Govt offers Semantan Estate settlement in compensation dispute

KUALA LUMPUR: The Malaysian government has reportedly made an offer to settle a compensation dispute with the Semantan Estate (1952) Sdn Bhd. Both parties informed High Court Justice Roslan Mat Nor of the offer, with Semantan subsequently applying to postpone the hearing pending review of the offer. The government received instructions to extend the settlement offer only yesterday, as all proposals must first be approved by the finance ministry.

Senior federal counsel Nurhafizza Azizan stated that the government aims to settle the case as soon as possible, recognizing Semantan's need for time to consult with its client. However, Justice Roslan rejected the postponement application, ordering the hearing to proceed as scheduled with chartered surveyor Foo Gee Jen testifying.

The 106ha Duta Enclave, located in Kuala Lumpur, houses several government buildings and landmarks, including the National Archives and Sharia court. The dispute began in 2003 when Semantan sued the government, claiming unlawful acquisition of the land in 1956. Despite losing the initial appeal in 2009, Semantan was entitled to compensation following a Court of Appeal ruling in 2025.

The assessment of mesne profits is being heard separately before High Court judge Ahmad Shahrir Salleh.