“Malaysia’s Urban Renewal Bill to be tabled in July aims to fast-track redevelopment of ageing properties, but faces public pushback over gentrification, affordability, and consent rights.“
Kuala Lumpur, 06th May 2025, 11.32am – After more than a decade of planning, Malaysia’s long-anticipated Urban Renewal Bill (URA) is set to be tabled in Parliament this July, with the goal of revitalizing ageing neighbourhoods, increasing access to affordable housing, and upgrading public infrastructure.
But even before it reaches the Dewan Rakyat, the proposed law is stirring controversy.
PAS Youth has announced a protest for June 14 in the Klang Valley, opposing the Bill’s proposed changes — particularly the power it grants for forced redevelopment through majority consent.
Why Malaysia Needs an Urban Renewal Ac
Many of Malaysia’s urban buildings were constructed during the post-independence property boom, and are now structurally deteriorating. Despite an urgent need for redevelopment, existing laws under Section 57 of the Strata Titles Act 1985 require 100% unanimous consent from property owners before a strata property can be sold for redevelopment — a legal hurdle that has long blocked progress.
The Urban Renewal Bill seeks to lower the threshold for consent, based on the condition and age of the building, and allow majority rule in approving redevelopment.
“Even if 90% of residents support redevelopment, the project can be blocked by just 10%,” said Prof Jamalunlaili Abdullah, dean at UiTM’s Faculty of Architecture, Planning and Surveying.
“The Bill proposes a way forward — by allowing the majority to decide in such cases.”
Concerns Over Cost, Displacement, and Gentrification
While many experts support the intent of the Bill, concerns are mounting about its impact on low-income residents.
Jamalunlaili cautioned that rising property values post-redevelopment could increase property taxes and living costs, potentially forcing out existing residents.
“We’ve seen cases where long-time homeowners are priced out due to higher taxes,” he said. “The Bill should include long-term safeguards — especially for low-income families — to ensure they can afford to stay post-renewal.”
Urban planner Adjunct Professor Shuhana Shamsuddin of Taylor’s University voiced concerns that the current version of the URA appears developer-centric, unlike similar laws in other countries where independent government agencies lead urban renewal efforts.
“If developers are placed at the forefront, it breeds distrust. Urban renewal should protect identity, not erase it,” she said, citing Kampung Baru as an example of heritage threatened by high-rise development.
Residents Demand Transparency and Inclusion
Community groups have also raised red flags over the proposed majority threshold of 75% to 85% to approve redevelopment.
“Even if 1% of residents object, that decision should be respected,” said Datuk M. Ali, chairman of Save Kuala Lumpur.
“You must convince every stakeholder, not bulldoze the process. What’s the exact plan, and why rush to lower the consent threshold?”
He emphasised that any redevelopment should come with guarantees of no financial loss and the preservation of community identity.
Safeguards Against Abuse
Despite the concerns, experts say the Bill will still have to comply with local and structure plans, which restrict redevelopment based on zoning laws, density limits, and plot ratios.
“Projects must adhere to local zoning — as seen in the Taman Rimba Kiara case,” Jamalunlaili noted. “That acts as a natural safeguard against overdevelopment or misuse of the URA.”
Government Promises Fair Compensation and Protection
Prime Minister Datuk Seri Anwar Ibrahim has sought to reassure the public, stating that the Urban Renewal Bill will uphold the rights and dignity of property owners, especially those in the Malay urban poor community.
He said the law will offer fair and significantly higher compensation, aiming to improve the quality of life for long-time residents who have lived for decades in outdated, overcrowded housing.
“This is not about displacement,” said Anwar. “It’s about restoring dignity through better, safer living environments — without sacrificing community roots.”
