Constructive dialogue, sound policy needed for new urban renewal laws, says Rehda Institute

• Urban renewal should be viewed not merely as a development concern, but as a critical public health and safety priority.
• Displacement, compensation, and affordability are real and emotional concerns—but not insurmountable.

PETALING JAYA (May 10): Rehda Institute believes that sound policy on new urban renewal laws must be evidence-based, people-focused, and guided by global best practices.

“Like all major reforms, they have sparked robust discussion—some supportive, some critical,” stated the institute in a media release.

It is with this in mind that Rehda Institute hosted the International Strata Symposium on 8 and 9 April, 2025.

Featuring leading experts from Singapore, Australia, Hong Kong, Vietnam, Indonesia, and Malaysia, the event focused on comparative insights into strata law reform and en bloc redevelopment.

From the event, Rehda Institute offered key points that “stakeholders—supporters and critics alike—should carefully consider in the current urban renewal discussions, as the legislation will inevitably impact thousands of Malaysian families today and in the future”.

Global democracies have set clear precedents on thresholds, compensation, and displacement

Urban renewal is neither experimental nor unique to Malaysia. It is a proven policy tool used in mature democracies like Singapore, Melbourne, and Hong Kong, where ageing buildings present similar challenges.

These cities have established legal frameworks that permit en bloc redevelopment with supermajority agreements—typically 75% to 90% of owners—balancing democratic principles with progress.

Safeguards are in place to prevent third-party exploitation by ensuring redevelopment is owner-led, not developer-driven. Legal protections and government oversight help shield residents from coercion, ensuring broad community support.

These systems also feature strong compensation mechanisms and relocation safeguards. Transparent valuation, prioritised reallocation, and phased implementation help balance individual rights with the public good. Malaysia should adapt—not reinvent—these practices to suit local needs. Global consensus shows that requiring 100% agreement, though ideal in theory, is impractical and often blocks progress that benefits entire communities.

Urban renewal is a public health and safety imperative

Urban renewal should be viewed not merely as a development concern, but as a critical public health and safety priority. Many strata-titled buildings from the 1960s to 1980s are now severely outdated, plagued by serious hazards such as faulty electrical systems that pose fire risks, the presence of asbestos and lead-based paint, and deteriorating roofs and plumbing that cause water damage, mold, and pest infestations.

These problems threaten both residents and neighbourhoods—deterring investment, reducing property values, and eroding community well-being. A structured, preventive strategy enables cities to restore ageing assets before they fail. This approach aligns with UN Sustainable Development Goal 11, which calls for safe, affordable housing and sustainable urban development.

Displacement and compensation are valid concerns—but they are manageable and solvable

Displacement, compensation, and affordability are real and emotional concerns—but not insurmountable. Other countries provide clear examples of how to address these through effective policy. Key strategies include transparent, independent property valuation for fairness, relocation support such as financial aid, temporary housing, and first right of refusal, phased redevelopment to allow staged relocation. Malaysia can learn from international successes and mistakes to design a localised, empathetic, and flexible system. Rather than letting fear block progress, stakeholders—especially critics—should help co-create fair mechanisms that protect residents and support urban evolution.

Delaying action on urban decay will result in greater social and economic harm and deteriorating asset values

Urban decay is not solely an architectural issue but a complex crisis with escalating consequences. If left unaddressed, it leads to increased crime, economic decline as communities relocate, deepening social inequality, and a sustained deterioration and erosion of property and asset values.

History offers stark warnings. From the Kowloon Walled City in Hong Kong and vast swathes of Detroit in the United States to the sprawling slums of Mumbai, the consequences of inaction are clear and costly.

In Malaysia, similar warning signs are emerging in parts of Kuala Lumpur, where ageing flats, poor maintenance, and disinvestment signal early stages of urban decline. Without timely, coordinated intervention, today’s ageing neighbourhoods risk becoming tomorrow’s urban ghettos. Strategic, policy driven renewal now can prevent long-term social fragmentation and avoid billions in future rehabilitation costs.

Land rights and ownership will remain protected under new laws

Perhaps the most emotive concern surrounding urban renewal is the fear of losing ownership— particularly among senior citizens and long-time residents. While this fear is understandable, it may not be grounded in fact.

The Prime Minister and policymakers have publicly committed to protecting individual land rights through multiple layers of safeguards. These measures are intended to ensure that no one is forcibly displaced or unfairly treated. Legislation is being shaped to support planned, consensus-driven urban evolution. If implemented with transparency and meaningful community engagement, the new laws will strengthen—not weaken—property rights.

Majority rule is a democratic principle, not a loophole

Some opponents argue that redevelopment should not proceed unless 100% of owners agree. While this might sound fair in theory, in practice it gives disproportionate power to a small minority—allowing one or two dissenters to block much-needed renewal. The proposed threshold is in line with democratic norms already used in many areas of public governance, from elections to parliamentary decisions.

This supermajority approach ensures that any redevelopment has broad-based support while also allowing cities to move forward efficiently. Insisting on full unanimity makes urban renewal unworkable and holds the majority hostage to minority interests.

“Malaysia now stands at a pivotal juncture—not only to address local challenges but to demonstrate commitment to global sustainability goals, particularly SDG 11: Sustainable Cities and Communities. The new urban renewal laws should not be derailed by fear or misinformation. Instead, we urge all stakeholders to pursue constructive debate, pragmatic refinement, and a shared commitment to creating resilient urban futures,” stated Rehda Institute

“Let us move forward with courage and clarity—choosing progress over paralysis.” Rehda Institute will also be hosting two upcoming events focused on urban renewal in the coming weeks.

The first, Executive Dialogue on the Position Paper—Urban Renewal: Making It Work, on May 26, 2025.

The second, Sustainability Conversations: Transforming Urban Landscapes through Renewal, on June 10, 2025.

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