Keeping with the times: The Urban Renewal Bill, tabled for first reading by Nga (pic), sets out a framework for redevelopment, regeneration and revitalisation projects. — Bernama
THE government’s bid to rejuvenate ageing buildings and underutilised spaces through the proposed Urban Renewal Act has been questioned by MPs, who are urging that its second reading be delayed to address concerns over consent thresholds and the risk of gentrification.
The Urban Renewal Bill, tabled for first reading by Housing and Local Government Minister Nga Kor Ming in the Dewan Rakyat yesterday, sets out a framework for redevelopment, regeneration and revitalisation projects.
It provides for the establishment of Federal (FEC) and State Executive Committees (SEC) to oversee projects, as well as mediation committees to safeguard stakeholder interests.
One of its most debated provisions is Clause 19, which sets the consent thresholds required for redevelopment.
According to Clause 19 (1)(a) of the Bill, a unanimous consent threshold is required if the proprietor voluntarily applies to the FEC or SEC to carry out an urban renewal project.
Projects initiated by either committees however, would need 80% consent for buildings less than 30 years old, 75% for buildings older than 30 years, and 51% for abandoned structures.
A group of seven government MPs warned that the proposed consent thresholds are too low compared with international practice and could lead to gentrification at the expense of low-income tenants.
Wong Chen (PH-Subang) noted that Hong Kong requires a 90% threshold for buildings under 50 years old, while Singapore sets an 80% threshold for those 10 years and older.
“With Malaysia having significantly more available land than Hong Kong and Singapore, we should not rush to lower this threshold.
“We strongly believe it should be set higher, at 85% for buildings older than 30 years and at 90% for those below, to protect the rights of homeowners and tenants, especially in social housing,” he said during a press conference.
He pointed to a survey in Subang showing that nearly 73% of low-cost flat occupants were tenants rather than owners.
“This illustrates two fundamental issues. Firstly, social housing is primarily not owned by the underprivileged and thus their interests are not protected or improved by this Bill.
“Secondly, the gentrification exercise under this Bill will likely displace urban underprivileged tenants from the city centres,” Wong warned.
He called on the government to engage further with the Parliamentary Special Select Committees on Infrastructure, Transportation and Communications, and on Women, Children and Community Development, as well as to commission a full social impact study before tabling the Bill again.
Rodziah Ismail (PH-Ampang) also stressed that low-cost housing must be handled carefully.
She expressed concerns over gentrification, which could push low-income residents out of urban areas and risks alienating voters.
The MPs further proposed one-to-one replacement of redeveloped low-cost units to ensure genuinely underprivileged households are not left behind.
Opposition chief whip Datuk Seri Takiyuddin Hassan also said the Parliamentary Special Select Committee on Infrastructure, Transport and Communications had already written to Nga, calling for the second reading to be postponed until unresolved issues raised in recent engagement sessions are settled.
“I am requesting here for the minister to delay the second reading. This is a request from the select committee itself because there are many pending issues,” said Takiyuddin.
The Urban Renewal Bill, which contains 31 clauses, also empowers the Minister in the Prime Minister’s Department (Federal Territories) to declare urban renewal areas in Kuala Lumpur, Putrajaya and Labuan.
Developers approved to carry out projects must begin work within 24 months of declaration, though extensions can be granted.
The Bill is expected to be tabled for second reading on Aug 27 before the Dewan Rakyat adjourns on Aug 28.
