Urban Renewal

The Urban Renewal Act (URA) is a new law proposed by the government, drafted by the Ministry of Housing and Local Government, aimed at implementing urban renewal across Malaysia.

The main method to be used in the URA is redevelopment.

The draft URA Bill has been released to the public and is expected to be debated in the June 2025 Parliamentary Session.

Akta Pembangunan Semula Bandar (PSB) atau Urban Renewal Act (URA) adalah satu undang-undang baru oleh kerajaan yang dirangka oleh Kementerian Perumahan & Kerajaan Tempatan untuk tujuan melaksanakan pembaharuan bandar bagi seluruh Malaysia.

Kaedah utama yang akan digunakan dalam URA ialah pembangunan semula. 

Draf RUU URA telah dikeluarkan untuk rujukan orang awam dan dijangka akan dibahaskan di dalam sidang Parlimen bulan Jun 2025.

1.We, KLRA+SD, a non-profit platform comprising of 74 RAs in Kuala Lumpur, 6 NGOs and 1 university would like to appeal to the MPs to consider the implications of the URA bill on their constituents and [impress/get ] the government to institute key policy improvements to protect key rights of the Rakyat.

2. KLRA+SD supports fair and equitable redevelopment to rejuvenate dilapidated areas, to improve the quality of living environment. 

3. The contentious point of the URA is the lowering of consent threshold from 100% to 75%-80%, where dissenters are compelled to give up their properties once threshold is reached. We are concerned that the URA bill has insufficient compensating protective measures and safeguards to prevent exploitative actions that are already happening. We also view that the URA bill has not outlined adequate measures to ensure fair and equitable compensation for homeowners.

4. Since the early announcement of the URA by KPKT last year and announcement of the 139 redevelopment sites within Kuala Lumpur Structural Plan 2040, there have been multiple cases of redevelopment attempts by private developers who are positioning themselves in the earmarked neighbourhoods ahead of the URA.

5. These developers have resorted to various measures to extract consent from homeowners. Unfortunately, a number of questionable tactics have been used including (1) not disclosing the redevelopment plans, (2) not informing offer information that have financial implications to owners, (3) selective negotiation with owners who own multiple units for rentals  and (4) using shell companies without substantive shareholders to contract with owners. Please see some examples in the Appendix I

6. These have led to split communities with reports of harassment and threats experienced by residents. There are also wide concerns on risk of delayed and abandoned projects, given some of these developers do not have established track records.

7. The current 100% consent threshold is the only protection for many homeowners against such risks. Many homeowners in matured housing areas are the elderly, retirees and low-income groups. They cannot afford to be exposed to construction risks. Nor is it fair for these home-owners not to be equitably compensated after being coaxed into surrendering their properties without sharing the profits generated.