Malaysian Bar joins calls to defer Urban Renewal Bill, says compulsory acquisition clause 'illogical'

• It criticised provisions that would allow compulsory acquisition from dissenting landowners once thresholds are met, calling it “illogical” and unfair. Safeguards, it stressed, should extend to all owners, whether they participate or not.

KUALA LUMPUR (Aug 27): The Malaysian Bar has urged the government to defer the second reading of the Urban Renewal Bill 2025 (URA Bill), joining a growing chorus of critics warning that the proposed law could undermine homeowners’ rights and displace vulnerable communities.

While the Bar recognises the need for a legal framework to address ageing and unsafe buildings, the current bill contains serious shortcomings and must undergo further consultation with residents, civil societies and consumer groups, it said in a statement.

It criticised provisions that would allow compulsory acquisition from dissenting landowners once thresholds are met, calling it “illogical” and unfair. Safeguards, it stressed, should extend to all owners, whether they participate or not.

Proposed consent thresholds are “set too low” compared with other jurisdictions, risking the rights of minority owners, it added.

It urged the thresholds to be raised to at least 85% and 90%, with independent verification of consent. The bill requires consent thresholds of 80% for buildings aged 30 years or less, 75% for those over 30 years and 51% for abandoned or unsafe buildings.

The Bar further raised concern that the revised draft sidelines state authorities from verifying consent thresholds, leaving the responsibility entirely to developers.

"While PLANMalaysia indicated during a recent briefing session that this matter will eventually be addressed in the Rules of the Act, there is no assurance that this would happen as the power to make regulations is vested solely in the minister under section 29 of the bill," said Malaysian Bar president Mohamad Ezri Abdul Wahab.

Earlier on Wednesday, Town and Country Planning Department (PLANMalaysia) Director General Datuk Alias Rameli refuted claims that the housing and local government minister would hold sweeping powers under the proposed URA Bill.

He stressed that the minister’s role as head of the Federal Executive Committee under the URA is limited to advising state governments on urban renewal as well as approving and certifying developers for incentives.

Instead, Alias said the process and approvals for urban renewal projects would fall under the jurisdiction of the state executive committee, which is chaired by the respective menteri besar or chief minister.

Stronger safeguards needed

In the statement, the Bar highlighted gaps in protections for tenants and occupiers, who risk displacement without guarantees of temporary rehousing, relocation support or first right of return to equivalent units.

It urged for mandatory public hearings, impact assessments and full disclosure of project terms to enhance transparency.

“Renewal must not become a tool for private profit at public expense. In any event, the absence of a tribunal is problematic. Part IV of the Bill merely provides for mediation, which is insufficient to effectively address disputes,” Mohamad Ezri said.

The body called for the establishment of an independent mediation body with clear powers, alongside provisions for legal aid to affected owners and occupiers.

The Bar’s statement comes as the URA Bill’s second reading was postponed to Thursday (Aug 28).

Housing and Local Government Minister Nga Kor Ming has maintained that the bill will not be withdrawn despite mounting opposition, accusing critics of “playing with sentiment and engaging in destructive politics”.

The URA Bill, which was tabled for its first reading last week, faced opposition when lawmakers debated lowering the consent thresholds for property redevelopments — meant to speed up the process which at times got stuck for years due to opposition by a minority of owners.

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