PETALING JAYA: Malaysia is not ready for the Urban Renewal Act (URA) in its current form as it is too sensitive, says Federation of Malaysian Consumers Associations (Fomca) chief executive officer Dr T. Saravanan.
“The Act is too far-reaching, and too dangerous to be rushed into Parliament without a fundamental revamp and genuine stakeholder consultation. At stake are the very homes, livelihoods, and security of Malaysian families,” he said.
Saravanan added that safeguards must be put in place to protect homeowners, as developers have been approaching residents with half-truths and promises that are either misleading or incomplete or applying pressure to sign consent documents.
“For most Malaysians, a home is their largest lifetime investment, built through decades of hard work and representing priceless family memories. To expose citizens to such risks without strong safeguards is unacceptable,” he added.
Saravanan then said that if the URA is introduced in its current state, it will tilt the balance dangerously in favour of developers, effectively becoming a developers’ charter instead of a people’s charter.
“Fomca insists that a 95% consent threshold is the only acceptable safeguard. Any lower threshold — whether 75 or 80% — would open the door to forced displacement,” he added.
Saravanan said that a 95% safeguard ensures that redevelopment can only proceed with overwhelming community support and compels developers to negotiate fairly instead of forcing through projects with a slim majority.
“Any credible URA must guarantee fundamental rights for homeowners. Families must have access to clear and accurate information in languages they understand, not sales pitches masquerading as proposals,” he added.
Saravanan then said that consent must be verified independently and transparently, free from coercion.
“Disputes must be resolved through independent tribunals with equal representation, and legal aid must be made available so that no homeowner is left voiceless,” he added.
“Compensation must reflect not just market value but also relocation costs and the emotional loss of uprooting families. Above all, dignity and non-coercion must be guaranteed,” said Saravanan.
He then said that urban renewal should be about empowering communities and not displacing them.
“Urban renewal should preserve social bonds, not tear them apart. It should strengthen trust between the people and the government, not erode it,” he said.
“If the URA is rushed through Parliament in its present form, it risks leaving ordinary citizens exposed to exploitation and injustice, undermining public faith in both government and law,” added Saravanan.
