Proposed Residential Development on Lot 1021, Lot 1297, Lot 2273, Lot 25 and PT 23730 (New Lot 20506), Mukim , District of Hulu Langat, Darul Ehsan for Sime Darby Properties (Selangor) Sdn. Bhd.

CHAPTER STATEMENT OF NEED AND PROJECT 2 OPTIONS

2.1 Introduction

This chapter highlights the need to establish the proposed residential development and the available project options in the Project area. The first part would discuss the Project description, its effect on the local environment, social and economic factors that support the proposed Project. It is essential to look into these factors in order to predict the success of the Project while giving enough consideration to attain long–term sustainable environment in Mukim Semenyih, District of Hulu Langat, Selangor Darul Ehsan.

The following subsection of this chapter will discuss two (2) opposing scenarios. The “No-Project” option will focus on the adverse effect of the Project that may affect local population and the environment, which eventually will lead to Project cancellation. The other option similar to the first subsection of the chapter that lists out all the possible benefits of the Project those are likely to be considered. In both cases, any benefits or opportunities lost with each selection are made known in order to achieve at the most feasible development option.

2.2 Statement of Need

The proposed residential development will be carried out on an area of 212.80 acres (86.12 ha) on Lot 1021, Lot 1297, Lot 2273, Lot 25 and PT 23730 (New Lot 20506), Mukim Semenyih, District of Hulu Langat, Selangor Darul Ehsan and to be developed by Sime Darby Properties (Selangor) Sdn. Bhd. The need for the proposed Project is based on the following rationale and further elaborated in Table 2.1 . • The project site is potential for a residential development due to its location, surrounding development and property demand specifically from areas like Semenyih, and Seremban. • The project site has ease of accessibility with the available road networks and highways nearby the project site allow access to the south, north and Kuala Lumpur city centre.

EUROPASIA ENGINEERING SERVICES SDN. BHD. 2-1 Proposed Residential Development on Lot 1021, Lot 1297, Lot 2273, Lot 25 and PT 23730 (New Lot 20506), Mukim Semenyih, District of Hulu Langat, Selangor Darul Ehsan for Sime Darby Properties (Selangor) Sdn. Bhd.

Table 2.1: Statement of Need

Aspect Description Strategic Location & • Well-established road accessibility, i.e. assessable via Jalan Semenyih High Accessibility and LEKAS Highway, Semenyih, Kajang and Bangi Town within its ensures the vicinity and efficient communication system surrounding, to and from marketability of the the Project Site. Project • Will cater to Kajang, Semenyih, and surrounding build-up area population catchment.

Landuse Optimization • Commercial lot would upgrade the economic surrounding areas. would increase the land • The proposed Project will optimize the usage of land, which is value and give higher presently covered with oil palm plantation and several rubber trees. revenue to the owner • The proposed development will serve to fulfill the demand for housing in the area towards year 2020. • Congruent with the surrounding area landuse which consist of new residential developments as Taman Tasik Semenyih, Taman Sri Tanjung and Bandar Rinching would maximize the usage of existing infrastructure in Semenyih and Kajang Town. • The development will indirectly increase the value of property in the surrounding areas.

Other Supporting • Expands the employment market ranging from laborers (i.e. Matters construction phase) to office/clerical works (i.e. operational phase of the commercial enterprises) and • Increase in state and nation’s revenue through issuance of licenses and collection of taxes. • To provide sufficient housing for the various socio-economic groups of society especially the middle class to own a house at the surrounding area. Environmental • From an ecological point of view, the current biodiversity of the flora Consideration and fauna composition of the site will be slightly affected as the current secondary vegetation will have to be sacrificed during the construction state. However, the implementation of a proper landscaping programme can ensure that the area remains a green- hub. • The proposed development includes in its concept the development of lush green areas/ buffer zone or landscaped areas, and this is conducive for healthy living and further improves/reduces the anticipated urban pollution (i.e. air, noise, water, etc.) generated.

EUROPASIA ENGINEERING SERVICES SDN. BHD. 2-2 Proposed Residential Development on Lot 1021, Lot 1297, Lot 2273, Lot 25 and PT 23730 (New Lot 20506), Mukim Semenyih, District of Hulu Langat, Selangor Darul Ehsan for Sime Darby Properties (Selangor) Sdn. Bhd.

