By Danial Dzulkifly
SHAH ALAM, March 24 — The Urban Renewal Act (URA) has sparked debate on the future of Malaysia’s ageing urban landscape, with proponents arguing it presents an opportunity to revitalise dilapidated townships, while critics warn of the risks of gentrification and displacement.
The subject has become increasingly contentious, prompting even Prime Minister Datuk Seri Anwar Ibrahim to repeatedly clarify that the proposed URA does not seek to sideline the Malay and Bumiputera communities in urban development.
He reiterated that no homeowners or landowners would be forcibly evicted, a misconception frequently raised by critics of the URA.
One of the key areas identified for the URA’s pilot implementation is the Klang Valley, especially in older townships such as Petaling Jaya, where infrastructure has struggled to keep pace with urban growth.
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Kampung Tunku assemblyman Lim Yi Wei speaks to Media Selangor at the Selangor Saring programme in her constituency, at the SS3 Petaling Jaya City Council multipurpose hall, on August 3, 2024. — Picture by AHMAD ZAKKI JILAN/MEDIA SELANGOR[/caption]
Kampung Tunku assemblyman Lim Yi Wei described the URA as a necessary legislative framework to address the complexities of redevelopment. Many urban areas, she noted, suffer from outdated infrastructure that can no longer support present-day density, let alone future expansion.
The URA, she argued, would provide much-needed structure to the redevelopment process by balancing property rights with the realities of urban modernisation.
“Townships like Petaling Jaya, which started as a satellite town to Kuala Lumpur, have now grown into cities of their own. However, the ability of local authorities to upgrade neighbourhoods is constrained by existing infrastructure limitations, such as narrow roads, inadequate drainage, and the lack of accessibility to public amenities,” she said.
Lim acknowledged that the consent threshold for redevelopment remains a contentious issue, but pointed out that similar tiered thresholds exist in cities such as Singapore, Hong Kong, Japan, and Germany.
Under the URA, the consent threshold will be lowered to an agreement rate of 75 per cent for buildings over 30 years old, 80 per cent for buildings under 30 years old, and 51 per cent for abandoned properties.
The challenge, she said, lies in setting a reasonable threshold that prevents unnecessary roadblocks to renewal while safeguarding property owners’ rights.
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Bukit Gasing assemblyman R. Rajiv looks over a blueprint for the Special Area Plan in Petaling Jaya on May 11, 2023. — Handout by BUKIT GASING STATE CONSTITUENCY SERVICE CENTRE[/caption]
Bukit Gasing assemblyman R. Rajiv echoed these sentiments, emphasising that the URA could resolve longstanding issues related to the ownership of dilapidated buildings.
Many of these structures, he said, face inheritance disputes or have been abandoned due to difficulties in tracing rightful owners.
If implemented properly, he said, the URA could drive up property values for People’s Housing Projects (PPR) and ensure fair compensation, benefiting the urban poor across all racial demographics.
“When there’s no way out, some of these flats have little to no value, ranging between RM50,000 and RM80,000.
“However, with URA and the possibility of redevelopment, their resale value could appreciate significantly, bringing them closer to their fair market price,’’ he said when contacted.
However, Rajiv stressed the importance of securing a supermajority approval for redevelopment projects, despite the proposed reduction in consent thresholds, ensuring property owners’ rights remain paramount in any renewal process.
Proponents of the act often highlight successful projects such as the redevelopment of Razak Mansion in Sungai Besi as proof of its potential benefits.
However, there have also been failed attempts, such as the Desa Kudalari condominium redevelopment, which collapsed due to the inability to secure proper consent from the owners.
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Kota Damansara assemblyman Izuan Kasim takes his oath of office during a special sitting at the Selangor State Legislative Assembly in Shah Alam on September 19, 2023. — Picture via FACEBOOK/IZUAN KASIM[/caption]
Kota Damansara assemblyman Izuan Kasim offered a broader perspective on urban renewal, stressing that the act should not be viewed solely through the lens of land acquisition.
Instead, he said, the primary objective is to facilitate house-for-house schemes rather than displacing residents.
“Many people misunderstand urban redevelopment, assuming it means eviction, but that’s not the case.
“For example, in Kota Damansara alone, there are four abandoned housing projects that cannot be developed as the government lacks the funds to utilise the Land Acquisition Act,’’ he said, adding that across Malaysia, there are 534 such cases, including shopping centres.
Izuan also argued that urban renewal could address socio-economic challenges, particularly in overcrowded low-cost housing areas.
He pointed out that poor living conditions, where multiple individuals share a single room, often affect education outcomes and limit social mobility.
“By integrating economic spaces such as food stalls and small businesses into redevelopment plans, urban renewal could simultaneously create job opportunities and improve residents’ quality of life,” he said.
Crucially, he emphasised the need for a dedicated oversight committee to implement the URA, rather than leaving decision-making solely to local authorities, which currently lack the legal framework to enforce large-scale urban renewal initiatives.
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Petaling Jaya MP Lee Chean Chung delivers a speech after signing a deal on first- and last-mile connectivity with Universiti Tunku Abdul Rahman on behalf of the Petaling Jaya City Council on June 5, 2024. — Picture via FACEBOOK/LEE CHEAN CHUNG[/caption]
Yet, while supporters see the URA as a step towards a more structured redevelopment process, some lawmakers, such as Petaling Jaya MP Lee Chean Chung, have raised concerns about its implications.
Lee warned the act might introduce new tensions, particularly in the form of gentrification, displacement of lower-income residents, and the erosion of existing community structures.
“True urban regeneration should take a more holistic approach, with redevelopment as a last resort. The threshold for redevelopment should remain high, ideally above 85 per cent or even 90 per cent, to protect property owners and ensure fair consensus,” he said.
