The Malaysian Bar has called on the Government to strengthen protections in the proposed Urban Renewal Bill 2025, warning that the current draft could undermine property rights and displace communities if passed without amendments.
The Bill, tabled for its first reading in the Dewan Rakyat on 21 August, seeks to provide a legal framework for the redevelopment and regeneration of ageing, unsafe, or abandoned urban areas. While acknowledging the importance of urban renewal, the Bar cautioned that the legislation must not sacrifice fundamental rights, security of tenure, or public confidence in the rule of law.
One of the Bar’s key concerns is the consent threshold set in the Bill — 80% for buildings aged 30 years or less, 75% for those over 30 years, and 51% for unsafe or abandoned buildings. The Bar said these levels are too low compared to international benchmarks, warning they could expose minority owners to compulsory acquisition and displacement. It has proposed raising the thresholds to 90% for newer buildings and 85% for older ones, with independent verification of consent.
The Bar also criticised provisions that allow developers to independently secure consent, without State government involvement. It argued that such responsibilities should not rest solely on developers and urged for State participation to be made mandatory.
Concerns were also raised over compulsory acquisition under Section 21(4) of the Bill, which permits landowners who do not consent to still face acquisition once thresholds are met. The Bar stressed that all landowners — both participating and non-participating — must be entitled to safeguards and offers of benefit under renewal schemes.
Other key issues highlighted include:
- The need for statutory protections for tenants and occupiers, including relocation support and the right of return to equivalent housing.
- Stronger transparency requirements, such as mandatory public hearings, social and traffic impact assessments, and full disclosure of development terms.
- Establishment of an independent mediation body and tribunal to resolve disputes, alongside provisions for legal aid.
The Bar also expressed concern over the Bill’s reliance on the Land Acquisition Act 1960, stressing that compulsory acquisition should be reserved only for genuine public purposes, with enhanced compensation covering relocation and disturbance allowances.
“The absence of a tribunal, the low consent thresholds, and the lack of adequate safeguards risk turning urban renewal into a tool for private profit at public expense,” said Malaysian Bar President Mohamad Ezri Abdul Wahab.
The Bar has urged the Government to defer the second reading of the Bill and conduct further consultations with stakeholders, including residents’ groups, consumer associations, and civil society organisations.
“Only by ensuring higher safeguards and stronger protections can urban renewal achieve its intended purpose of revitalising our cities while respecting the rights and dignity of all Malaysians,” Ezri said.
