KUALA LUMPUR, Aug 22 — Malaysia has taken its first legislative step to reshape ageing towns and cities with the long-awaited Urban Renewal Bill tabled in Parliament yesterday
The Bill, a first of its kind for the country, will be a comprehensive framework for redeveloping and rejuvenating old neighbourhoods and dilapidated flats — many of which were built more than 30 years ago and now face structural decay, poor maintenance, and safety risks.
If passed, the law will empower the federal and state governments to redevelop entire areas rather than just individual buildings.
This Bill includes clearer processes for land acquisition, compensation for affected owners and tenants and the creation of an Urban Renewal fund to support financing.
Why does the Bill matter?
For years, the country has been struggling with the challenge of old flats with faulty wiring, outdated infrastructure and poor maintenance.
Local councils often lack the funds and authority to initiate major upgrades, leaving residents caught between safety concerns and limited options.
The Bill has proposed to help to cut through these bottlenecks, while it will also look at introducing dispute resolution mechanisms — something absent in past attempts to redevelop old housing.
What is the Urban Renewal Bill?
The Bill lays out a legal pathway for the redevelopment, regeneration, or revitalisation of old urban areas.
It sets rules for how old buildings and neighbourhoods can be declared “urban renewal areas,” how developers are appointed and how affected residents and property owners are to be consulted, compensated and rehoused.
It also establishes Federal and State Executive Committees that will oversee projects, approve developers, track progress, and provide incentives to make projects viable.
Some features of the Bill
- Consent thresholds: Redevelopment projects cannot proceed without the agreement of a significant majority of residents and owners. For buildings over 30 years old, 75 per cent consent is required; for those 30 years or younger, 80 per cent is needed. In the case of abandoned or structurally unsafe buildings, the threshold drops to 51 per cent.
- Declaration of renewal areas: State Authorities and the Federal Territories Minister may officially designate any area as an “urban renewal area” through the Gazette, after which an approved developer must commence work within 24 months.
- Protection for residents: The Bill requires that affected persons be offered benefits no less favourable than what they had before, including the option to remain in the redeveloped area. They also have the right to be informed about project progress.
- Checks and mediation: Federal and State Urban Renewal Mediation Committees, comprising town planners, lawyers, sociologists and project managers, will be set up to safeguard residents’ interests and mediate disputes. Members are required to declare any conflicts of interest.
- Requirements for developers: Developers must consult affected residents, obtain consent in line with the thresholds, and commission professional inspection reports. They are also tasked with addressing issues of abandoned, mismanaged or unsafe buildings.
