Fellow Youtuber “American Hobo” spent part of a day exploring Kampung Baru in Malaysia on his bicycle. I’ve noticed that in the comments after most Kampung Baru videos on YouTube, there will be statements about how rich the inhabitants of this area actually are. The houses may look humble, but the location means that the land is worth a fortune. I’ve always been curious about the reality of this claim, and I asked one of my new best friends, the AI Grok, about it.
I asked Grok (property of xAI) about this idea that the residents of Kampung Baru are all secretly millionaires and billionaires. And this was Grok’s fascinating and nuanced reply:
From Grok, an AI created by xAI:
The claim that residents of Kampung Baru, a traditional Malay enclave in Kuala Lumpur, are all “millionaires and billionaires” due to the high value of their land is a widely circulated narrative, often amplified by YouTube videos and online discussions. However, this idea oversimplifies the situation and requires a more nuanced examination based on available evidence. Let’s break it down.
Context of Kampung Baru and Its Land Value
Kampung Baru is a 120-hectare Malay Agricultural Settlement (MAS) located in the heart of Kuala Lumpur, near high-value areas like KLCC and the Golden Triangle, where property prices can exceed RM1,000 per square foot. Its prime location makes the land highly desirable for developers, who see potential for luxury condominiums and commercial projects. Reports suggest that developers have offered residents compensation ranging from RM450 to RM600 per square foot, significantly lower than the market rates of nearby areas (e.g., RM1,500 per square foot for condos near the Petronas Twin Towers). Despite these offers, many residents have resisted selling, leading to the perception that they are “sitting on gold” while living in modest or even dilapidated conditions.
### Are Residents “Millionaires and Billionaires”?
The claim that “all” Kampung Baru residents are millionaires or billionaires is an exaggeration, though it has a kernel of truth for some. Here’s why:
1. *Land Value and Potential Wealth*:
– The land in Kampung Baru is indeed valuable due to its proximity to Kuala Lumpur’s commercial hub. A single plot of 4,000 square feet, if valued at RM1,000 per square foot, could theoretically be worth RM4 million (about USD 900,000). Larger plots or multiple properties could push this value higher, potentially into the tens of millions for some families.
– However, this wealth is unrealized—it exists only on paper unless the land is sold. Most residents have not cashed in, so they do not have liquid assets or live lifestyles associated with millionaires. The modest appearance of Kampung Baru, with its weathered wooden homes and narrow lanes, reflects this reality.
2. *Not All Residents Are Wealthy*:
– Land ownership in Kampung Baru is complex. Many plots are co-owned by multiple family members, sometimes dozens, due to inheritance practices. A 4,000-square-foot plot split among 30 heirs, for example, significantly reduces the per-person value. Dividing RM4 million among 30 people yields about RM133,333 (USD 30,000) per person—far from millionaire status.
– Some residents may not own land at all, living as tenants or in flats, like those in Kampung Sungai Baru (a sub-area of Kampung Baru). These residents have no claim to land wealth.
– The narrative that “everyone” is a millionaire ignores these disparities. While some families with large, solely owned plots could be considered wealthy if they sold, many residents are low- or middle-income earners who rely on the land for their homes, not as an investment.
3. *Refusal to Sell*:
– Many residents resist selling due to cultural and historical ties. Kampung Baru, established in 1900 as a Malay-only settlement, holds deep symbolic value as a bastion of Malay identity in Kuala Lumpur. Residents like Ida and Mas, quoted in reports, emphasize their emotional connection to the land, viewing it as an ancestral legacy rather than a commodity.
– Compensation offers are often deemed unfair. Residents argue that the RM450–600 per square foot offered by developers (e.g., Ritzy Gloss in 2021) is far below market value, especially compared to nearby luxury properties. Some recall a 1980s case where residents lost land to a failed development, fueling distrust.
– The discovery of a rare land title in 2024, designating Kampung Sungai Baru as MAS land, has strengthened residents’ resolve. They argue that this status protects the land from acquisition under the Land Acquisition Act, as it’s not for public purposes like infrastructure but for private luxury projects.
4. *Economic and Social Realities*:
– Kampung Baru’s infrastructure is outdated, with issues like poor drainage and lack of utilities (water and electricity have been cut off at times, possibly to pressure residents). This contributes to the area’s “poor” appearance, despite its high land value.
– Many residents are not financially sophisticated or positioned to leverage their land’s value. They may lack the resources to relocate or fear being unable to afford comparable housing elsewhere in Kuala Lumpur, where even RM198,000 (a reported compensation amount) is insufficient for a similar apartment.
Why the Narrative Persists
The “millionaires and billionaires” narrative is fueled by several factors:
– *Sensationalism*: YouTubers and commentators exaggerate to attract attention, framing the contrast between Kampung Baru’s rustic appearance and its land value as a shocking story of hidden wealth.
– *Misunderstanding Ownership*: The assumption that every resident owns valuable land ignores tenants, co-ownership, and varying plot sizes.
– *Developer Interest*: High-profile redevelopment plans and media coverage of disputes amplify the perception of Kampung Baru as a “gold mine,” reinforcing the idea that residents are sitting on untapped riches.
Evidence from Sources
– *MalaysiaNow (2024)*: Reports that 270 residents in Kampung Sungai Baru accepted compensation, while 74 rejected it, and 37 of 64 terrace house owners also refused. This suggests a divide, with some willing to sell but many holding out for better terms or cultural reasons.
– *The Straits Times (2024)*: Notes that residents like Mr. Johari feel “victimized” by low offers and are challenging valuations in court, highlighting dissatisfaction with compensation.
– *Malay Mail (2016)*: Quotes residents like Hashimah Yun, who fear displacement and loss of community, prioritizing heritage over financial gain.
– *The Edge Malaysia (2012)*: Mentions the complexity of land titles, with multiple co-owners, which complicates sales and reduces individual payouts.
Critical Perspective
The narrative that “all” Kampung Baru residents are millionaires or billionaires is a gross overgeneralization. While some landowners could realize significant wealth by selling, the reality is messier:
– *Billionaires? Unlikely*: No evidence suggests individual residents are billionaires. Even large plots valued at RM50 million (USD 11 million) fall far short of billionaire status (USD 1 billion). Malaysia’s billionaires, like Robert Kuok or Quek Leng Chan, derive wealth from diverse industries, not Kampung Baru land.
– *Millionaires? Some, Potentially*: Families with sizable, solely owned plots could become millionaires in ringgit terms upon selling, but co-ownership and low liquidity limit this. The 2014 WealthInsight report noted Kuala Lumpur had 13,800 millionaires, but these are concentrated in areas like KLCC or Damansara Heights, not necessarily Kampung Baru.
– *Cultural vs. Economic Value*: Residents’ refusal to sell often stems from cultural identity and distrust of developers, not a choice to remain “secretly rich.” The government’s push for redevelopment, as stated by Dr. Zaliha Mustafa in 2024, adds pressure but doesn’t guarantee fair outcomes.
Conclusion
The claim that “all” Kampung Baru residents are millionaires or billionaires is a myth rooted in the area’s high land value but detached from reality. Some residents could be wealthy if they sold their land, but complex ownership, modest incomes, and cultural ties mean most are not living as millionaires. Their refusal to sell reflects a mix of practical concerns (low offers, displacement fears) and deep-rooted attachment to their heritage. The narrative persists due to its sensational appeal, but it oversimplifies a complex socio-economic situation. For a deeper understanding, consider exploring primary accounts from residents or legal documents related to the land disputes, though these may not be fully accessible online.