KUALA LUMPUR, March 19 — The perception that the Urban Renewal Act (URA) will cause Malays and Bumiputeras to lose their place in the city, or that the law prioritises developers, is incorrect.
Prime Minister Datuk Seri Anwar Ibrahim explained that, on the contrary, the proposed URA will protect the rights of property owners by ensuring fair and significantly higher compensation than is currently provided.
This was shared by the Prime Minister’s senior press secretary, Tunku Nashrul Abaidah, during the Prime Minister’s Office daily briefing today.
Anwar also added that the law aims to protect the rights and dignity of the people, particularly Malays in the cities, ensuring that the urban poor can live with greater dignity, rather than being left to live in overcrowded conditions for decades without resolution.
Tunku Nashrul stated that “The Urban Renewal Bill is a solution to the struggle between the people and the developers that has been going on for a long time.”
The Prime Minister clarified that there are misconceptions about the original homeowners losing their rights once the law is implemented.
Regarding the concerns about how the original owners would be able to repurchase their renovated homes, Anwar emphasised that one of the key principles of the URA is that housing renewal projects must be carried out through consultation with the owners, ensuring their consent to participate in the project.
Once an agreement is reached, the owners will receive renovated properties, compensation, living allowances, and several other benefits during and after construction.
The Prime Minister further stressed that the URA will ensure that the renovated houses are returned to the original owners, allowing them to return to live on the original site once the development is complete.
He also stressed that the property compensation value the owner will receive will be based on the future market value, helping them to repurchase their renovated house. This is different from the current situation, where compensation decided by the consultant or the court is based on the current value.
Tunku Nashrul added, “In addition to compensation that is much higher than the current method, the URA will also ensure that various forms of compensation or benefits are provided to the owner, including transit housing rental payments, ex-gratia payments for renovation of existing properties, and other payments to support the owner’s livelihood during the construction period, as well as ensuring that any redevelopment emphasises the principles of social justice that are the basis of the Madani concept.”
The Housing and Local Government Ministry has identified up to 139 pieces of land in Kuala Lumpur for redevelopment, with 91 of them being residential properties. These projects are expected to generate an estimated gross development value of RM332.5 billion.
