Urban renewal is about preserving the people, culture and communities that give cities their soul and not just redeveloping buildings.

By Pavither Sidhu

The Urban Renewal Act (URA) is one of the most important and much-needed pieces of legislation in recent years. The intent is widely acknowledged as necessary to ensure city growth, safety and economic vibrancy and tabling the Bill will lead to a modernisation of Malaysia’s urban landscape and further attract investment. 

Malaysia’s key urban issue is the redevelopment of ageing, unsafe and abandoned buildings facing structural issues, overcrowding and outdated facilities. Transforming and creating structures as well as areas into livable spaces promotes healthier, more resilient and inclusive communities and cities. 

The current Bill, in its present form, is under scrutiny because it may be too heavily skewed toward lawmakers and stakeholders, offering insufficient clarity for the people affected by urban redevelopment. Advocates, on the other hand, are calling for stronger measures such as protection against those who could face displacement, relocation support, transitional rent control and mediation to resolve disputes. 

A shared vision for change 

If shaped thoughtfully, the URA has the potential to become a game-changing framework for Malaysia’s cities. To achieve this, several principles must guide its implementation. To begin with, it has to be addressed with the people first. 

The Bill has to factor in whether residents or communities affected by redevelopment are consulted, protected from displacement, guaranteed support in the form of relocation funds, rehousing rights and offered fair compensation or relocation support, where needed. 

The next principle is to adopt a community integration model where benefits from the renewal should enhance and preserve the neighbourhood’s social and cultural heritage. 

Many of Malaysia’s urban centres are home to buildings, businesses and traditions that form part of the nation’s living heritage. The Bill could mandate heritage impact assessments before approvals, incentivise adaptive reuse and protect intangible cultural assets such as long-running kopitiams and community temples.

Perhaps the biggest risk of urban renewal is gentrification. Without safeguards, new developments could price out the very communities they are meant to uplift. A requirement for a portion of affordable units in each project, coupled with mixed housing models, would help cities retain diversity. 

The most crucial thing to be taken into effect is transparency and trust. This has to be taken seriously, particularly clear guidelines on decision-making, valuation and dispute resolution are done in good faith. 

Residents and those affected deserve to see impact assessments, attend public hearings and have access to independent mediation if any disputes arise. Renewal must be measured not just by the completion of projects, but by whether communities remain intact and lives are improved in the long run.

Decision-making should be open, with proper channels for objection and dispute resolution among stakeholders and homeowners. Furthermore, benefits from the redevelopment should be equitably distributed fairly among developers, landowners and residents.

Power of the people

Groups representing homeowners, resident associations, civil groups, policy makers and stakeholders have been actively coming together, opposing the URA being tabled and calling for a review. 

Among the key debates and concerns about the Bill are:

• The consent thresholds may be too low, putting minority property owners at risk of forced land acquisition.
• The lack of social safeguards could lead to the displacement of homeowners, threatening social unity.
• Insufficient state oversight could allow the process to be skewed too heavily in favour of profit-making, at the expense of residents.

One of the most pressing disapproval is that the consent thresholds for redevelopment projects are set too low. Critics argue that minority owners risk being forced into giving up their properties, raising fears of dispossession and mistrust within the community. 

Recent developments show that the government is listening. The consent threshold for redevelopment has now been set at a uniform 80%, replacing earlier tiers. Planners must also consider demographic data when reviewing projects, ensuring that neighbourhood character and community balance are at least considered in decision-making.

Reflecting stronger protection for homeowners, observers are even suggesting that thresholds to redevelop could be at least 90% for newer buildings and 85% for older ones, where people’s needs are placed at the centre of planning.

Additionally, the government is assuring that affected owners will be offered replacement homes of equal or higher value. The renewal projects will be guided by public interest, stressing that people will not be left behind in the redevelopment process. Meanwhile, Prime Minister Datuk Seri Anwar Ibrahim said that the Bill is about tackling urban decay, not threatening rights. His openness to amendments is encouraging. 

A sigh of relief for some parties is that the Bill’s second reading has been deferred to October, giving more time to refine its provisions in response to public concerns.

What is needed now is to ensure that the URA is a tool to modernise cities while keeping communities intact. Policymakers now carry the responsibility of ensuring that urban renewal truly means progress for the people. StarProperty would like to hear your views and thoughts on this. Write to us at editor@starproperty.my

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