Prime Minister Najib Razak today announced an allocation of RM20 million from the 1Malaysia Development Board to pay for the renovation of the Kampung Baru Mosque.

"I am saddened to see skyscrapers grow all around the area, like mushrooms after the rain.

"Yet conditions in Kampung Baru are almost like a squatter settlement. It's status is not that of a squatter area, but it is seems like one," said Najib, expressing his concern.

As such, the prime minister announced the allocation for the development of what is termed an 'iconic' mosque as the first step to developing the largely Malay area.

The Prime Minister said the possibility of changing the status of land to commercial zoning and increase in the plot ratio will contribute towards increasing the value of properties in Kg Baru.

Currently the land in Kg Baru is categorise Malay reserve and land use is agriculture.