The Environmental Protection Society of Malaysia (EPSM) however told FMT that such issues were nothing new.
EPSM president Nithi Nesadurai said a similar case occurred in 2008, when the Draft Kuala Lumpur City Plan 2020 received strong objection from the public.
Nithi, who was on the panel set up to hear feedback on the plan drafted by the Kuala Lumpur City Hall (DBKL), said a number of then-opposition MPs who took office after the general election had demanded that it be revised.
He said the panel had submitted its recommendations to the Kuala Lumpur mayor who never gazetted the city plan.
“Everything which was there in draft form, based on our input – it did not mean anything because it was not gazetted. No one needed to follow what was in the plan.”
He also recalled a case in which a developer had offered to put up a building for a government institution in return for a huge plot of land.
“At that time, I think the building they were constructing was only valued in the millions. The land they got in return, after it was built up, would have yielded billions.
“The Federal Hill land swap is not a new story of ‘you build me this, I give you that’.
“These deals were happening, and if you dig around, there could be more. What the developers get in return is way beyond the original scope,” he said.
Federal Hill, a 20-hectare plot of land near KL Sentral, was acquired in 2012 by SP Setia in a land swap in return for building a replacement facility for the NIH in the developer’s township in Setia Alam, Shah Alam.
In 2015, SP Setia said it expected the Federal Hill project, which had a gross development value of RM15 billion at the time, to begin contributing to sales from 2017 onwards.
Nithi said DBKL must be transparent in how it works. He also urged DBKL and the federal territories ministry to ensure that “sweetheart deals” are not permitted.
Although residents in the area faced an uphill task in challenging the land swap, he said, they could ask DBKL if it had already issued the development order for the project to SP Setia.
“If it has yet to issue SP Setia the development order, then it opens up opportunities for the residents to challenge the deal.
“But if the order has been issued, there is a greater obstacle ahead for the residents against SP Setia.”
When asked about the environmental impact of the mixed-use commercial project, Nithi said the plot of land was part of a green lung and had been gazetted for institutional purposes only.
“Apart from the animals and wildlife, it is a huge air-conditioner for the city which helps absorb carbon dioxide. It (the project) will have a very negative impact on the city in the long term.”
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