2.3 Current Development Policy

In the Tenth Malaysian Plan 2011-2015, efforts have been initiated to enable the nation to be a high- income economy and developed nation by 2020 and this has been encapsulated in 10 big deals: i. Internally driven, externally aware ii. Ensuring equality of opportunities and safeguarding the vulnerable iii. Supporting effective and smart partnerships iv. Government as a competitive corporation v. Valuing our environmental endowments vi. Concentrated growth, inclusive development vii. Nurturing, attracting and retaining top talent viii. Unleashing productivity-led growth and innovation ix. Transforming to high-income through specialisation x. Leveraging on our diversity internationally

Towards transforming into a high-income economy, strategy is mainly focused to build density, develop clusters and specialise in high value sectors. The concentration of firms and talent supports faster economic growth, primarily by reaping the benefits of agglomeration of scale, productivity and innovation. People cluster towards cities as higher density promotes higher wages and economic opportunities. A major factor in driving the increase in average income of Malaysians over the past few decades has been the increasing urbanisation of the population. By 2020 approximately 70% of Malaysia’s population will be concentrated in urban areas and, therefore, the challenge is to facilitate this increasing density in cities and urban conurbations

Growing cities, ever more mobile people and increasingly specialised products are integral to development. A policy priority in the Tenth Plan will be to enhance the liveability of cities. Major initiatives have been identified under the National Key Result Areas (NKRAs), particularly to address crime and improve public transportation in major urban centres. Liveability, however, encapsulates a broader concept, in terms of striving for a vibrant environment to live, work and play. Such a holistic approach is important, specifically in the context of attracting top talent to Malaysian cities, in order to drive strategic growth sectors.

10 th Malaysian Plan has transformed the current approach from segregating the functions of developments towards landuse: residential, commercial and industrial to mixed development that

EUROPASIA ENGINEERING SERVICES SDN. BHD. 2-3 Proposed Residential Development on Lot 1021, Lot 1297, Lot 2273, Lot 25 and PT 23730 (New Lot 20506), Mukim Semenyih, District of Hulu Langat, Selangor Darul Ehsan for Sime Darby Properties (Selangor) Sdn. Bhd. promotes residential, working environment, recreational activities in the same area. Further, township is designed to reduce the travelling distance and encouraging public integration which is most likely to be achieved by the establishment of mixed developments that consist of residential, commercial, institutions, utilities and infrastructures.

2.2.1 National Physical Plan 2 (NPP2)

The main thrust of National Physical Plan 2 (NPP) is to concentrate the nation’s scarce resources to a few priority urban centres with the greatest growth potential for job creation along with the key economic corridors while protecting the rural areas and natural environment in conjunction with the ‘Concentrated Decentralisation’ Development strategy. The proposed project site falls within the North-South Corridor categorized under the Main Development Corridor. The propose project site is located at the Central region within the Kuala Lumpur Conurbation (i.e., Federal Territory of Kuala Lumpur, Selangor and Seremban) ( Refer Figure 2.1 ).

Due to rapid growth of urban areas and concentration of growth on existing large urban centres of activities, most of urban population is anticipated to be living and working in four major conurbations of Kuala Lumpur, Georgetown, Johor Bahru and Kuantan. These four conurbations are seen as the main engines of growth to generate the required jobs and enhance high income, thus ensuring quality of life for all living areas and the conurbations are expected to contain almost 70% of the urban population of the Peninsular by 2020. Therefore spatial planning should aim to create urban centres offering all residents within urban areas a high quality of life and acceptable level of facilities such as schools, colleges, hospitals and as well as good quality urban transport and utilities. Thus, being part of the National Growth Conurbation plays an important role for the growth of the proposed project area.

2.2.2 Selangor Structure Plan 2020

The proposed development compliments the Selangor Structure Plan where this area is allocated for township development which adheres to the policies below: • FZ 4 - Development to be carried out systematically and approved according to the local needs of the particular area; • FZ 7 - Environmental quality to be upgraded to produce a comfortable and safer environment for living;

EUROPASIA ENGINEERING SERVICES SDN. BHD. 2-4 Proposed Residential Development on Lot 1021, Lot 1297, Lot 2273, Lot 25 and PT 23730 (New Lot 20506), Mukim Semenyih, District of Hulu Langat, Selangor Darul Ehsan for Sime Darby Properties (Selangor) Sdn. Bhd.

• FZ 15 - Travel demand management to be implemented to develop a sustainable transportation system; • FZ 20 - New development must give importance to available plots in township area; • FZ 55 - Development area must allocate drainage reserve and infrastructures; • FZ 29 - Residential development must compliment the demand; and • FZ 41 - Residential development must be quality and comfortable.

