Kampung Sungai Baru Landowners Compensated Fairly At Market Value With Ancillary Claims Hafiz Hassan

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 In “Redevelopment of Kampung Sungai Baru: Are we influenced by facts or by our interpretation of the facts?”, I shared the fact that the land acquisition was made pursuant to a declaration under Section 8 of the LAA vide Gazette Notification No. 9412 dated June 21, 2021.
The acquisition was for the purpose of the Kampung Sungai Baru redevelopment project generally known as “Projek Pembangunan Semula Kampung Sungai Baru Bandar Kuala Lumpur, Wilayah Persekutuan Kuala Lumpur”.
After the acquisition, the Land Administrator (LA) conducted enquiries pursuant to the provisions of the LAA in order to ascertain the value of the lands acquired so as to compensate the registered proprietors for the acquisition. At the end of the enquiries, the LA made various awards of compensation to the respective registered proprietors.
Expectedly, there were registered proprietors who were not satisfied with the quantum or amount of compensation awarded to them. Accordingly, they filed objections under Section 37(1) of the LAA in Form N requiring the LA to refer the matters to the Court for determination as provided under Section 38(1) of the LAA.
The objections were duly referred to the Court under Section 38(5) of the LAA in Form O. The reference is called a land reference matter.

A general view of Kampung Sungai Baru in Kuala Lumpur April 26, 2025. The writer argues that the compensation awarded for Kampung Sungai Baru land was fair, reflecting market value and excluding speculative elements. — Picture by Yusof Mat Isa
Four land reference matters were decided by the High Court at Kuala Lumpur from January to May this year. The first and second were filed in March 2022 and decided by High Court judge Ahmad Shahrir Mohd Salleh. The third and fourth were filed more than a year later in May 2023. Both were decided by High Court judge Aliza Sulaiman.
In all four matters, the awards were upheld and maintained. In coming to their decisions, the judges had two assessors appointed under Section 40A (2) of the LAA for the purpose of aiding the judge in determining the objections and in arriving at a fair and reasonable amount of compensation.
In each of the matters, each of the judges found no reason to disturb each of the awards made by the LA. The judges found that the LA’s reliance on the comparison method was appropriate as it provided a fair and objective assessment of the market value of the acquired land (including building).
In his judgment, Justice Ahmad Shahrir Mohd Salleh said:
“I found the compensation awarded [by the LA] adequately reflected the market value of the [acquired land] including reasonable ancillary claims. Speculative elements … were correctly excluded from consideration.
“It is the finding of this Court that the award adhered to the statutory principles under the LAA ensuring fairness and objectivity in the valuation process.”
The awards of compensation for the acquired lands (including buildings) in Kampung Sungai Baru adequately reflected market value including reasonable ancillary claims. - malaymail
* This is the personal opinion of the writer, Hafiz Hassan or publication and does not necessarily represent the views of MMKtT.

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