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LETTER | Urban Renewal Act does not centralise authority

LETTER | Recent commentaries, including P Gunasegaram’s yesterday (Sept 2), argued that the Urban Renewal Bill concentrates excessive power in the housing and local government minister’s hands.

Having been consulted during its development, I must respectfully disagree. The URA does not centralise authority. Rather, it establishes a much-needed, evidence-based framework to resolve long-standing issues of abandoned and unsafe housing.

Before national legislation, municipal and state agencies have already demonstrated how managed renewal benefits communities. We’ve already heard much about the 1Razak Mansion in Salak Selatan and Kerinchi Flats by the Kuala Lumpur City Hall.

But up north, the Penang State Housing Board is also leading urban regeneration, such as in Bayan Baru, where the Mahsuri Flats are being redeveloped.

More positively, residents will not have to leave their original area, with a block of compensation units being built for them to move into first, before demolition and redevelopment begin.

These projects ensure cost-effective renewal of worn-out housing, improving living conditions without displacing residents, and align precisely with the kind of structured, consultative renewal the URA seeks now to elevate nationwide.

Coordination, not centralisation

Authorities like DBKL and the board work locally, but face legal and economic limitations.

The Federal Executive Committee that URA establishes serves as a coordination hub, not a power grab. It brings together state exco members, local authority representatives, planners, and land directors.

Land authority remains with the states, as the Federal Constitution and National Land Code affirm.

Another criticism is that URA burdens residents. In reality, it strengthens protection by standardising an 80 percent consent threshold to begin negotiations, not to force a sale.

Residents retain the right to fair compensation, relocation arrangements, and eventually returning to on-site housing. These protections mirror what DBKL and Penang have already shown can work in practice.

A balanced, informed approach

Suggesting the bill be “sent back to the drawing board” ignores more than a decade of stakeholder dialogue. Worse, it risks stalling the upgrade of unsafe flats and abandoned projects that agencies like DBKL and the board have tackled patiently and successfully.

The URA offers continuity, not disruption, with broader, nationally consistent safeguards.

Urban renewal has already proven its worth in KL and Penang, improving homes and lives through collective agreement and fair process.

Now, the URA Bill, if passed, can institutionalise that model, ensuring Malaysia can achieve meaningful, safe, and equitable renewal at scale.

Rejecting it now would mean denying residents the benefits already experienced where renewal has worked well.


The views expressed here are those of the author/contributor and do not necessarily represent the views of Malaysiakini.


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