Government confirms urban renewal will require owner consent, not forced relocation, with a focus on returning residents to improved units.
PUTRAJAYA: The government will not adopt the en-bloc sale model for urban renewal to prevent forced relocation and gentrification, said PLANMalaysia deputy director-general (Development) Saidin Lateh.
He stated the en-bloc approach, practised in Singapore and Hong Kong, contradicts the forthcoming Urban Renewal Bill, which guarantees owners the right to return to replacement units at no cost.
“We will not implement en-bloc sales,” Saidin told reporters after a dialogue session.
“Malaysia takes a different approach.”
He explained that securing 80% owner consent will initiate consultations and technical studies, but the process remains negotiation-based and no project can proceed without majority approval.
Saidin acknowledged that achieving full consent is nearly impossible due to untraceable owners, inheritance issues, and overseas migration.
“We must be realistic,” he said.
“If 95 owners agree but five do not, it would be unfair to disregard the majority who have long lived in substandard housing.”
Under the Bill, owners will receive larger, higher-quality replacement units without any payment, with relocation, temporary rental, and early maintenance costs covered by the developer.
Those opting to relocate will receive cash compensation based on market value.
To strengthen community confidence, government-linked companies, state-owned firms, UDA Holdings Bhd and MARA will be prioritised as developers.
The Urban Renewal Bill is expected to be tabled again in Parliament next month.
