UTM-IBIMA INTERNATIONAL REAL ESTATE CONFERENCE 2012 (INTEREC 2012)

BROWNFIELD REDEVELOPMENT: AN EFFECTIVE MEASURE OF

IMPLEMENTATION

Robiah binti Suratman1, Nurlaila binti Ali

Department of Land Administration and Development

Faculty of Geoinformation and Real Estate
Universiti Teknologi Malaysia, 81310 Skudai, Johor, Malaysia.
Email: robiah@utm.my1

ABSTRACT
Brownfield redevelopment is a still new field in Malaysia. The main reason why the
Brownfield development should be given priority is because it is a form of solution to the
shortage of land, especially in the city for a compact city. Brownfield redevelopment is said
also create employment opportunities to them. Redevelopment of Brownfield areas should be
encouraged since it will reduce the impact in terms of exploration of new areas for new
development. There are three key actors in the development of Brownfield areas; they consist
of the developers, the authorities and the buyer. Brownfield redevelopment has a high
demand at present time because of the scarcity of land. Most of Brownfield areas are located
in urban and developed areas. The developer is keen on develop Brownfield areas, but they
faced financial problems in doing so. This is because redevelopment of Brownfield areas
involves high costs as the first step in clearing the site. In this study, the concept of
redevelopment the role of Local Authority (LA) and also the regulation involve will be
studied. In addition, the perspective and understanding of LA as one of the agencies on the
redevelopment of Brownfield areas, particularly in Johor Bahru will be examined the
measure implemented in Brownfield redevelopment. Redevelopment of Brownfield will be
more viable if the parties involve, especially LA has a policy encourage the redevelopment
of Brownfield to make it more effective, and it will also change the perspective of
Brownfield redevelopment.

Keywords: Brownfield redevelopment, Local Authority (LA), understanding, perspective,

effective

INTRODUCTION
Brownfield Area can be defined as an area that has been abandoned to do neglect or
obsolete development structure or development is as that are not completed and abandoned
("Protecting Public Health," 2010). This area may be contaminated or not contaminated.
Brownfield land areas also include private land and government land. Although the issue of
Brownfield redevelopment has been raised since the year 2008, but there are still many areas
in Johor Bahru that are not developed. Therefore, a draft of a guideline has been come out by
the Town and Country Planning Department (TCPD) of Peninsular Malaysia in order the
government encourages the redevelopment of Brownfield.
Unfortunately, the Brownfield area is not attractive developers because of too many
uncertainties, such as in terms of applicable legislation, and it takes a high cost to redevelop it
(Wedding & Crawford-Brown, 2006). Besides, the developer needs to apply for
redevelopment and waiting for an approval process of new projects, and also the process of
redevelop takes time to get clearance. This leads many developers are not keen on develop
this area. Therefore, this study will explain the concept of Brownfield related to the
regulations, in order to get a person whom responsibility in Brownfield redevelopment; the
study will be identifying the role of LA. Lastly, the study also will examine the perspective of

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UTM-IBIMA INTERNATIONAL REAL ESTATE CONFERENCE 2012 (INTEREC 2012)

LA towards Brownfield redevelopment in order to get an effective measure of implementation

of Brownfield redevelopment.

OVERVIEW OF BROWNFIELD (KEMAYAN CITY)

According to definition by Town and Country Planning Department (TNCP),
Brownfield is an area that has been abandoned to do neglect or obsolete development
structure place. Brownfield area is a different phenomenon to a new area that has never been
developed. It is also can be government land and private land. Brownfield area usually
requires a large amount of repair work before it can be redeveloped (Yoon, 2010). In this
study, it was focused on the study area in Kemayan City, Johor Bahru. This is because
according to the respondents, Kemayan City is one of the Brownfield areas that are
categorized as a category D. The Department of Town and Country Planning (TNCP) has
been come out with the Brownfield Category in the draft Guideline for each area and it can be
seen below:

Picture Type of Brownfield Category Example

Mines Resort City, Seri
Former mining or quarrying A Kembangan, Sunway
Pyramid

Padang Golf Tok

Solid waste disposal sites that have full/ B Jembal, Terengganu
no longer used on a permanent basis

The factory/ business/ residential/ Jaya One, Petaling

institution that has been left more than C Jaya, Selangor, Jerejak
10 years Resort & Spa

Development projects uncompleted and

abandoned in the implementation of the D Queensbay Mall
development of more than 10 years

Building/ row of building lots that have

been completed but abandoned more E -
than 10 years

The former depot/ station public F Kuala Lumpur Sentral

transport, infrastructure and utilities

The concepts of Brownfield are the area that has been developed or have been
abandoned almost completed but abandoned in the development of the implementation period
exceeding 10 years. As a result of the projects that are abandoned, the area has been
contaminated from various aspects such as views and economic aspects (FERBER &

