THE proposed Urban Renewal Bill (RUU Pembaharuan Semula Bandar, or PSB) is designed with a firm commitment to protect the welfare of Malaysians by ensuring that residents of dilapidated and ageing buildings are not forcibly evicted, the Minister of Local Government Development, Nga Kor Ming, has said.
“The second principle of this Bill is clear — residents will remain in their original area. No one will be evicted, and they are entitled to a new residential unit on the same site,” Nga told a press conference.
He clarified that relocation will only occur if residents themselves opt to move elsewhere, and that the PSB framework prioritises continuity and dignity for affected communities.
Under Section 24 of the Bill, compensation provisions require that upgraded units must offer significantly better living conditions. “If previously, the home was 500 square feet with one bedroom and one bathroom, under the renewal scheme, the minimum is 750 square feet with three bedrooms and two bathrooms,” said Nga.
He stressed the “humanitarian nature” of the Madani government in crafting the Bill, with designs reflecting the needs of families. “We set the requirement for three bedrooms — one for the parents, one for sons, and one for daughters. This is how we care for the people,” he said.
Nga also assured that residents would not be displaced into substandard temporary housing during redevelopment. “Developers must first build a temporary block before beginning the new project. Residents can move into this block until the new homes are completed.”
Alternatively, he said, “If they choose not to relocate to the temporary unit, developers are obliged to provide a rental subsidy. Residents are free to stay anywhere they wish during the interim.”
This flexible approach, Nga added, is intended to ensure residents can make independent decisions without pressure. “When the project is completed, they will move back into their new unit,” he said.
Addressing criticism from the opposition, Nga rejected suggestions that homeowners would lose land rights, asserting that the Bill guarantees ownership and improved living standards. “This law is not about enriching developers, but about raising the quality of life. Old homes are being transformed into better, more valuable properties,” he said.
He pointed to past failures such as the redevelopment of Razak Mansion in Kuala Lumpur, where the absence of a specific urban renewal law saw families displaced under the Land Acquisition Act. “In that case, 33 families who refused were forced out and only compensated after the fact. We don’t want to repeat those mistakes,” he said.
This time, the Bill ensures that redevelopment only proceeds after 80 percent of affected residents agree, with negotiations following thereafter. “The Madani government is a compassionate government — humane and empathetic. This Bill is needed to safeguard people’s rights.”
Nga also expressed appreciation for the opposition’s initial support of the Bill, noting that Opposition Leader Hamzah Zainudin had told the Prime Minister during Prime Minister’s Question Time (PMQT) that they would back the Bill, requesting only a delay.
“He said they would not oppose it. It’s in the Hansard — the Opposition Leader stated their support. All of you heard it. They asked for a deferral, not a rejection,” Nga said.
He urged the opposition not to “resort to political theatrics” when the Bill returns to the Dewan Rakyat. “Now that I have agreed to the postponement, don’t turn this into a drama to mislead the public.”- Sept 1, 2025
