The government disagrees with the leasing proposal to develop areas in Kampung Baru in the federal capital as it could jeopardise the rights of the Malays, Prime Minister Anwar Ibrahim said today.

Anwar, who is also the finance minister, said the proposal to bring a private company to develop the area would adversely affect the interests of the Malays and was not acceptable.

He also said that more space was needed for a detailed study of the proposal.

"We will discuss with the former federal territories minister and ensure that the development proceeds smoothly and that the interests of the Malay community in Kampung Baru are protected.

"A lease for 60, 99 years will create anxiety among the Malays. I cannot accept the leasing proposal. Give me space to review and obtain the views of the local community," he said during the Prime Minister’s Question and Answer session at the Dewan Rakyat.

Anwar was responding to a question by Azli Yusof (PH-Shah Alam) on whether the government intends to proceed with the development of Kampung Baru in line with the target of Kuala Lumpur Smart City 2030.

The prime minister said on the question of Kampung Baru’s development that each approach or move must be based on the principle of safeguarding the interests of the Malay reserve areas in Kuala Lumpur, even though the decision may take a long time.

To a supplementary question by Ismail Abd Muttalib (PN-Maran) regarding the government's guarantee of implementing promises related to the development of Kampung Baru, Anwar insisted that measures had been taken.

"I have given assurances, and have even postponed some programmes that I am not sure will defend the rights of the Malays there... action has been taken.

"In terms of housing, stalls and also the smart city (project), all were carried out without affecting (Malay rights). I have made the decision and the officers are also aware.

"All previous decisions that are in line with this position (protecting Malay rights) will continue, but policies that affect the framework of policies (protecting Malay rights) are not accepted... we will wait and I will prove it," he said.