PETALING JAYA: Putrajaya must resolve key weaknesses in the Urban Renewal Bill – including consent thresholds, compensation safeguards and oversight – before the legislation is resubmitted to Parliament, say concerned stakeholders.
Umno urban renewal convention task force chairman Datuk Seri Johari Abdul Ghani described the withdrawal of the Bill and plans to redraft it as correct and timely, saying unresolved concerns over consent thresholds, safeguards and governance could have undermined public confidence.
While maintaining that the objective of renewing ageing and unsafe urban areas was sound, Johari said the Bill’s weaknesses lay in its execution, particularly diluted consent thresholds, excessive executive discretion, and insufficient statutory protections.
He stressed that key safeguards – including high consent requirements, fair compensation, independent oversight and protection against forced displacement – must be clearly written in the law itself rather than left as guidelines.
“Urban renewal must be carried out in a manner that balances development needs with constitutional protections, public trust and investment certainty.
“Getting this balance right is essential for the long-term stability of the property sector and the economy,” he said when contacted.
On Friday, government spokesman Datuk Fahmi Fadzil said the Bill had been withdrawn to allow for enhancements before it is retabled in the Dewan Rakyat.
The Bill, which comes under the Housing and Local Government Ministry, is aimed at renewing dilapidated and unsafe urban areas in Malaysia.
It was tabled for second reading in August last year, but the debates were later deferred following objections raised by groups including MPs.
MCA deputy chief Chong Yew Chuan said the Cabinet must address several critical issues, including whether the threshold for compulsory acquisition was set too low.
He pointed out that past redevelopment projects had been successfully implemented with full owner consent, warning that reducing the threshold to 75% or 80% would silence minority owners.
In a statement yesterday, Chong said the decision to withdraw the Bill showed that concerns raised by political parties, civic groups and non-governmental organisations were “well-founded and not politically motivated”.
He also questioned whether compensation and resettlement mechanisms were fair and transparent, whether the rights of vulnerable groups such as the elderly and low-income families would be protected, and whether too much power was being concentrated in the hands of ministers and executive agencies without sufficient oversight.
“Meetings and discussions are one thing, but whether feedback is seriously adopted is another,” he said.
While stressing that MCA did not oppose urban development, Chong cautioned against rushing through flawed legislation, warning it could lead to the erosion of people’s rights, the marginalisation of vulnerable communities, and the risks of abuse of power and corruption.
He also urged ministers to focus on improving the law rather than attacking critics, saying attempts to silence dissent would only deepen public mistrust.
MCA Urban Affairs Bureau chairman Tan Gim Tuan said the withdrawal was the right move, expressing surprise that such a “half-baked” Bill had been presented to Parliament.
He said urban renewal must prioritise people over profit and called for any future legislation to be “tightly drafted”, given its impact on lives and property.
The Kuala Lumpur Residents Action for Sustainable Development Association said urban renewal should focus on making redevelopment work for communities while keeping commercial interests in check, adding that homeowners were the most affected stakeholders.
The group also urged the government to conduct broad national consultations involving residents’ associations, civil society, professional bodies and academia.
It further called for a temporary moratorium on redevelopment approvals in Kuala Lumpur, warning that existing guidelines lacked adequate safeguards and fair compensation frameworks.
“Guideline revisions should include a focus on refurbishment as an option, given that not all areas with renewal potential need redevelopment,” the association said.