2.2.3 Local Plan of Majlis Perbandaran Kajang 2020

Based on ‘Rancangan Tempatan Majlis Perbandaran Kajang 2020’gazatted on the 20 th January 2011, the proposed Project Site lies within Blok Perancangan Semenyih under BPK 3.4: Sri Tanjung and BPK 3.5: Tasik Semenyih and that is designated for residential development as illustrated in Figures 2.1.

The need for residential development in Semenyih is predicted to increase from 1,717 units in the year 2010 to 2,607 unit by the year 2015 and 2,803 unit by the year 2020 (as shown in Table 2.2 ). The projected landuse of the overall Project Site is classified for residential development (refer Figure 2.1). The proposed landuse class of BPK 3.4 and BPk 3.5 is as shown in Figure 2.1 and as attached in Appendix 2 . Thus, the proposed development compliments the projected landuse of BPK 3.4 and 3.5.

Table 2.2: Projected residential need for Semenyih until year 2020

2010 2015 2020 BP Unit Hectare Unit Hectare Unit Hectare 427 13.09 527 13.16 714 6.89 Cheras 7,392 226.43 9,392 227.83 8,696 116.71 Hulu Langat 172 5.27 172 5.27 86 2.63 Hulu Semenyih 263 8.05 281 8.07 331 4.17 Kajang 10,648 308.58 14,648 328.98 14,952 169.83 Semenyih 1,717 55.55 2,607 56.18 2,803 32.27 Total 20,619 616.97 27,627 639.49 27,582 332.5 Source: Kajian Rancangan Tempatan Majlis Perbandaran Kajang,2011

EUROPASIA ENGINEERING SERVICES SDN. BHD. 2-5 Proposed Residential Development on Lot 1021, Lot 1297, Lot 2273, Lot 25 and PT 23730 (New Lot 20506), Mukim Semenyih, District of Hulu Langat, Selangor Darul Ehsan for Sime Darby Properties (Selangor) Sdn. Bhd.

EUROPASIA ENGINEERING SERVICES SDN. BHD. 2-6 Proposed Residential Development on Lot 1021, Lot 1297, Lot 2273, Lot 25 and PT 23730 (New Lot 20506), Mukim Semenyih, District of Hulu Langat, Selangor Darul Ehsan for Sime Darby Properties (Selangor) Sdn. Bhd.

2.3 Selection of the Most Feasible Project Option

Two (2) options are made available for selection, either to abandon the development (i.e., No Project” option) and revive the agriculture activities at the Project Site, or conversely, one may choose to go ahead with the proposed development. Benefits accrued from the proposed project or opportunities that are lost or deprived upon its abandonment should be reviewed from the perspective of socio-economy, landuse suitability and the environment. At the end of the discussion, one of the options shall be selected and it shall be regarded as the most appropriate choice of development.

In this subchapter, all benefits and issues accrued from the selection of the proposed Project is compared against the possibilities of the “No-Development” option. This is to enable the selection of the most suitable choice of development within the framework of environment conservation and socio-economical advancement.

2.3.1 “No-Project” Option

The “no-project” option to support that the existing environment be conserved, with the entire area to be developed left undisturbed and the oil palm and rubber trees are being retained within the Project Site. As a result, no physical, biological or socio-economic changes are expected to occur to the present environment and this scenario would not contribute to any positive development on the surrounding environment.

From the economic point of view the opportunities that come with urban progress such as employment opportunities and revenue generation to the state government shall be lost, together with the various downstream benefits generated by the construction sector. The social impact however, may not be well-apparent since there exist multitudes of other developments in the surrounding vicinity but nonetheless, the employment and local/foreign investment opportunities shall not materialize.

In short, the “No Project” option does not prove to be a feasible choice of development, be it for social or economical improvements. Hence, the “No-Development” choice is regarded as inappropriate and thus, is eliminated from being one of the possible development options.

EUROPASIA ENGINEERING SERVICES SDN. BHD. 2-7 Proposed Residential Development on Lot 1021, Lot 1297, Lot 2273, Lot 25 and PT 23730 (New Lot 20506), Mukim Semenyih, District of Hulu Langat, Selangor Darul Ehsan for Sime Darby Properties (Selangor) Sdn. Bhd.

