PETALING JAYA: Lawmakers are urging Putrajaya not to rush the Urban Renewal Bill through its second reading in Parliament when it reconvenes in October.
The call comes amid mounting objections from professional bodies, civil society groups and residents’ associations who fear that the Bill, first tabled in the Dewan Rakyat on Aug 21, could erode property rights and disproportionately empower developers at the expense of communities.
Petaling Jaya MP Lee Chean Chung said PKR MPs suggest holding internal discussions to identify key concerns and propose improvements to the Bill.
He also called for the second reading of the Bill scheduled for October to be postponed to allow broader engagement.
He said this could help ensure the government gains wider support and the model is properly fine-tuned.
Lee identified three main concerns – the different consent thresholds, the extent of ministerial authority in declaring projects and the need to give more room for resident-initiated renewal efforts.
Titiwangsa MP Datuk Seri Johari Ghani, who heads Umno‘s task force on the Bill, said Umno was not opposed to development but warned that “legislation must never come at the expense of the people.”
“A win-win outcome must be the objective – where the country can progress without marginalising existing communities. We must not pass a Bill that fails to protect those it is meant to benefit,” he said early this month on the sidelines of the 18th Asean Ministerial Meeting on the Environment.
Opposition MPs have also taken a firm stand, with Perikatan Nasional chief whip Datuk Seri Takiyuddin Hassan saying on Aug 26 that 68 of its MPs are ready to face suspension from Parliament over their opposition to the Bill.
PAS vice-president Datuk Idris Ahmad questioned whether the Bill would end up empowering developers instead of protecting ordinary Malaysians.
He raised concerns about the forced acquisition of land, the protection of Malay Reserve and waqf land, and the fate of tenants from lower-income groups.
“Urban renewal is not like building hospitals or schools. It directly affects people’s homes. How can landowners be forced to give up their land with such a low consent threshold?” he questioned.
Bachok MP Mohd Syahir Che Sulaiman said the proposed law risked fuelling gentrification and widening inequality.
“Old neighbourhoods could be replaced with premium projects, pushing original residents – especially Malays, bumiputra and the B40 – to the outskirts.
“Redevelopment often drives up housing, rental and utility costs, worsening urban poverty,” he said.
Mohd Syahir also pointed to legal contradictions between the Urban Renewal Bill and the Land Acquisition Act, arguing that the Bill’s interpretation of “state authority” for Federal Territories is in conflict with existing provisions.
The pushback has also been echoed by nine organisations that issued a joint statement at the Urban Affairs Policy Summit 2025 on Saturday (Sept 28), calling for the Bill to be withdrawn and fresh rounds of consultations to be held instead.
The groups include MCA, the Institute of Strategic Analysis and Policy Research (Insap), the Kuala Lumpur Residents Action for Sustainable Development Association, the National House Buyers Association, the Malaysian Urban Design Association, G25 Malaysia, the Pertubuhan Profesional Tanah Malaysia, the Royal Institution of Surveyors Malaysia and the Malaysian Institute of Property and Facility Managers.
