The Urban Renewal Bill 2025 will be amended to reflect a new consent rule after the proposed law drew pushback from MPs and civil groups.
Housing and local government minister Nga Kor Ming said all redevelopment projects under the bill would now require the agreement of 80% of owners.
“All the thresholds have been standardised at 80%, regardless of the age of the building,” he said in tabling the bill for its first reading in the Dewan Rakyat.
Previously, the bill proposed a lower consent threshold for certain types of buildings, namely 75% for those over 30 years old and only 51% for abandoned or unsafe ones.
The change comes after the parliamentary committee on infrastructure raised concerns on the threshold during an Aug 21 engagement.
Nga said reaching the 80% mark did not mean buildings would be demolished or residents evicted. Instead, it marks the point when discussions can begin with affected owners.
“Only once the threshold is reached, will talks with owners begin. It’s not about taking your house straight away, but starting a discussion.”
The bill outlines three types of projects – redevelopment involves tearing down and rebuilding housing projects; regeneration involves repairs or upgrades to dilapidated or abandoned buildings; while revitalisation refers to upgrading or improving an area without demolishing it.
Nga said many of the areas targeted for renewal were selected by state governments, not the federal ministry. He gave Terengganu, Kedah and Kelantan as examples of states that had already gazetted sites for future work.
“The areas (chosen) came from the states themselves. That’s a fact, not fiction,” he said.
The minister added that obtaining the consent of all owners was nearly impossible for many old flats as some owners could not be found or had unresolved legal issues, while others might be stuck with unpaid loans or waiting for their title to be issued.
To address fears of unfair treatment, Nga said the bill would protect those who agreed to take part, with developers required to give owners terms no worse than before.
In most cases, homeowners will receive a new house in the same area, he said.
“Each owner will get a new home, one for one, or better, so that they can return to the same area.”
He also dismissed claims that the law threatens Malay reserve land or village land, stating these plots of land will retain their original status.
Nga also dismissed accusations that the law would force out poor families to make way for luxury projects.
