Summary 

  • PAS Youth criticises the RM4 billion Kota Madani project as an elitist venture that risks worsening national debt and bypassing fiscal transparency.

  • Its chief, Afnan Hamimi Taib Azamudden, questions the use of a private finance initiative model and involvement of a Petronas subsidiary, warning against turning the national oil firm into a “political ATM”.

  • He urges the government to suspend the project, table a full cost-benefit analysis in Parliament, and prioritise essential public services.


PAS Youth has condemned Putrajaya’s Kota Madani development project, slamming it as an “elitist” initiative which could place further financial strain on the nation amid subsidy cuts and a worsening fiscal deficit.

In reminding the government that the nation’s future does not lie in the prime minister’s “vanity symbols”, PAS Youth chief Afnan Hamimi Taib Azamudden criticised the government for “irresponsibly” taking on new commitments.

He claimed that while the project is said to have an estimated total cost of RM4 billion, the government quarters project based in Putrajaya could carry a higher financial commitment if financed through a private finance initiative.

Noting that the private finance initiative model has long been criticised for obscuring the government’s actual debt burden from the country’s official fiscal records, he pressed the government to address the actual cost of the project, including annual commitments over the next 20 to 25 years.

“What returns can the people expect, particularly the younger generation who will inherit the burden of this debt?

“Why is such a lavish project being prioritised while allocations for education, healthcare, food security, and social welfare continue to be cut?” Afnan questioned in a statement today.

‘Petronas is not an ATM’

He also took issue with the involvement of a Petronas subsidiary, Putrajaya Holdings Sdn Bhd, as the main driver of the project, at a time when the national oil and gas firm is seeing declining profits, workforce reductions, and growing investment pressure in various sectors.

“The government should be protecting Petronas, not turning the company into a ‘political ATM’ to bankroll elitist projects that do not yield fair commercial returns,” Afnan said.

Calling for a suspension of the government quarters project based in Putrajaya, the Alor Setar MP said a comprehensive cost-benefit analysis of the project should be tabled in Parliament. 

“If the government insists on pushing forward (with the project), then it becomes clear that the real agenda behind Kota Madani is not national progress, but the pursuit of political ambition and the legacy of a certain individual,” he asserted.

Build, lease, maintain model

On June 26, Prime Minister Anwar Ibrahim launched the Kota Madani project, a major smart city initiative designed to be people-centric and environmentally sustainable.

Prime Minister Anwar Ibrahim launching the Kota Madani project

It was previously reported that the project is based on a build, lease, maintain, and transfer concept, which will see the government not directly bearing maintenance costs of the quarters, but paying through a long-term lease.

The first phase of development for the project covering 41.28 hectares in Precinct 19 is scheduled to begin in September and is expected to be completed by the end of 2027.

It will feature 10,000 high-density vertical residential units for more than 30,000 residents.