KKIP LAND SOLD UNERVALUED

by : Junz Wong

 

Junz Wong questioned the Chairman of KKIP, Datuk Raymond Tan who is also Deputy Chief Minister cum Minister of Industrial Development whether or not State has sold a parcel of land with total size of 86 acres at zone IZ9 in KKIP under master title CL015583801 at the value of undervalued at RM7.50 per square foot to Tan Chong Manufacturing Company.

 Has this land deal been materialized?

Based on my research, the current market price for prepared KKIP land is between RM28 to RM35 psf.

1.     What is the rationale to sell the parcel of land at such a seemingly undervalued if not ‘cheap’ price to Tan Chong?

2.     Are there special terms and conditions attached with this land deal?

3.     If so, what kind of investments and industrial developments would Tan Chong bring into Sabah? Please explain in terms of economic value & or contributions to state’s GDP.

4.     In view of Sabah’s state economic activity and industry composition, how is Tan Chong’s upcoming automobile investment (if any) relevant to Sabah’s Manufacturing industry in the long run?

5.       If the state has an objective to develop an automotive industrial park in KKIP, why wouldn’t other automobile players such as Proton or Perodua express interests in investing here? Please explain the strategic relevance of the said plan.

6.     Is Tan Chong free to sell the said land parcel or is there such a condition that TC can only re-sell back to the State government in the event TC intends to close down or have no use for the land? Even so, at what price would the state government acquire the land back for?

Junz Wong who is also the DAP Sabah State Assistant Secretary demands that Datuk Raymond Tan respond and explain the whole matter because people of Sabah has the right to know.

This deal if materialised will create confusion amongst existing landowners of KKIP land as to the huge disparity of land prices, even with the cost of infrastructure imputed. For those investors that have acquired KKIP land at much higher prices, their confidence and ability to obtain financing would likely be impacted negatively.

As such, it is imperative that Datuk Tan explain immediately the issue at hand, as future investors too in KKIP will wish to know the state’s long term strategic development plan in order to evaluate the viability and potential ahead with the area.

We want to know the truth about this land deal. Junz concluded