PETALING JAYA: Prime Minister Datuk Seri Anwar Ibrahim today reassured the public that the proposed Urban Renewal Act (URA) will not displace Malays and Bumiputera communities currently living in prime city areas.
He emphasized that the new bill would ensure homeowners receive fair compensation if their properties are demolished for redevelopment projects.
He also stated that current homeowners would be allocated a unit within any redevelopment project undertaken by developers.
“The compensation homeowners receive will be based on the future market value of their property, enabling them to regain property ownership in the newly developed project,” Anwar said in a statement read by his senior press secretary, Tunku Nashrul Abaidah.
Anwar added that under the current system, compensation is based on the property’s present value, often leaving homeowners unable to afford a new unit within the redevelopment.
“In addition to higher compensation, the bill will also ensure various forms of support for homeowners, including transit housing rental payments, ex-gratia payments for renovations, and other financial assistance to help sustain their livelihoods throughout the construction period. The bill will also emphasize the principles of social justice, which form the foundation of the Madani vision.”
Anwar asserted that critics have no basis for claiming that the bill would displace Malays and Bumiputera communities from the city or that the proposed law would solely benefit developers.
The URA, proposed by Housing and Local Government Minister (KPKT) Nga Kor Ming, seeks to lower the homeowner consent threshold for urban renewal projects from the current 100% to 80%.
A total of 534 potential redevelopment sites have been identified across Peninsular Malaysia, including 139 in Kuala Lumpur. These sites cover 13.4% of the city’s total area and have a combined gross development value (GDV) of RM355.3 billion.
The proposed law is expected to be tabled in Parliament next July.
One of the most contentious issues surrounding the URA is the consent threshold, with critics arguing that it may disproportionately affect Malay communities and lower- to middle-income urban groups (B40 and M40).
