Daim Strikes Again?
A look at Mega Landbank Deals worth Tens of Billions since Najib came into Power
By Kelvin Foo
It was Daim who led the government delegation to Singapore holding talks with Singapore on KTM land development back in 1990. A series of talks were held in the last two decades under Mahathir and Abdullah without conclusion. During these period, Malaysia-Singapore bilateral relations was mired with controversy over many other issues such as water, causeway link, CPF, airspace, sand, and others. PM Najib’s recent visits to Singapore again brought much public attention. It was reported Najib reached a deal with Singapore counterpart PM Lee to develop KTM land. Done deal? What about other pending issues such as the ‘crooked bridge’? Through this visit, obviously the main topic is about KTM’s multi billion landbank.
In the aftermath of the 1997 Asia financial crisis, Daim made a comeback into Cabinet after the sacking of Anwar as DPM. Daim held a minister without portfolio post and played the role as an economic advisor. It was Daim’s idea during this tenure to turn government’s strategic properties into commercial ventures. Nevertheless, this did not materialise in his short period in office. Fortunately, as far as accountability and transparency is concerned under the PM for 22 years. Barry Wain disclosed Daim told him in an interview that he will make good his personal interests if any opportunity arises from government policy.
Najib became the PM for only sligthly more than one year. We have seen a new euphoria for government owned landbank developments. These are mega real estate developments involving tens of billions of ringgit a year. Among those in the pipeline are:
1. Federal prime landbank with multi billions in total development value at Jalan Duta involving the Naza Group. In a land swap, Naza proposed to build the nation’s biggest convention center for Matrade. No open tender was called.
2. Rubber Research Institute’s more than one thousand acres prime land at Sungai Buloh. Former minister Lim Keng Yeik was known to have been strongly against its development while holding the Commodity Minister post.
3. Proposed Sg. Besi Airbase development, more than one hundred acres prime land in KL city. An investigation was called into the involvement of individuals related to PM’s infamous wife.
4. KTM Land in Singapore.
5. Proposed amendment of Akta Tanah Pos to enable Pos Malaysia Berhad to go into real estate development for land allocated by government supposedly for postal services. A deviation in the role of the national postal services provider. PMB hopes to generate more revenue from the release of these high value prime land after incurring hundreds of millions lost in share investments into troubled Transmile. PMB is reported to have more than 6 hundred outlets throughout the nation. Already, Tune Money is aiming for a piece of prime land at Brickfields for commercial development – a well-known boss who has served good ‘national service’ to set up Formula One car team, rent seeking scenario.
Real estate development is welcome to generate economic activity. However, it must serve with the right purpose and planning. Accountability and transparency should be adopted as its highest priority for the sake of public interest.
These euphoria of real estate developments valued at tens of billions of ringgit in the space of one year raises plenty of concern. With government facing a huge debt of RM 362 billion and will be bankrupt in 5 to 9 years if the rakyat’s subsidy privillege is not reduced, should the nation’s ‘jewel’ assets become victims. Are we a failing nation under PM Najib?
