The redevelopment of Kampung Sungai Baru, situated next to Kampung Baru and just minutes away from KLCC, has triggered heated debates in recent years. Residents have raised concerns over compensation, tenure, and the future of their homes. To fully understand the controversy, it is important to first examine the history of Kampung Baru, the land status of Kampung Sungai Baru, and how both areas differ in legal and administrative terms.

The Establishment of Kampung Baru (1899)

Kampung Baru was officially established in 1899 by the British colonial administration through the creation of the Malay Agricultural Settlement (MAS) scheme.

Its main purpose was to preserve Malay agricultural land in the heart of Kuala Lumpur, ensuring Malays could remain in the city despite rapid urbanisation.

The MAS covers about 223 acres within Kuala Lumpur, and its land is legally restricted under the Malay Agricultural Settlement Enactment 1950.

Land within MAS can only be owned and transacted among Malays, with the MAS Board managing and enforcing this restriction.

📖 Reference: Universiti Sains Malaysia (2017), “Kampung Baru: Sejarah, Isu dan Masa Depan.”

Kampung Sungai Baru: Location and Distinction from Kampung Baru

Kampung Sungai Baru is often confused as part of Kampung Baru, but it is not within MAS boundaries.

It lies adjacent to Kampung Baru, near Jalan Raja Muda Abdul Aziz and Jalan Sungai Baru, within the Federal Territory of Kuala Lumpur.

Unlike Kampung Baru (MAS), Kampung Sungai Baru is not Malay Reserved Land. Its land parcels are leasehold titles registered under the Federal Territories Land Office (Pejabat Tanah dan Galian Wilayah Persekutuan, PTGWP).

This means ownership is open to all races, and it is not bound by the MAS restrictions.

Land Title and Tenure in Kampung Sungai Baru

The land in Kampung Sungai Baru consists of:


PKNS flats (medium-cost housing)
Terrace houses (individual titles)
A small portion of utility land (including a TNB substation)

The land titles are leasehold 99 years, most issued during the 1970s when the flats and terraces were first developed.

As of today, residents have roughly 40–50 years of tenure left.
This limited lease period is a key concern: shorter leases typically reduce property values and affect compensation calculations.

Why Kampung Sungai Baru Is Not Malay Reserved Land

Kampung Baru (MAS) land is restricted under the Malay Agricultural Settlement Enactment.
Kampung Sungai Baru, however, is outside this jurisdiction and is treated as standard Federal Territory land.

This is why the government and developers are able to acquire the land using the Land Acquisition Act 1960 (Akta Pengambilan Tanah, APT 1960) without being bound by MAS restrictions.

Understanding Land Titles in Malaysia

When discussing Kampung Baru and Kampung Sungai Baru, it’s essential to understand the different land title categories and what they mean for ownership, transfer, and compensation.

1.

Malay Reserve Land (Tanah Rizab Melayu)

Definition: Land gazetted under the Malay Reservation Enactments (varies by state).
Ownership Restriction: Only Malays can own or transact. Non-Malays cannot acquire, even through inheritance.
Transfer: Restricted — sales, charges, or leases can only be made between Malays.
Valuation Impact: Market value is usually lower than comparable freehold/leasehold, because of ownership restriction.
Example: Parts of Kampung Baru fall under Malay Reserve Land due to its MAS status.

2.

Malay Agricultural Settlement (MAS) Land

Definition: A special category established in 1899 by the British, specifically for Kampung Baru, under the Malay Agricultural Settlement Enactment 1950.
Jurisdiction: Administered by Perbadanan Pembangunan Kampong Bharu (PKB) today.
Ownership Restriction: Only Malays are eligible to own property here, similar to Malay Reserve.
Distinctive Feature: MAS land is unique to Kampung Baru; it doesn’t exist elsewhere in Malaysia.
Example: Most of Kampung Baru proper falls under MAS, but Kampung Sungai Baru lies outside this jurisdiction.

3.

Leasehold Land

Definition: Land held for a fixed period (usually 30, 60, or 99 years). After the lease expires, ownership reverts to the state unless renewed.
Transferability: Can be transferred, charged, or sold (subject to state authority consent).
Valuation Impact: The fewer years left on the lease, the lower the property’s market value. Banks are reluctant to finance when less than 30 years remain.
Example:Kampung Sungai Baru properties (PKNS flats + terrace houses) are mostly 99-year leasehold, issued in the 1970s, with around 40–50 years left today.

4.

Freehold Land

Definition: Ownership is in perpetuity; no expiry.
Transferability: Freely transferable (except if it is also designated Malay Reserve).
Valuation Impact: Highest market demand and value compared to leasehold.
Example: Some parts of Kuala Lumpur outside Kampung Baru are freehold; however, neither Kampung Baru nor Kampung Sungai Baru are freehold areas.

MAS Records and the Boundaries of Kampung Baru

A central point of contention in the redevelopment debate has been whether Kampung Sungai Baru falls under Kampung Baru’s MAS jurisdiction. The Malay Agricultural Settlement (MAS) Board, established in 1899, provides the clearest answer through its role as the custodian of Kampung Baru’s land history.

MAS as Custodian of Land Records

Since 1900, MAS has maintained a Settlement Register documenting every lot within the boundaries of Kampung Baru.
These records include the allocation of land to Malay families, transfers of ownership, subdivisions of lots, and the precise boundary of the MAS-gazetted area.
Registration continued until 1945, ensuring a continuous and verified record of ownership during the formative decades of Kampung Baru.

Crucially, MAS states that its archives are more complete than even official land office files, making the MAS register the authoritative reference point.

