Why is the RM1,000 psf offer deemed insincere by Johari?

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The RM1,000 psf Offer for Kampung Baru Land is Deemed Insincere Due to Impossible Preconditions

The RM1,000 per square foot (psf) offer for land in Kampung Baru has been labelled "insincere" by former finance minister II Datuk Seri Johari Abdul Ghani due to several preconditions that he argues are impossible to meet. These conditions include requiring 100 per cent agreement from all landowners and compelling recipients to purchase shares in the Special Purpose Vehicle (SPV) established for redevelopment. Johari contends these stipulations make the offer impractical and potentially coercive, undermining its genuine intent.
Impossibility of Universal Agreement

A primary reason cited for the offer's insincerity is the requirement for unanimous consent from all approximately 5,000 landowners or their heirs in Kampung Baru. This precondition is considered unrealistic, especially given the historical significance and diverse ownership structures of the 118-year-old Malay enclave. Johari suggests that forcing agreement from every single owner, some of whom have developed their properties and derive rental income, is an unachievable hurdle.
Coercion Through SPV Share Purchase

Furthermore, the offer mandates that landowners accepting the RM1,000 psf valuation must use a portion of that value to purchase shares in the newly formed SPV. Johari questions the government's ability to guarantee the SPV's profitability and stability, drawing parallels to past failed land development companies. He views this compulsory share purchase as a form of coercion, making it difficult for landowners to accept the offer freely, particularly when considering the total RM10 billion valuation of the 230 acres at the proposed rate.
Unanswered Questions on SPV Control and Funding

Significant concerns were also raised regarding the control and financial backing of the SPV. Johari sought clarity on whether the SPV would be privately or publicly controlled, and if public, which government agency would own it. He also questioned the feasibility of securing a RM10 billion loan for the SPV and whether the current Finance Minister, Lim Guan Eng, would consent to a governmental guarantee for such a loan. These unanswered financial and administrative questions cast doubt on the offer's practical implementation.
Alternative Development Approach Suggested

In contrast to the current offer's structure, Johari proposed a more pragmatic approach to developing Kampung Baru. He suggested negotiating individually with landowners who come forward, paying them upfront, and commencing development on agreed plots. This incremental development, he argued, could serve as a visible example of progress, potentially encouraging other hesitant landowners to reconsider the offer as they witness the tangible results.

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Why is the RM1,000 psf offer deemed insincere by Johari?

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