Cabinet scraps Urban Renewal Bill for improvements—Fahmi

KUALA LUMPUR (Jan 23): The Urban Renewal Bill has been retracted by the Cabinet to allow for improvements to be made, according to Communications Minister Datuk Fahmi Fadzil. (pictured)

Fahmi said the move comes as the Cabinet heeds concerns raised by members of Parliament, ministers and key partner Umno. He did not specify the issues raised, though he said the problems will be addressed in the new bill.

There were also proposals from Umno, and “almost all of them will be included in the new draft”, Fahmi said. The new version is expected to “take some time” before the bill could see the light of the day, he added.

The Urban Renewal Bill created controversy since the law was tabled in Parliament in August 2025. The legislation aims to establish a structured legal framework for the redevelopment of ageing and dilapidated urban residential areas.

The main criticism has been the proposed consent thresholds for redevelopment, which opponents argue were too low and could undermine homeowners’ rights. The bill was set for its second reading earlier this week before debate and voting were postponed.

Unlock Malaysia’s shifting industrial map. Track where new housing is emerging as talents converge around I4.0 industrial parks across Peninsular Malaysia. Download the Industrial Special Report now.