Urban Renewal Bill 2025 tabled in Parliament for first reading

• Housing and Local Government Minister Nga Kor Ming tabled the bill, with its second and third readings scheduled for next Wednesday (Aug 27).

KUALA LUMPUR (Aug 21): The Urban Renewal Bill 2025, which seeks to lower the consent threshold for redevelopment projects, was tabled for its first reading in the Dewan Rakyat on Thursday.

Housing and Local Government Minister Nga Kor Ming (pictured) tabled the bill, with its second and third readings scheduled for next Wednesday (Aug 27).

According to the blue bill book circulated in Parliament, Clause 19(1)(a) provides that if proprietors voluntarily apply to the Federal or State Executive Committee to initiate an urban renewal project, unanimous consent will be required.

For government-initiated projects, at least 80% of owners must consent if the building is 30 years old or less, while the required consent level for buildings older than 30 years is reduced to 75%.

In the case of abandoned buildings, the threshold is lowered to 51%. The threshold also applies to buildings deemed unsafe by a professional engineer’s inspection report.

Clause 19(2) stipulates that the age of a building will be calculated from the issuance date of its Certificate of Fitness for Occupation (CFO) or Certificate of Completion and Compliance (CCC) under the Street, Drainage and Building Act 1974.

Clause 19(3) requires developers to consult affected owners in order to secure the necessary level of consent, with the process involving the local authority and a body appointed by either the Federal or State Executive Committee.

Meanwhile, Clause 21 empowers the government to declare specific zones as urban renewal areas to facilitate redevelopment projects. In the Federal Territories of Kuala Lumpur, Putrajaya and Labuan, such declarations may be made by the Minister of Federal Territories through a gazette notification.

Similarly, in the states, the State Authority may issue a notification in the State Gazette, while projects undertaken by the Federal Executive Committee within a state may also be declared as urban renewal areas through the Gazette.

Once an area is gazetted, Clause 21(4) requires the approved developer to acquire or transfer any alienated land within the zone either by purchase or through compulsory acquisition under the Land Acquisition Act 1960.

Upon such declaration, the developer must commence the project within 24 months, although applications for an extension of time may be made to the Federal or State Executive Committee, which may grant an extension as deemed fit and proper.

Clause 25 of the bill also provides for the establishment of a Federal Urban Renewal Mediation Committee to safeguard the interests of stakeholders in projects carried out by the Federal Executive Committee.

The committee will comprise two members from the Board of Town Planners Malaysia and at least three individuals with expertise in law, project management, sociology or economics.

Members, who will be appointed by the Federal Executive Committee, will serve terms of up to three years and may be reappointed, but not for more than two consecutive terms.

The committee will be tasked with carrying out mediation as prescribed under the law to resolve disputes and ensure fairness in the redevelopment process. Members will also be entitled to allowances, the amount of which will be determined by the Minister of Housing after consultation with the Minister of Finance.

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