CONCERNED stakeholders have called on Putrajaya to address fundamental weaknesses in the proposed Urban Renewal Bill before it is reintroduced in Parliament, warning that shortcomings in consent thresholds, compensation safeguards and oversight mechanisms could undermine public confidence and expose vulnerable communities to harm.
UMNO urban renewal convention task force chairman Datuk Seri Johari Abdul Ghani said the government was right to withdraw the Bill and redraft it, describing the move as both correct and timely in light of unresolved concerns that risked weakening trust in the legislation.
While reiterating support for the goal of rejuvenating ageing and unsafe urban areas, Johari said the Bill faltered in its execution, pointing to diluted consent thresholds, excessive executive discretion and the absence of sufficient statutory protections as key weaknesses.
He stressed that core safeguards must be embedded in the law itself rather than left to administrative guidelines, including high consent requirements, fair and transparent compensation, independent oversight and clear protections against forced displacement.
“Urban renewal must be carried out in a manner that balances development needs with constitutional protections, public trust and investment certainty.
“Getting this balance right is essential for the long-term stability of the property sector and the economy,” The Star reported him saying when contacted.
The Bill was formally withdrawn on Friday, with government spokesman Datuk Fahmi Fadzil saying the move was intended to allow for improvements before it is retabled in the Dewan Rakyat.
The proposed legislation, under the Housing and Local Government Ministry, is intended to facilitate the renewal of dilapidated and unsafe urban areas across Malaysia.
It was tabled for second reading in August last year, but debate was later postponed following objections from various groups, including Members of Parliament.
MCA deputy chief Chong Yew Chuan said the Cabinet must now confront several critical questions, chief among them whether the proposed threshold for compulsory acquisition had been set too low.
He noted that previous redevelopment projects had been successfully carried out with full owner consent, cautioning that lowering the threshold to 75% or 80% would effectively silence minority owners.
In a statement yesterday, Chong said the decision to withdraw the Bill demonstrated that concerns raised by political parties, civic organisations and non-governmental groups were “well-founded and not politically motivated”.
He also raised doubts over whether compensation and resettlement mechanisms would be fair and transparent, whether the rights of vulnerable groups such as the elderly and low-income families would be adequately protected, and whether excessive power was being concentrated in the hands of ministers and executive agencies without sufficient oversight.
“Meetings and discussions are one thing, but whether feedback is seriously adopted is another,” he said.
While emphasising that MCA did not oppose urban development, Chong warned against rushing through flawed legislation, arguing that doing so could erode people’s rights, marginalise vulnerable communities and increase the risk of abuse of power and corruption.
He urged ministers to prioritise improving the law rather than attacking critics, saying attempts to silence dissent would only deepen public mistrust.
MCA Urban Affairs Bureau chairman Tan Gim Tuan also welcomed the withdrawal, calling it the right decision and expressing surprise that such a “half-baked” Bill had been presented to Parliament in the first place.
He said urban renewal must place people ahead of profit and called for any future legislation to be tightly drafted, given its far-reaching impact on livelihoods and property ownership.
Civil society groups have echoed these concerns.
The Kuala Lumpur Residents Action for Sustainable Development Association said urban renewal efforts should focus on making redevelopment work for existing communities while ensuring that commercial interests do not override homeowners’ rights.
The association called for broad national consultations involving residents’ associations, civil society groups, professional bodies and academia, stressing that homeowners were the stakeholders most directly affected by redevelopment decisions.
It also urged the government to impose a temporary moratorium on redevelopment approvals in Kuala Lumpur, warning that current guidelines lacked adequate safeguards and fair compensation frameworks.
“Guideline revisions should include a focus on refurbishment as an option, given that not all areas with renewal potential need redevelopment,” the association said.
If you want, I can also adapt this for a wire-style version, a shorter front-page lead, or an analysis sidebar highlighting the political and economic implications. - January 25, 2026
