Thursday 28 Mar 2024
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KAJANG (June 25): The Pakatan Harapan-led government will review the approvals-in-principle granted to several property developers awarded by the previous Barisan Nasional administration on direct negotiation basis to develop three parcels of land in the Klang Valley "worth hundreds of millions of ringgit", said Transport Minister Anthony Loke Siew Fook. 

"Previously, the Cabinet has given the approval-in-principle for the lands in Pudu, Batu 3 in Shah Alam and Bangsar. All of these lands were owned by the Railway Assets Corp (RAC)," Loke told reporters after a two-hour meeting among the Transport Ministry, RAC and Keretapi Tanah Melayu Bhd (KTMB) here today.

Loke declined to name the property developers, but said the government will abolish the practice of direct negotiations given to develop lands owned by government agencies such as the RAC. 

"So far, the government agencies (RAC) has not inked any agreement with any parties, but we really abhor the direct negotiation idea and all projects must be awarded on open tender and merit basis," he said. 

According to Loke, projects awarded under the open tender basis will attract a wider pool of interested parties, which will result in high returns. 

"The high returns can be used by the RAC to reinvest in purchasing railway assets, such as rolling stocks," he added. 

Loke said he has instructed the RAC to prepare a detailed list of lands owned by the agency that have a potential to be developed for a transit-oriented development, as well as affordable housing.

"We want to offer affordable developments that will enable those on the outskirts of the city centre to stay as close to the stations as possible," he said. 

"The direction is that we want to optimise and maximise the lands under RAC. These lands are actually quite prime, with a high potential to be developed," Loke added.

Loke said the RAC, which was incorporated under the Railway Act 1991, owns 31,712 acres of lands in Peninsular Malaysia.

On how soon can the RAC monetise the lands, Loke said: "It will depend on how soon can the the agency call for the open tender and how fast the successful bidders can commit to launch the project."

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