KUALA LUMPUR: There will be a "one-for-one" replacement as compensation for acquisitions made under the Urban Renewal Act, says Town and Country Planning Department (PLANMalaysia) Director General Datuk Dr Alias Rameli.
"One house will be replaced with another house. If the price was RM70,000 previously after urban redevelopment it will be valued at RM400,000. There will be no payment required and it is free of charge for the residents who are in agreement," he told a press conference in Parliament on Tuesday (Aug 26).
PLANMalaysia is a department under the Housing and Local Government Ministry, with the goal of improving people’s wellbeing and national prosperity by 2030.
He said homes developed under the Urban Renewal Act will have larger floor size, three rooms and two bathrooms.
"Aside from a larger square feet, it will have better amenities and infrastructure,” he said while explaining the benefits for those involved in the redevelopment programme.
He said the Urban Renewal Act will focus on negotiations and not forced land acquisition, while noting that urban redevelopment can be done via the Land Acquisition Act 1960, which is a law governing compulsory land acquisition.
"Through the Urban Renewal Act we want to avoid land acquisition for run-down buildings in the area," he said.
He said if a building is less than 30 years old, it will require 80% of the owners to express their consent before negotiations can begin, 75% for those over 30 years and for abandoned and derelict buildings it takes 51%.
"That is why when there is the negotiations process, it helps the residents understand better. There is no compulsion by the federal or state executive committees for those who disagree," he said.
He also assured that Malay reserved land or the rights of the community will not be affected under the Urban Renewal Act.
"Freehold land will remain as freehold. As for leasehold, we may leave it to the discretion of the state authorities to increase the lease period," he said.
He said the Urban Renewal Act will not take over the power of the states and local authorities in land matters under various laws.
He said the law is meant to complement existing laws and is not meant to replace any.
He also assured the roles of the Mentri Besar, chief ministers or the mayor will not be affected under the Urban Renewal Act.
"The minister’s role is just to ensure the best governance in the implementation without taking any powers of the state and local authorities," he said.
"Urban Renewal Act is not about power but the well-being of the people," he said, adding that dilapidated homes with urban poverty elements will be rejuvenated.
Alias cited Razak Mansion and Kampung Kerinchi as examples of success stories.
The bill, which was tabled in the Dewan Rakyat last week, has spurred resistance from various quarters including MPs from both sides of the divide and residents groups.