“The land in Kampung Baru was specifically allocated to the Malays and is recorded in the settlement register. This registration began in 1900 and continued until the last registration in 1945. We have documented this, and even the land office does not have these records.” – Shamsuri Suradi, Honorary Secretary of MAS

Why Kampung Sungai Baru is Not Part of Kampung Baru

By relying on these official registers, MAS has been able to draw a clear distinction between land within Kampung Baru and land outside it.
MAS has publicly clarified that Kampung Sungai Baru is not part of Kampung Baru, as it does not appear in the MAS settlement register from 1900–1945.

This makes it explicit that Kampung Sungai Baru lies outside the MAS-gazetted boundary, meaning it is not subject to the restrictions and protections applied to Kampung Baru lands.

The Kampung Sungai Baru Redevelopment Project

Initiated in 2016, the redevelopment is a joint effort between:

328 property owners (64 terrace lot owners and 264 PKNS flat unit owners)
Ritzy Gloss Sdn. Bhd. (the appointed developer)
Perbadanan Kampong Bharu (PKB) acting as facilitator

Initially, 219 owners (66.77%) agreed, while the remaining disagreed.
Over time, agreement increased to 88.72% of owners (291 units/lots) supporting redevelopment.
The holdouts are primarily 37 terrace house owners who rejected both the joint-venture offer and the cash compensation.

Legal Framework of the Land Acquisition

The government exercised its powers under the Land Acquisition Act 1960 (APT 1960).
Relevant steps include:

Section 4 Gazette Notification (18 June 2021) – intention to acquire.
Section 8 Gazette Notification (21 June 2021) – official acquisition declaration.

Under APT 1960, the state can compulsorily acquire land for redevelopment if deemed in the public interest.
Compensation must be paid, but disputes often arise over valuation.

Compensation and Resident Concerns

Compensation Amounts
Flat owners were offered replacement units and transition housing (Residensi Kerinchi flats as temporary homes).
Terrace house owners were offered packages estimated between RM2.7 million to RM4 million, depending on land size.
Many owners argue these offers do not reflect actual market value given Sungai Baru’s prime location near KLCC.

Tenure Concerns
Owners fear the remaining 40–50 years lease affects valuation, leading to lower compensation compared to freehold land.

Community Concerns
While Sungai Baru is not under MAS, it has long been a Malay-majority settlement. Residents worry about losing their identity and community bonds after redevelopment.

The Bigger Picture: Urban Redevelopment in Kuala Lumpur

The Sungai Baru project is aligned with:
Kuala Lumpur Structure Plan 2020
Kampong Bharu Redevelopment Masterplan 2040
The government aims to modernise older settlements, improve housing safety, and unlock land value near the city centre.
However, striking a balance between development and fair compensation remains a challenge.

📌 FAQ: Kampung Sungai Baru Redevelopment

1. Is Kampung Sungai Baru part of Kampung Baru?
No. Kampung Sungai Baru is outside the MAS boundary. MAS records from 1900–1945 confirm that Sungai Baru was never registered as part of Kampung Baru.

2. What is the land title of Kampung Sungai Baru?
Kampung Sungai Baru is 99-year leasehold land, mostly issued in the 1970s. It is not Malay Reserved Land and not governed by MAS restrictions.

3. How many years are left on the leasehold titles?
As of today, owners have about 40–50 years left on their leases, depending on when the original titles were issued.

4. Why does the leasehold status matter for compensation?
Shorter remaining lease periods typically reduce property valuation, making banks less willing to finance and affecting compensation under the Land Acquisition Act.

5. How is Malay Agricultural Settlement (MAS) land different from Kampung Sungai Baru land?
MAS land (Kampung Baru) → restricted to Malay ownership under the MAS Enactment 1950.
Sungai Baru land → standard Federal Territory leasehold, open to all races, no MAS restrictions.

6. Who manages Kampung Baru and Kampung Sungai Baru?
Kampung Baru → administered by the Malay Agricultural Settlement Board (MAS), established in 1899, with land records kept since 1900.
Kampung Sungai Baru → administered by the Federal Territories Land Office (PTGWP).

7. What is the role of Perbadanan Kampong Bharu (PKB)?
PKB was established to facilitate redevelopment in the broader Kampung Baru area. In the Sungai Baru case, PKB acted as facilitator between owners, developer, and the government.

8. Who is the developer for the Sungai Baru project?
The appointed developer is Ritzy Gloss Sdn. Bhd.

9. What compensation was offered to residents?
PKNS flat owners → offered replacement units and temporary housing at Residensi Kerinchi.
Terrace house owners → packages estimated between RM2.7m to RM4m, depending on lot size.

10. Why are some residents unhappy with the compensation?
Residents argue that compensation does not reflect the true market value of Sungai Baru’s prime location near KLCC and that leasehold tenure was undervalued.

11. What legal process was used to acquire the land?
The government invoked the Land Acquisition Act 1960 (Akta Pengambilan Tanah, APT 1960), publishing Section 4 and Section 8 gazettes in June 2021.

12. What happens if owners reject compensation?
Under APT 1960, land can still be acquired in the public interest, but disputes over valuation may be settled in court.

13. How does this compare with other government acquisitions (e.g., MRT, LRT)?
Similar compulsory acquisitions occurred during MRT and LRT projects, where private and residential land was acquired to enable infrastructure works. Compensation was paid under APT 1960, but disputes over valuation were common.

14. What was Kampung Sungai Baru before redevelopment?
The area consisted of PKNS flats built in the 1970s, terrace houses, and small utility lots. Before the flats, the land was a low-density settlement of traditional houses.

15. What is the future plan for Sungai Baru?
The redevelopment is part of the Kampong Bharu Redevelopment Masterplan 2040, aiming to modernise the area, increase housing supply, and integrate it with Kuala Lumpur’s urban core.