Selangor Menteri Besar Datuk Seri Amirudin Shari has moved to dispel misinformation surrounding a 168-acre plot of land in Permatang Kumbang, Puchong city centre, clarifying that the land is not a permanent forest reserve and that its sale was conducted transparently through an open tender process.
Addressing representatives from fourteen residents’ associations and Kinrara assemblyman Ng Sze Han at a specially convened meeting, Amirudin said the land located near the Ayer Hitam Forest Reserve in Kinrara was degazetted as far back as 1926, nearly a century ago, when the area was still known as Kampung Pulas under British colonial rule. He attributed the confusion to irresponsible parties spreading false information about the land’s status.
A Long and Complicated History
The land’s history stretches back to 1996, when the state government approved its alienation to two companies, Citrasama Projek Sdn Bhd and Metroway Sdn Bhd, for the purpose of low-cost housing development. However, planning permission was rejected in 2003 by what was then the Subang Jaya Municipal Council (MPSJ), now rebranded as Subang Jaya City Council (MBSJ), on the grounds that 75% of the land comprised Class III and IV slopes exceeding 25 degrees, terrain deemed unsuitable and unsafe for development.
Following the rejection, the state government cancelled the project and revoked the land alienation in 2010. The affected developer pursued legal action, and the dispute eventually reached the Federal Court in 2017. Both the Court of Appeal and the Federal Court ruled in favour of MPSJ, affirming that the local authority’s decision to reject the development application was correct given the site’s hazardous slope conditions. MBSJ continues to maintain that the land is unsafe for commercial or residential development, a position now firmly backed by the highest court in the land.
Open Tender, Above Valuation
On allegations that the land was sold below market value at RM13.80 per square foot, amounting to RM101 million, Amirudin provided a detailed rebuttal. Following the cancellation of the housing project in 2012, the state government appointed a property consultant to conduct an independent market valuation, which pegged the land at RM13.02 per square foot, or RM95.3 million in total.
The land was subsequently offered through an open tender process, attracting three participating companies. The winning bid of RM101 million represented a premium of 5.9% above the independent valuation effectively above market value, not below it as alleged.
Amirudin stressed that his administration has never approved any development on the land, and that all decisions relating to it, from the original alienation to the eventual sale were made by previous administrations and through proper legal and regulatory processes.
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