2.3.2 Options for agricultural activities

There could be an option to establish the oil palm and rubber plantation at the project area whereby replanting of oil palm and rubber trees be initiated. Although agriculture would generate revenue to the government in long term basis and provide job opportunities to planters, it would not compliment the local plan that is highly focused into rapid development consisting of residential, commercial and industries. Based on the Rancangan Tempatan Majlis Perbandaran Kajang 2020, the surrounding areas of the proposed development are mainly zoned for residential development and industrial development. Besides that, establishing a plantation would lead to deterioration of water quality with increasing soil erosion due to site clearing and planting new crops in the midst of an established residential area. Agriculture can be considered as an option but it has to be implemented along with appropriate mitigation measures.

2.3.3 Option to Implement the Proposed Project

Factors supporting the intended development by Project Proponent have already been elaborated under subchapter 2.2. This development will allow an establishment of housing and commercial development within the Kajang local authority area. The proposed development seems to be an ideal choice as it is expected to bring about many benefits in the form of tangible and fiscal returns to the developer, government and the local populace. Thus, the choice to implement the proposed development shall certainly bear many positive implications towards the betterment of the environment as well as the local economy. The conversion of the oil palm plantation into a housing and commercial development in close harmony with the environment forms the eventual outcome of the proposed Project.

2.3.4 Selected Project Option

Based upon discussion as presented in subchapter 2.2 and 2.3, the most feasible option would be to go ahead with the proposed development since its beneficial aspects are most diverse that is, encompassing socio-economy, landuse compatibility and environment itself and thus, proving to be a fruitful venture for Project Proponent in the long run. Hence, it is clear that the most feasible project option is to implement the proposed development, within the framework of careful planning where environmental degradation is minimized. Comparison between the “no project” option, implementation of the housing and commercial development is summarized in Table 2.3.

EUROPASIA ENGINEERING SERVICES SDN. BHD. 2-8 Proposed Residential Development on Lot 1021, Lot 1297, Lot 2273, Lot 25 and PT 23730 (New Lot 20506), Mukim Semenyih, District of Hulu Langat, Selangor Darul Ehsan for Sime Darby Properties (Selangor) Sdn. Bhd. Table 2.3: Comparison of “No Project” Option and Implementation of the Proposed Project

No Item “No Project” Option Proposed Agriculture Activities Proposed Project Implementation

1. Landuse Oil palm and rubber trees • Agriculture that accommodates the need of • A residential development area, which is in line commodity or food source. with the objectives formulated in the Local Plan of Majlis Perbandaran Kajang. • Complement the present and future landuse proposed. 2. Income to None. • Revenue through marketability of oil palm • Higher revenues through issuance of licenses and State and rubber as major export commodity of collection of taxes from residential and Malaysia. commercial premises.

3. Employment None. • Offer employment and business through • Offer employment (i.e. labourers and plantation activities office/clerical works) and business opportunities to the local residents.

4. Housing Current state of residential units. • Current state of residential units. • It is expected to cater to exclusive residential demand units for both low and high end buyers.

5. Noise level Current state of noise level. • Current state of noise level. • Is expected to increase especially during earthworks/construction phase. • Is expected to be within the permissible limit during the operational phase.

6. Air quality Current state of air quality. • Current state of air quality. • Is expected to deteriorate especially during earthworks/construction phase. • Is expected to be within the permissible limit during the operational phase.

EUROPASIA ENGINEERING SERVICES SDN. BHD. 2-9 Proposed Residential Development on Lot 1021, Lot 1297, Lot 2273, Lot 25 and PT 23730 (New Lot 20506), Mukim Semenyih, District of Hulu Langat, Selangor Darul Ehsan for Sime Darby Properties (Selangor) Sdn. Bhd.

No Item “No Project” Option Proposed Agriculture Activities Proposed Project Implementation

7. Water quality Current state of water quality. • Water quality of receiving rivers will • Is expected to improve during operational phase deteriorate due to agriculture activities to the maintenance of the water quality. • A sewage treatment plant will be built. The discharge of the treatment plant will be designed to Standard A as per Indah Water Konsortium’s requirement. 8. Traffic Current state of number of • An increase in number of vehicles plying the • An increase in number of vehicles plying the vehicles plying the existing roads existing roads due to movement of lorries existing roads surrounding the Project Site during and its surrounding area. for plantation activities. Project’s development and operational phases.

9. Social Current state of population • Increased population, infrastructures and • Increased population, infrastructures and utilities. utilities due to establishment of plantation. i.e., workers 10. Aesthetic Current state of the land has • Plantation has minimal aesthetic value, • Aesthetic value would further decrease during the value minimal aesthetic value. earthworks/construction phase. • However, the landscaping program during the operational phase and the allocation for green area would elevate the aesthetic value.

EUROPASIA ENGINEERING SERVICES SDN. BHD. 2-10