KUALA LUMPUR, May 18 — Private equity firm IDSK Equity Sdn Bhd today announced it has signed a Heads of Agreement (HOA) with Mas Kampong Bharu Holdings Berhad (Mas), paving the way for a RM500 billion redevelopment plan covering the historic Malay enclave of Kampung Baru and neighbouring Kampung Sungai Baru.
The agreement grants IDSK exclusive rights to acquire and develop 13 million square feet of land in Kampung Baru, valued at RM2,500 per square foot, bringing the total land value to RM32.67 billion.
The amount will be added to IDSK’s Assets Under Management (AUM), which now exceeds RM32 billion.
“This is not just about building towers. It’s about reclaiming the pride and legacy of Malay heritage land, while offering real economic inclusion to landowners and future generations,” said IDSK executive chairman Datuk Seri Azizul Tandek said in a press conference at Menara HLX here.
As part of the deal, Kampung Baru landowners are being offered compensation of RM2,500 per square foot — the highest to date — which IDSK says reflects both the land’s market value and its cultural significance.
Landowners will also have the option to retain their names on the land titles while participating in the project’s long-term income stream.
The project, branded “Kampung Baru 2.0: Islamic Heritage City”, aims to balance modern development with cultural preservation.
Mas, named after the Malay Agricultural Settlement established in 1899, will lead engagement with landowners, while IDSK will handle financial structuring and oversee project execution.
Among the key highlights is the proposed construction of “Twin Tower RM”, a new twin-tower development envisioned as a national landmark to rival the Petronas Twin Towers.
The “RM” acronym stands for Ringgit Malaysia, Rakyat Malaysia, and Raja Melayu, symbolising economic strength, public inclusion, and royal heritage.
“This project is not just real estate investment. It is an investment into the country’s future,” Azizul added.
The Kampung Baru 2.0 masterplan will cover more than 300 acres of gazetted land under Act 733.
The plan includes a structured resettlement programme, affordable housing, commercial zones, cultural institutions and infrastructure aligned with environmental, social and governance (ESG) principles.
The first phase is expected to begin in 2027, with major construction works projected to start by 2030.
IDSK has also extended invitations to local institutions including the Employees Provident Fund (EPF), Permodalan Nasional Berhad (PNB), and Khazanah Nasional Berhad, as well as international investors such as Emaar Properties of the United Arab Emirates and Gulf-based sovereign wealth funds to participate in the Kampung Baru 2.0 development.
Azizul said a Memorandum of Understanding (MoU) for a US$50 billion investment has already been signed with the Dubai Royal Office.
Azizul explained that IDSK Equity, as a private equity management corporation (PEMC), is directly controlled by strategic investors, unlike public listed companies (PLCs) and other developers owned by public shareholders.
“Being a PEMC, IDSK is not bound by stock exchange requirements such as annual general meetings and public reporting.
“This structure allows investment decisions to be executed swiftly without interference from external shareholders,” he said.
Azizul also said that IDSK has informed the Securities Commission about the project.
Mas honorary secretary, Shamsuri Suradi, said the development in Kampung Baru is “well overdue”.
“We will begin by engaging with the landowners to build consensus, to understand how many wish to retain their name on their land or continue living there, and how many prefer to sell it outright.
“We see that Kampung Baru consists of third and fourth generation landowners. If we speak to them, most no longer want to hear about the government wanting to buy their land, they are tired of hearing about it and how to sell, so they are just waiting,” he said.
