(front row from left) Institute of Strategic Analysis and Policy Research (INSAP) Board of Trustee Fui K. Soong, G25 Malaysia chair and founding member Tan Sri Mohd Sheriff Kassim, MCA secretary-general Datuk Chong Sin Woon, National House Buyers Association (HBA) secretary-general Datuk Chang Kim Long and Malaysian Institute of Property and Facility Managers (MIPFM) central committee member PMgr Sr Low Han Hoe together with INSAP director Woon King Chai (backrow, far left), MCA Urban Affairs Bureau chairman Tan Gim Tuan (backrow, far right) and other panelists posing for photograph after the joint press conference of Urban Affairs Policy Summit (UAPS) 2025 at Wisma MCA in Kuala Lumpur on Saturday. — IZZRAFIQ ALIAS/The Star
KUALA LUMPUR: The proposed Urban Renewal Act (URA) should be withdrawn and fresh rounds of consultations must be held instead, says a coalition of professional bodies, civil society groups and residents’ associations.
The coalition of nine organisations said the Urban Renewal Bill, due for its second reading in Parliament on Oct 6, undermines property rights by lowering consent thresholds below 100%, effectively allowing minority owners to be forced into surrendering property against their will.
In a joint statement issued after the Institute for Strategic Analysis and Policy Research’s (Insap) Urban Affairs Policy Summit yesterday, the groups urged the government to impose a moratorium on developer-led solicitations and restart “genuine consultations” with stakeholders.
They warned that the legislation centralises powers at the federal level, erodes state authority over land matters and tilts heavily toward a developer-driven model in which private firms initiate projects, gather consent and influence valuations.
This approach, the coalition said, sidelines owners and communities while deepening public distrust. The statement also criticised the Bill for favouring demolition and rebuilding over regeneration, revitalisation or adaptive reuse, raising fears of unnecessary displacement.
Safeguards for vulnerable households such as tenants, the elderly, disabled persons and low-income families were described as weak, with insufficient relocation or compensation measures.
The coalition argued that the proposed URA is redundant, noting that the Land Acquisition Act 1960 and Town and Country Planning Act 1976 already provide legal frameworks for urban renewal.
Instead of addressing governance and funding gaps, the Bill risks duplication and confusion.
“Any credible path forward should place property owners at the centre, supported by independent professionals, with developers entering only through transparent tender processes,” said MCA secretary-general Datuk Chong Sin Woon, who read the statement flanked by representatives of the nine groups.
The coalition also called for parliamentary scrutiny, independent tribunals and professional verification of redevelopment decisions, along with compensation mechanisms that reflect redevelopment value, including relocation, rental and equity-sharing options.
They pressed for mandatory social and traffic impact assessments to guard against gentrification and heritage loss, while urging that state and local governments retain control in line with the Federal Constitution’s division of powers.
“Malaysia’s urban future must not be dictated by narrow commercial agendas. Renewal must serve the rakyat, preserve community bonds, protect vulnerable households and create inclusive, liveable cities.
“Without these protections, the proposed URA risks becoming not a tool of renewal, but of displacement and distrust,” the statement said.
The signatories include MCA, Insap, the Kuala Lumpur Residents Action for Sustainable Development Association, the National House Buyers Association, the Malaysian Urban Design Association, G25 Malaysia, Pertubuhan Profesional Tanah Malaysia, the Royal Institution of Surveyors Malaysia and the Malaysian Institute of Property and Facility Managers.
The proposed URA, first tabled in Parliament on Aug 21, aims to address redevelopment, rejuvenation and revitalisation of ageing urban areas.
Its second reading was postponed following protests.
