Kota Kinabalu: Industrial Development and Entrepreneurship Minister Phoong Jin Zhe pledged to prioritise rescuing the stalled Star City building project.
He assured a focus on protecting the rights of Star City buyers, aiming to bring this abandoned project, dormant for two decades, to completion.
During the State Legislative Assembly session on Thursday, Phoong detailed the challenges faced by the KK One redevelopment plan.
He expressed concern over improper conduct that halted the project’s progress after initial advancements.
Phoong, responding to questions from nominated assemblyman Datuk Seri Yong Teck Lee, explained that in March 2019, Sabah Urban Development Corporation (SUDC) announced a joint venture with Fujian-based developer Skyrich Development Sdn Bhd to transform Star City into KK One, an integrated development centre.
“The developer obtained approvals from relevant authorities, including City Hall’s development plan permit and an environmental assessment report permit.
“However, an alleged ‘height approval’ from the Civil Aviation Authority of Malaysia (CAAM) caused complications,” he said.
The purported 205-metre height approval conflicted with Kota Kinabalu’s strict building height regulations near flight paths. This discrepancy prompted Phoong to investigate further.
Investigations then revealed suspicions of forgery, leading to a police report by the developer.
Subsequently, CAAM denied issuing a 205-metre height approval in 2020, initiating an investigation.
Phoong emphasised concerns about potential fraud due to suspicious aspects of the alleged approval letter.
He informed the State Assembly that the police are investigating document forgery under Section 468 of the Penal Code.
Meanwhile, the developer has submitted a new application adhering to CAAM’s approved height limit of 48.2 metres.
Phoong’s recent meeting with Skyrich Development and Pekestar representatives showed progress towards a solution within cost-effective parameters.
He assured ongoing efforts to find solutions benefiting buyers, investors, the government, and the public.
