KUALA LUMPUR, Aug 28 — The Housing and Local Government Ministry (KPKT) will amend the Urban Renewal Bill (PSB), including provisions related to the consent threshold for participation in urban renewal projects.
Its minister Nga Kor Ming said the amendment to Clause 19 was made to respect and accommodate the views of the Dewan Rakyat Special Select Committee on Infrastructure, Transport and Communications, following a special discussion on August 21.
He said the consent threshold would be standardised at 80 per cent regardless of the age of the building, noting that the increase from the current 75 per cent is reasonable to provide sufficient consideration for implementing urban renewal projects with integrity and fairness to all parties involved.
“We took into account ownership issues within the remaining 20 per cent of residents, including cases where property ownership has been pledged or mortgaged for financial loans, properties facing non-performing loans from financial institutions, ownership titles that have not or have yet to be issued to buyers, as well as cases where original owners cannot be traced,” he said.
Nga said this while tabling the bill for its second reading in the Dewan Rakyat today.
However, the bill will only be debated at the next session.
Nga said the ministry will also amend Clause 18, relating to reports on proposed urban renewal projects.
He said the amendment would ensure demographic information of the local community in project areas is duly considered by both federal and state executive committees, so implementation is carried out in an orderly manner and drastic shifts in population composition are avoided.
“KPKT is sensitive to public concerns over demographic changes in areas undergoing urban renewal. As such, this clause will be amended accordingly to safeguard the local demographic profile, subject to further details to be finalised with the Attorney-General’s Chambers,” he said.
Nga said the drafting of the bill went through a transparent process, including the approval of the Urban Renewal Implementation Guidelines in 2023, endorsement from the National Council for Local Government, and several engagements with the Special Select Committee on Infrastructure, Transport and Communications.
He clarified that areas identified for urban renewal projects are also proposed and gazetted by state governments themselves, not by the federal government through the Town and Country Planning Department (PLANMalaysia).
He said for example, the Terengganu government has identified 22 sites, while the Kedah government has identified 55 sites with potential for urban renewal.
He said refurbishing buildings and key utilities is crucial, as the lifespan of infrastructure such as lifts, water tanks, electrical wiring, piping systems, sewers and gas supply networks deteriorates over time.
Nga warned that the decline in the quality of such infrastructure would become critical if building management corporations are weak and fail to carry out proper maintenance, even in relatively new buildings.
