KUALA LUMPUR (Oct 26): The Armed Forces Fund Board (LTAT) has sold a parcel of leasehold land in Ampang Hilir to the United States government for RM420 million through a tender process, Defence Minister Datuk Seri Mohamed Khaled Nordin told the Dewan Rakyat on Monday.

Winding up the Budget 2027 debate, Khaled said the disposal was part of efforts to rebalance the armed forces pension fund’s asset portfolio.

He said several parties had submitted bids for the land and the sale was in accordance with LTAT’s policies, procedures and governance requirements, as well as relevant laws.

The US government intends to build a new embassy on the land, Khaled said. 

However, ownership of the land remains with the Federal Lands Commissioner, as the transaction involved only the lease.

Earlier, Onn Abu Bakar (PH-Batu Pahat) had sought clarification on the status of the land along Jalan U Thant in Kuala Lumpur.

Onn said a land search identified the parcel as Lot 11972, measuring 50,450 sq m, with its designated use restricted to residential purposes.

He also questioned why the land had been caveated by the US government through the US Embassy on Dec 2, 2025.

Onn had sought information on whether the land had been sold, the sale price and who had approved the transaction.

He also questioned the rationale for the disposal, saying LTAT was responsible for safeguarding the welfare of armed forces personnel, including providing housing for them.

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