Padungan assemblyman Wong King Wei said he had fears that the state government would allow a hotel to be built on the land, on which now stand low-cost flats and a fire station.
The lease on the government land, covering a total of 14 acres, is set to expire on May 25 next year.
He said the South Kuching city council had not taken any action about the two parcels of valuable land.
The land covers some two dozen Kuching Municipal Council flats and a fire station, adjacent to the city’s landmark cat statute in Padungan, and within walking distance of the Kuching Waterfront, surrounded by commercial centres and hotels.
“A prudent or normal proprietor would know to renew the land at least two to three years before the expiry,” he said. However the city council had not done anything.
The land was alienated by the colonial government to the municipal council in 1957. Currently, there are 22 blocks of flats and other residential buildings containing 531 housing units meant for the urban poor.
The flats are let out to low income families at a monthly rent of RM110 for a flat to RM179 for a terrace house.
He said he had found that a number of units were vacant, although there was a very long waiting list to rent the flats, stretching back several years. “Why are there vacant units? Is it because of the expectation that the KMC flats will be demolished and the tenants evicted?” Wong said.
Wong said he had been informed that private firms had been carrying out valuations on the land, indicating interest in obtaining the land for commercial purposes.
He speculated that the government would regain possession after the lease expired and alienate the land to a particular group of people for private development.
“My fear is that they will kick out the tenants, level the whole place and turn the old fire station into a big hotel.”