Phoong (right) chatting with Yong (middle) and Kadamaian Assemblyman Datuk Ewon Benedick (left), who is also Federal Entrepreneur Development and Cooperatives Minister, at the State Legislative Assembly (DUN).
KOTA KINABALU: Industrial Development and Entrepreneurship Minister Phoong Jin Zhe pledged to prioritise the rescue of the stalled StarCity building project.
He promised to continue advancing a win-win solution while prioritising the protection of StarCity buyers’ rights, allowing the abandoned building that has been left idle for 20 years to see light at the end of the dark tunnel.
The DAP Luyang Assemblyman provided a detailed report of the setbacks faced by the KK One redevelopment plan while answering questions from Nominated Assemblyman Datuk Seri Yong Teck Lee at the State Legislative Assembly (DUN) sitting here today.
Expressing deep concern as the project had already seen progress before encountering apparent improper conduct leading to a standstill, Phoong said that in March 2019, the Sabah Urban Development Corporation (SUDC) announced a joint venture agreement with the Fujian-based developer, Skyrich Development Sdn Bhd, declaring the redevelopment of StarCity into the “KK One” integrated development centre.
“Since then, the developer has sequentially obtained approvals from relevant authorities, such as the Kota Kinabalu City Hall’s (DBKK) development plan permit, environmental assessment report permit, and the disputed “height approval” allegedly issued by the Civil Aviation Authority of Malaysia (CAAM).
“It is widely known that the planned construction site is located near flight paths, and authorities have strict regulations on building heights in downtown Kota Kinabalu. The purported approval letter issued in 2020 authorised a height limit of 205 meters,” said Phoong
He was sceptic upon seeing the 205-meter height limit initially, as nearby buildings under development were limited to around 100 meters. This raised concerns, prompting him to request multiple confirmations from all parties involved.
Both Phoong and Yong presented the so-called “approval letter” purportedly from the Civil Aviation Authority Malaysia during the State Legislative Assembly session.
However, Phoong revealed that as expected, by 2023, the developer discovered that this approval letter might be forged, leading to an immediate halt to the project and the developer lodging a police report.
In a letter to DBKK, CAAM categorically denied granting a 205-meter airspace height approval to the developer in 2020 and declared an investigation.
Yong requested further investigation into why two contradictory letters supposedly from the CAAM were received.
Phoong disclosed that, based on his inquiry with CAAM and the developer’s police report, suspicions arose regarding the authenticity of the so-called “old approval letter.”
“The letter was not sent from a government-recognised official .gov.my email address but from a deceptive .gov.my/gmail.com third-party address, raising concerns of fraud,” he said.
Phoong further said that the police report mentioned several suspicious factors: firstly, the letter was not sent from an officially recognised government email address; secondly, it was sent after office hours, at 11 pm; thirdly, the format and signature in the email were highly suspicious; fourthly, there were no official physical copies from the CAAM, only through email instead of the original; fifthly, the serial number of the purported CAAM letter was also suspicious.
Therefore, he proactively inquired with the police about the current status of the investigation. He revealed that the police had invoked Section 468 of the Penal Code to investigate document forgery. The investigation is still ongoing.
However, Phoong shared that the developer had not given up and officially submitted a new application for airspace height.
According to the latest letter from the CAAM dated February 20, 2024, the authority approved the construction of buildings not exceeding 48.2 meters in height. This letter has been confirmed to be genuine, signed and issued by the Chief Executive Officer of the Civil Aviation Authority Malaysia, Dato Kapten Norazman Mahmud.
“It is now clear that the proposed 205-meter height is unfeasible, especially as stated in the explanation letter from the CAAM, which mentioned that a 205-meter height limit would pose significant risks to Kota Kinabalu International Airport and the aviation system,” said Phoong
He emphasised that this is a very serious matter, involving large sums of money, buyers’ rights and confidence, and what makes him even more dismayed is that it affects foreign investors, tarnishing Sabah’s image.
He also mentioned the twists and turns of this matter and expressed great concern for the buyers’ emotions. Therefore, he has been in close communication with the Buyers’ Association (PEKESTAR) throughout this period, hoping everyone can stand together and give him confidence in handling this matter.
Phoong responded firmly to Yong’s inquiry about safeguarding buyers’ interests.
He said he would safeguard, defend and protect buyers’ interests. This is non-negotiable.
“Regardless of the outcome, safeguarding buyers’ interests remains my primary mission. I will do everything possible to find a solution to ensure that this stalled building, which has languished for 20 years, can see light at the end of the dark tunnel,” he reiterated
He later updated the media that the latest progress is that he met with the representatives from Skyrich Development Sdn Bhd and their legal representatives last Saturday.
Prior to this, the developer had also met with representatives from PEKESTAR. He was pleased that the developer had expressed its willingness to continue advancing the rescue plan.
“Currently, the developer is striving to obtain a higher building airspace limit and advance the rescue plan within cost-effective parameters.”
Phoong also committed, declaring that as long as he is in office, he will do his utmost to find solutions for buyers, investors, the government and the people of Kota Kinabalu.
He will not allow any opaque, improper or malicious actions to handle this matter. He also stated that he would continue to provide the public with the latest information.
