KOTA KINABALU, Oct 8 — Residents of Kampung Sembulan Tengah, the historic water village now viewed as an eyesore, are steadfast in their demands for compensation or alternative housing before vacating their homes.

After a second dialogue held today, Mayor Datuk Sabin Samitah announced that the previous eviction notice would be suspended while he sends the lot owners’ demands to the state Cabinet for consideration.

"Their proposals include improved compensation based on specific mechanisms, addressing both active leases and those that have lapsed,” Sabin said.

He added that, in the meantime, residents were accepting of the Kota Kinabalu City Hall’s (DBKK) plans to demolish illegal structures, including squatter homes and unauthorised extensions in the area.

"For now, they agree with DBKK’s plan to remove illegal structures, as numerous squatter houses have been identified. There are also homes that have expanded into extra space and shops that are considered illegal,” he said.

Sabin further noted that DBKK would collaborate with other agencies to investigate tenancy issues, as some homes in the area may have been rented out illegally, including to undocumented migrants.

"We want to understand how these rental agreements were established, as some property owners claim they no longer reside in the area and were unaware their homes were being rented out,” he added.

He indicated that this situation comprised approximately 15 per cent, or around 20 to 30 structures, of over 200 houses in the area.

"This could happen at any time,” he warned.

Residents of Sembulan water village, also known as Sembulan Tengah, expressed their outrage after receiving an eviction notice on September 19.

They engaged in a heated dialogue with DBKK on September 22, which led to a more formal meeting today involving other agencies, such as the Land and Survey Department and the Attorney General’s Chambers.

The water village originated around 1960 as part of the British Crown Colony’s Jesselton Town Board Low-Cost Housing Scheme, offering temporary leases for approximately 60 years, most of which expired after 2010.

Some settlers extended their occupation through Temporary Occupation Licences (TOL), while others were unable to renew theirs as the area was designated for the Sembulan Urban Renewal Scheme.

Despite its prime location, the water village is perceived as a slum by many, attributed to the dilapidated condition of the homes, poor sewerage and waste management, and polluted water.

Villagers have requested improved compensation, given the area’s proximity to urban facilities and infrastructure, including shopping malls, a five-star resort, and the central business district within walking distance.

Osman Omar Khan, chairman of the Kampung Sembulan Lama Residents and Welfare Association, previously stated that they wanted their leases renewed and the redevelopment scheme cancelled. However, they expressed openness to development, provided they receive "fair” compensation.

"We are at least pleased that we had this dialogue. We welcome the makeover, but as landowners, we believe we ought to be treated fairly.

"For now, we will trust the mayor and the good judgement of the chief minister,” he said.