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UTM-IBIMA INTERNATIONAL REAL ESTATE CONFERENCE 2012 (INTEREC 2012)

GRIMSKI, 2002). All the characteristics are found in the building of Kemayan City, Johor
Bahru. The building is classified as a Brownfield area because this area has been abandoned
over 10 years, and the building was left abandoned before it was completed nearly 90 percent
(Chun-Yang & Talib, April 2006). This building is considered polluted in terms of economic,
social and environmental issues. To ensure that this abandoned building and restored can be
developed in parallel with the development of Iskandar Malaysia, the various parties,
including Majlis Bandaraya Johor Bahru (MBJB) help find a solution to this matter
("Memulihkan bangunan terbengkalai ", 2010). The abandoned of Kemayan City since a few
years ago would be restored under a new developer manager (Shahroni, July 2010). For
redevelopment plans of Kemayan City, it will be redeveloped into a contemporary shopping
center and hotel, and it is known as the B8 shopping center began in the middle of 2011. It is
expected to be completed by the end of 2013. However, there are some problems that unable
to be avoided, especially in terms of economic, Kemayan City redevelopment unable to
conduct according to the project time frame that has been proposed (Pembangunan Semula
Kemayan City Johor Bahru 2011).
The local authorities are an important pillar in Brownfield redevelopment in areas
within their jurisdiction at the local level. Local authorities must monitor Brownfield
redevelopment projects through the Structure Plan and Local Plan, monitor and advice on
Brownfield redevelopment projects involving aspects of architecture, urban design and
heritage and provide an inventory of Brownfield areas ("National Physical Planning
Framework,"). Among the major departments in the organization of LA that involved in
Brownfield redevelopment are planning division, building division, the environment division
and engineering division.
Based on observation in the site, the redevelopment of the area will become more
viable and can provide many benefits to the people who live near the site, especially in
Skudai, Johor Bahru. This is because the road through the area Kemayan City is a main road,
and it focuses of Johor Bahru city, North South Expressway, Senai Airport, Universiti
Teknologi Malaysia, Taman Universiti, and more.

CONSTRAINTS AND BARRIERS IN BROWNFIELD REDEVELOPMENT

Costing is one of the barriers in Brownfield redevelopment (Pediaditi, Wehrmeyer, &
Burmingham, 2006). High land prices, but still viable to continue the application for
development so that it can be sold due to the enhancement land prices nowadays and difficulty
to find the site to fold under Brownfield category which appropriate to redevelop. Although it
is a high development cost, profits are still available. This is because the excellent economy is
the major factor for successful development. Economic is generated for growth in order to
convince people to invest (Casler, et al., 2010). Besides, the high cost is needed to recovery
the land and need to be done properly and effectively to ensure that does not cause pollution
problems in the future.
The problem of ownership also is the constraint in Brownfield redevelopment. For
example, the commercial building, Kemayan City in Johor Bahru has a different title. It is
because the original owner wanted to give the strata title of each parcel in the building. Thus,
to redevelop the area, it is must obtain the consent of the parcel owners, but it is not easy to
get an agreement from all parties to sell the title. Different land ownership is the constraint to
the Brownfield redevelopment in land legislation.
This interview is conducted to know the awareness of LA regarding the Kemayan City
is one of the Brownfield areas. The criteria can be seen in terms of the period of Kemayan
City area that has left more than 10 years and was 90 percent completed. From the viewpoint
of the respondents, Brownfield area is very potential if developed. By doing feasibility study,

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the redevelopment process will be more probable not only to local residents but also will give
a good image to Johor and Malaysia. However, the main obstacle is the owner of the land
itself if this Brownfield land is in private ownership. The other obstacle is the financial
aspects and tax arrears. Although the various incentives offered to the developers who want to
redevelop the Brownfield area, but to clean up the sites, it needs a high cost to redevelop it so
that there’s no longer a problem in the future, especially in terms of building structure.
They will be a positive effect if redevelop Kemayan City, Johor Bahru. It can reduce
anti-social and unhealthy activities in this neglected area and also reduce environmental
pollution. Besides, if Kemayan City Review developed a positive impact in terms of revenue
to the government such as taxes, investment and tourism. Furthermore, if Kemayan City
redevelops, it can give a good view because it is beside the main road towards the city of
Johor Bahru.

METHODOLOGY

Materials
In order to complete the findings obtained, the qualitative methods for data analysis
have been used. There are three objectives of the study was designed to ensure that the main
aim of this paper is achieved. The first objective is to understand the concept of Brownfield
and regulations, and the second objective was to identify the role of LA that is MBJB in
Brownfield redevelopment. Both objectives were accomplished through a general of the
literature.
While the third objective is the perspective of local authorities in Brownfield
redevelopment in Johor Bahru. To achieve this third objective, the data analysis based on
interviews with local authorities that MBJB to seek views on the concept study. The data will
be analyzed and assessed further to produce research findings, and a detailed explanation will
be described.

