Kampung Baru and the Legal Rebellion Called Wakaf
How a centuries-old Islamic concept is doing what developers, GLCs, and laws failed to protect heritage while enabling growth
A Village Surrounded by Cranes
Kampung Baru is not just land — it is legacy. It’s one of the few places in Kuala Lumpur where Malay heritage still breathes, wedged defiantly between skyscrapers.
Walk its streets, and you’ll find people who’ve lived there since before Merdeka. Houses built in the 1970s. A surau older than most banks. A warung still run by a third-generation family.
And all of it is under siege.
Developers circle the area like vultures, backed by state-sanctioned ambitions. The people are not against development — they’re against being erased.
Here’s the thing: not every solution has to be a condo. Some can be sacred.
Enter wakaf — an Islamic endowment structure older than capitalism, now being revived as an antidote to gentrification.
But can a religious charity mechanism survive the weight of billion-ringgit redevelopment dreams?
Let’s find out — by dissecting the arguments, honouring the legal minds who’ve guided us (Prof Salleh Buang and Prof Ismail Omar), and exposing the battle between profit and principle.
What They Say: Development Must Happen
The mainstream development pitch is slick and familiar:
“Kampung Baru is outdated. The landowners are being unreasonable. If they just sell, we can build a modern, world-class Malay district.”
This sentiment is echoed in the Sarawak Tribune article that sparked this piece. It quotes Datuk Mohtar Rahmad, an architect who supports wakaf-based leasing rather than outright sale — arguing this model allows development while protecting land ownership.
The Kampung Baru Development Corporation (KBDC), backed by the Kampung Baru Development Corporation Act 2011 (Act 733), is supposed to balance progress and heritage. Section 2 explicitly states its purpose: preserve cultural, religious, and landowner interests.
So why hasn’t it worked?
Because the legal tools remain blunt.
And the developers stay sharp.
Legal Reality: The Wakaf Option Isn’t a Gimmick — It’s Law
Wakaf is not a trend. It’s Islamic law.
It removes land from the speculative economy. Once dedicated, wakaf land cannot be sold or inherited — only used in ways that benefit the ummah.
That means development doesn’t require dispossession. It simply needs trusteeship.
Prof Dr Ismail Omar — One of Malaysia’s foremost wakaf scholar has spent his career pushing for wakaf as a real, scalable alternative to capitalist urban planning.
Even more critical was the late Dato Prof Salleh Buang, a towering figure in Malaysian land law. He consistently argued that the Land Act 1987 needed reform — not to eliminate Malay land protections, but to allow long-term leasing to non-Malays without breaching constitutional safeguards.
His proposals were cautious but visionary.
Here’s where the law stands now (as of June 2025):
The Land Acquisition Act 1960, last amended in 2016, still allows compulsory acquisition for “economic development” — a dangerously vague standard. But reforms proposed in 2024 aim to tighten the definition to “public purpose.”
The Malay Reservation Enactment 1913 has been replaced by state-specific laws. A Court of Appeal ruling in May 2025 confirmed that pre-Merdeka Malay Reserve land can be revoked — opening the door to potentially legal displacement.
A Wakaf Bill is under parliamentary review to harmonise state enactments and enforce accountability for wakaf trustees.
In April 2025, the Securities Commission launched a wakaf-compliant unit trust framework, making ethical financing more accessible.
In May 2025, the National Land Code was amended to streamline wakaf land registration and reduce legal disputes.
The tools are falling into place.
But tools don’t build justice — people do.
My Take: It’s Not About Development — It’s About Power
Let’s be honest.
Kampung Baru isn’t targeted because it’s old — it’s targeted because it’s valuable.
Developers don’t want your house. They want your square footage.
The idea that Malays must "sacrifice for national growth" is hollow when the ones gaining are politically connected GLCs, not the rakyat.
The same people who tell you “don’t be sentimental, just sell” are living in colonial-era homes in Bukit Tunku or Belgravia.
They’re sentimental about their history — just not yours.
And the truth is this:
We already have the tools to build ethically:
Wakaf allows perpetual, protected community ownership.
Sukuk wakaf enables Islamic, ethical financing.
Leasing to non-Malays is legally possible under safeguards — exactly what Prof Salleh proposed.
Menara Imarah — built on wakaf land in Jalan Tun Perak — proves this model works. No eviction. No erasure. Just shared benefit.
Why isn’t it used more?
Because wakaf cannot be flipped, rezoned, or sold to cronies.
And in Malaysia — that’s a threat to the system.
Who Gets Hurt: The Kampung Baru Residents
The lie is that residents are being “difficult.”
Most want better homes.
They just don’t want to be priced out of their own history.
Current redevelopment plans offer money — but not the right to return. Not at a price they can afford.
Many homes are deliberately neglected, while residents are pressured with quiet threats of acquisition.
There are reports of misinformation, manipulation, and even coerced agreements — the same playbook used in plantation buyouts and Orang Asli displacement.
And because this is a Malay reserve, it gets labeled as “internal community issue” — and conveniently ignored.
The Real Fixes: Legal Reforms That Matter
Inspired by Prof Salleh and Prof Ismail, here’s what real reform looks like:
Revise the Land Acquisition Act
Clearly define “public purpose”
Ban developer-backed acquisitions disguised as public projects
Require ombudsman oversight and fair valuation
Amend the Land Act 1987
Enable lease-based models for non-Malays
Maintain Malay ownership while expanding tenancy options
Pass the Wakaf Bill
Centralise wakaf governance
Enforce trustee audits and public disclosure
Digitalise Wakaf and Trustee Records
Transparent land ownership
Easy community access to documents and dispute mechanisms
Mandate Participatory Planning
Involve landowners in every stage of planning
Guarantee returns, rent caps, and wakaf dividends
Tribute to Our Legal Giants
Dato Prof Salleh Buang didn’t just teach law — he made it accessible to the rakyat.
He exposed loopholes, fought land theft, and laid the groundwork for wakaf-based reform. His death is a loss for the nation — but his ideas live on.
Prof Dr Ismail Omar continues this fight. His expertise in real estate and wakaf law proves that faith-based law can coexist with modern development — if we let it.
Their work should be required reading for every policymaker who claims to care about equity and inclusion.
Conclusion: Don’t Call It Development If It Destroys
Kampung Baru isn’t stuck in the past — it’s being held hostage by a system that equates progress with profit.
If we want to build a better Malaysia, we must start with conscience.
Let wakaf lead the way — not as a loophole, but as a law.
Because justice isn’t impractical.
What’s impractical is a capital city with no soul.
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