung Sungai Baru, a part of Kuala Lumpur’s historic Kampung Baru Malay enclave, have been served eviction notices after little-known property developer Ritzy Gloss bought the 9ha leasehold plot of land from the government.

       The government acquired the land in June 2021, after the developer made an application to do so but could not come to an agreement over the holdouts.

       Under the 1960 Land Acquisition Act, the government can acquire land for public purposes or economic development in exchange for adequate compensation.

       Details of the sale have not been made public, but the project had stalled since its start in 2016 because of the dissenting home owners.

       Ritzy Gloss’ original offer of compensation to home owners was a unit in the new development.

       A total of 219 home owners, comprising 192 flat owners and 27 terraced house owners, have accepted the compensation offered, while 109, consisting of 72 flat owners and 37 terraced house owners, have not.

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       Now, the 109 home owners opposing the deal say they are being offered compensation that is very much lower in value than what their location should fetch.

       They say they have appealed to the federal government, but have not received a consistent response. One reason is that four different prime ministers have been in power over the last six years.

       “We want fair compensation. We are living in the KL city centre, not in the boondocks,” said Mr Johari Zakaria, the spokesman for the Kampung Sungai Baru action committee formed by the dissenting home owners.

       Kampung Sungai Baru is an area within the Kampung Baru enclave, the biggest pocket of land still owned by Malays in downtown Kuala Lumpur.

       Those against the redevelopment have been offered RM450 (S$130) to RM600 per sq ft for their homes. But they say that, in comparison, units in the swanky condominiums just across the river and nearer the Petronas Twin Towers are being sold for at least RM1,500 per sq ft.

       “The land is not being taken for a government project such as a hospital or an MRT station; it is being taken for a high-end condo. We are being victimised,” Mr Johari told The Straits Times.

       On July 25 and 26, Ritzy Gloss filed an application to seek a court order to evict the residents who have not moved out, said Mr Shahrin Satheer, a lawyer representing some 30 of the residents affected.

       He said the electricity and water supply to the area were cut in June, but the electricity supply was restarted after residents complained.

       Ritzy Gloss did not reply to queries made through phone calls and e-mail.

       The Kampung Sungai Baru village comprises 264 flats in eight four-storey walk-up blocks and 98 terraced houses.

       A visit to the blocks of flats by ST on July 23 found them to be mostly abandoned and crumbling, while many of the terraced houses were still occupied.

       The Twin Towers, located less than 1km away, form a giant backdrop to the village, along with other shiny, tall office and residential towers. The Kampung Baru LRT station is located just a stop away from one of the rail line’s busiest stations, the KLCC LRT station under the Twin Towers.

       The project represents more than a land sale in downtown KL, as any matter involving the 125-year-old Kampung Baru tends to stoke heated discussion among Malaysia’s Malay majority.

       The enclave covering 90ha, slightly larger than Singapore’s Botanic Gardens, is viewed as the heartland for KL Malays, and drastic changes to the district are frowned upon.

       Most of Kampung Baru is designated Malay Reserve Land, which means plots can be sold only to other Malays. Kampung Sungai Baru does not share this designation, but all the landowners are Malays.

       The luxury condominium project for Kampung Sungai Baru is the latest in a series of plans announced for the wider enclave.

       Numerous efforts to redevelop the larger Kampung Baru area have failed, mostly due to difficulty in getting landowners’ consent.

       The enclave today has not changed much from decades ago, with its old homes on small plots of land, dilapidated flats and narrow lanes lined with roadside restaurants.

       The push to redevelop Kampung Sungai Baru, although years in the making, is proving to be a fresh headache for Prime Minister Anwar Ibrahim as he works to project a pro-Malay image for his 20-month-old multiracial ruling coalition.

       Residents said they were served notices that their land would be acquired during the Covid-19 lockdown in 2021, and they could not lodge protests as government offices were shut.

       Most of those who agreed to the compensation originally were flat owners, who viewed the luxury condo units offered to them as an upgrade from their ageing homes.

       But the majority of terraced house owners rejected the plan, believing their homes were more valuable than the offered compensation. They were also worried that the planned development, by a little-known developer, would not materialise, leaving them with nothing.

       Former Cabinet minister Khalid Samad urged the government to review the compensation offered.

       “Home owners have the right to get a fair compensation,” he told reporters on July 15.

       Owners who agreed to the compensation will get property in the planned luxury condominium, estimated to be worth between RM1,500 and RM1,800 per sq ft, or around RM1 million per unit, he said. But the home owners who opposed the deal are being offered only RM450 to RM600 per sq ft based on the size of their current homes, Mr Khalid said.

       “Why must they accept such a low valuation? Are they being punished? Is the government punishing those who disagree with the developer?” he asked.

       The Minister in charge of the Federal Territories, Dr Zaliha Mustafa, has said that flat owners would receive compensation of between RM198,000 and RM350,000, while terraced house owners would get between RM800,000 and RM2.9 million.

       But Mr Khalid countered that those getting RM198,000 would not be able to buy a similar apartment anywhere in Kuala Lumpur and that the money would have to be split among family members.

       Mr Shahrin’s clients are planning to challenge the property valuation in court. “It is premature for the developer to seek eviction of the residents at this juncture,” he told ST.

       Dr Zaliha said on July 10 that the redevelopment of Kampung Sungai Baru would start by end-2024 once a development order has been approved by Kuala Lumpur City Hall. Her ministry oversees projects in the KL federal territory, including Kampung Baru.

       “This redevelopment project requires decisive political will and objective decision-making in order to be resolved, and not populist decisions which were put forward before.”

       Residents opposing the deal said that the then government in 2020 had offered higher compensation as part of an earlier grand plan to modernise Kampung Baru as a whole, and they met with Dr Zaliha on May 27 to ask for a re-evaluation of the land price and an out-of-court settlement.

       “We should be getting at least RM1,500 per sq ft, but they are offering RM450. I don’t want to sell, but the government is forcing me,” said Madam Zainab Alias, 64, a third-generation resident of Kampung Sungai Baru.