THE LOCAL AUTHORITIES UNDERSTANDING ON THE CONCEPT OF

BROWNFIELD
The data are categorized according to several divisions to assess the perspective
among the parties regarding the concept of Brownfield in Johor Bahru in order to achieve the
goals and objectives in this research.
The definition of Brownfield is the area that has been developed previously but
abandoned or neglected or has a development structure obsolete or development areas that are
not completed and abandoned more than 10 years ("Protecting Public Health," 2010). This
area may be contaminated or not contaminated. Brownfield land area also includes the state
land or private land. From interviews about the definition of government officials interviewed
are shown in the table below:

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Table 1.1: Analysis of the Concept Definition of Government Officials

No. Officers Answers
1. Assisstant Engineer Land or premises which left more than 10 years old
Building Division and has developed
2. Assisstant Planning Officer Do not know
Planning divison
3. Assistant Public Health Do not know
Health and Environment
Division
4. Chief Assisstant Engineer Do not know
Building Division

Based on the definition and the answers given by government officers are clear and
obvious that, in general, not all of them understands the true definition of the concept and
Brownfield redevelopment. The respondents understood the concept of Brownfield (Doick,
Sellers, Castan-Broto, & Silverthorne, 2009). There are differences between the concept of
Brownfield and abandoned projects. Respondents gave answers in which they have
understood the differences between the two. Each of the respondents has shown their
understanding of these differences in terms of the characteristics of Brownfield concept itself.

Table 1.2: Analysis Of the Differentiate Between Brownfield and Abandoned Project
No. Officers Answers
1. Assisstant Engineer Yes, the contrast is in terms of criteria to determine a
Building Division Brownfield area, especially in terms of age of the building
itself.
2. Assisstant Planning Yes, the contrast is in terms of age and previous
Officer development has been completed 90 per cent.
Planning divison
3. Assistant Public Health Yes, in terms of age and previous development has
Health and Environment completed 90 percent and has delayed shrubs bring
Division unhealthy symptoms.
4. Chief Assisstant Engineer Yes, in terms of age and previous development has been
Building Division completed 90 per cent.

Based on the interviews conducted, the Brownfield is different from the abandoned
project is essentially the same category though. After explaining the actual concept of
Brownfield, the respondents then know about the Brownfield in terms of characteristic that
the area has been abandoned over 10 years.

LOCAL PERSPECTIVE ON THE CONCEPT OF BROWNFIELD DEVELOPMENT

AREA
Based on the research, the third objective is the perspective of LA in Johor Bahru on a
Brownfield redevelopment concept. The question had to arise here are what is the perspective
among the LA through this concept of Brownfield? Is there any guideline for this Brownfield
redevelopment? The respondents support the existence of Brownfield redevelopment concept

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UTM-IBIMA INTERNATIONAL REAL ESTATE CONFERENCE 2012 (INTEREC 2012)

because of emphasis towards the redevelopment of the abandoned more viable in terms of
economics.
If there is a guideline, it will be adequate. So far, it is only a draft guideline. Therefore,
it is lacked of knowledge about Brownfield among of these parties to redevelop it (Bakar,
Raml, Jamaludin, & Adamy, 2010). This would make the perspective of Brownfield is in
lower level. Thus, there is no effective in this implementation of Brownfield redevelopment.

RESULTS AND DISCUSSION

In these findings, there are several proposals that were selected to be applied to the
study area so that Brownfield redevelopment in Johor in particular can be carried out in
accordance with rules and guidelines for real in the future. In terms of economic impact,
Brownfield redevelopment efforts and idle land will yield higher tax revenues. It, furthermore,
can generate employment and increase the productivity of land. Part of the redevelopment
project, moreover, creates other economic activities and thus enhances the competitiveness
and investment for a town.
While the government incentives as well as in terms of giving a discount in terms of
development, the government should also give a discount for paying taxes to the new
developer before the development of Brownfield areas. Brownfield and derelict land area is
liability on the economy of the land owned by the government and private sectors. If not
developed, Brownfield area has no profitable value that can generate revenue and income
through economic activities, whether for government or private parties. The effect will bring
down property values and damage the market value of surrounding properties.
In addition, they also suggested a particular committee established to oversee, manage
and monitor the Brownfield redevelopment process and manage the provision of unusual
funds. It is hoped that this research base, can provide guidance and awareness to the parties
involved in the whole concept of Brownfield redevelopment.

ACKNOWLEDGEMENT
The authors wished to acknowledge the lecturers of Land Administration and
Development in Universiti Teknologi Malaysia that has help to this study. The author would
like to extend her special thanks to those from Majlis Bandaraya Johor Bahru (MBJB) for
guidance on the current state of this research. Additionally, the author likes to thank to all who
involved and other responded to the surveys or provided additional important feedback.

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