More than 80 residents associations in Klang Valley demand withdrawal of Urban Renewal Act

• The coalition consists of 75 residents associations led by KL Residents Action for Sustainable Development and PJ Sejahtera that represents eight residents’ associations in Petaling Jaya and four non-governmental organisations.

KUALA LUMPUR (Aug 25): A coalition of more than 80 residents associations in Klang Valley is rejecting the Urban Renewal Act 2025 and calling on the government to withdraw the legislation.

The representatives of residential committees across Kuala Lumpur and Petaling Jaya warned that the bill, first tabled last week and set for its second reading in Parliament on Wednesday, risks handing too much power to property developers at the expense of homeowners and tenants.

The residents also announced plans to stage a protest and submit a memorandum to Parliament on Tuesday morning to voice their opposition.

The coalition consists of 75 residents associations led by KL Residents Action for Sustainable Development and PJ Sejahtera that represents eight residents’ associations in Petaling Jaya and four non-governmental organisations.

The National House Buyers Association, Lawyers for Liberty and another five residents associations and committees in Kuala Lumpur are also part of the coalition.

In a joint press statement, the coalition described the bill as “defective, unsound, unlawful and devoid of legitimacy”, pointing out that despite the Housing Ministry’s claim of 108 engagement sessions, the legislation remained largely unchanged from its draft version tabled in March.

They argued that public consultation had been “one-way”, with most constructive feedback ignored.

“The sheer scale of callousness, neglect and misfeasance in the making of this new legislation is now clear to the rakyat. It has miserably failed to regulate the economic/contractual relationship between owners and developers in a fair, equitable and sustainable manner, respecting the broader public interest,” the statement read.

The groups coalition warned that the bill, by linking redevelopment thresholds to the Land Acquisition Act, would allow compulsory acquisition at levels as low as 75%, effectively uprooting communities. “This is a terrible travesty which runs against the guarantees of our Federal Constitution, specifically Articles 8 and 13,” they said.

Meanwhile, KL Residents Action for Sustainable Development chairperson Tan Booi Charn listed six key safeguards they had proposed, including raising the consent threshold to no less than 95%, ensuring fair compensation exceeding market value with profit-sharing, setting clear criteria for qualified developers, and establishing a trust fund for sustainable building maintenance.

“These are the six important components that have to be in the Act. But it was not found,” she said.

The campaign is also supported by Selamatkan Kuala Lumpur, Gabungan Bertindak Malaysia, the Federation of Malaysian Consumers Associations (FOMCA), Gabungan Darurat Iklim, and the Institute of Strategic Analysis and Policy Research (INSAP), the think tank arm of MCA.

The Urban Renewal Bill was tabled for its first reading in Parliament on Aug 21 by Housing and Local Government Minister Nga Kor Ming, seeking to establish a legal framework to accelerate redevelopment of ageing housing.

Among its key provisions, Clause 19 sets the consent threshold for redevelopment at 80% for buildings aged 30 years or less, 75% for buildings older than 30 years, and 51% for abandoned or unsafe buildings. The government has argued that this threshold is among the highest in the world and protects homeowners’ rights.

The ministry has also pledged that owners will receive replacement units larger and more valuable than their current homes at no extra cost.

Nevertheless, lawmakers from both the government and Opposition have urged the ministry to defer the second reading and refer the bill to parliamentary special select committees for further scrutiny, citing risks of gentrification and displacement of low-income tenants.

The bill is scheduled for debate and voting on Wednesday.

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