Kota Madani, a misplaced priority amidst budget cuts, says Pas Youth

Sinar Daily

8 hours ago

The youth wing's chief argued that such a project represents a misplaced priority at a time when Malaysia is grappling with subsidy reductions and a worsening fiscal deficit. By SINAR DAILY REPORTER
01 Jul 2025 08:18pm
The initial phase of development, spanning 41.28 hectares in Precinct 19, is slated to commence in September 2025 and is projected for completion by the end of 2027. - Bernama photo
SHAH ALAM – Pas Youth has slammed the Federal Government's ambitious "Kota Madani" development in Putrajaya, labelling it an "elitist" undertaking that could exacerbate the nation's financial woes.
The youth wing's chief, Afnan Hamimi Taib Azamudden argued that such a project represents a misplaced priority at a time when Malaysia is grappling with subsidy reductions and a worsening fiscal deficit. The initial phase of development, spanning 41.28 hectares in Precinct 19, is slated to commence in September 2025 and is projected for completion by the end of 2027. - Bernama photo
Afnan cautioned the government against pursuing what he termed "vanity symbols" for the Prime Minister, urging fiscal prudence instead of new commitments.
He highlighted concerns that the project, despite an estimated cost of RM4 billion, could incur a substantially higher financial burden if funded through a private finance initiative (PFI).
The PFI model, he noted, has historically drawn criticism for potentially masking a government's true debt obligations in official records.
Afnan called on the administration to disclose the precise cost of the project, including annual commitments stretching over the next 20 to 25 years.
"What tangible benefits can the people expect, especially the younger generation who will inherit the weight of this debt?
"Why is such a extravagant project being prioritised when funding for education, healthcare, food security and social welfare continues to diminish?" Afnan questioned in a statement today.
The Alor Setar MP also raised objections to the involvement of Putrajaya Holdings Sdn Bhd, a subsidiary of Petronas, as the project's primary driver.
He pointed out that this comes at a time when the national oil and gas corporation faces declining profits, workforce reductions and increasing investment pressures across various sectors.
"The government should be safeguarding Petronas, not transforming the company into a 'political ATM' to finance elitist projects that do not offer equitable commercial returns," Afnan added.
Calling for an immediate halt to the Putrajaya government quarters project, Afnan demanded that a comprehensive cost-benefit analysis be presented in Parliament.
"If the government insists on proceeding, it will become evident that the true purpose behind Kota Madani is not national advancement, but rather the pursuit of political ambition and the legacy of a particular individual," he concluded.
On June 26, Prime Minister Datuk Seri Anwar Ibrahim officially launched the Kota Madani project, conceived as a smart city initiative designed to be people-centric and environmentally sustainable.
Reports indicate the project will operate on a build, lease, maintain and transfer model, meaning the government will not directly bear maintenance costs but will pay through a long-term lease arrangement.
The initial phase of development, spanning 41.28 hectares in Precinct 19, is slated to commence in September 2025 and is projected for completion by the end of 2027.
This phase will comprise 10,000 high-density vertical residential units, designed to accommodate over 30,000 residents.