The Malaysian government’s proposed Urban Renewal Act (URA) has sparked a heated debate in Parliament, with discussions centered on its necessity, potential risks, and the allocation of power. Opponents are concerned that the bill will infringe on citizens’ property rights and undermine local autonomy, while the government maintains its aim is to resolve the long-standing stalemate in urban revitalization projects.
Main Arguments of Opponents
Low Consent Thresholds Threaten Minority Rights
The most criticized aspect of the URA is its significant reduction of the consent threshold for urban redevelopment. The proposed bill requires: 80% consent from owners for buildings less than 30 years old; 75% for those over 30 years; and only 51% for abandoned structures. Opponents argue that these thresholds are far below the current 100% requirement, potentially forcing dissenting minority owners to comply and compromising their rights.
Constitutional Risks and Property Rights Concerns
Lawyers’ groups, such as Lawyers for Liberty, have warned that the bill might conflict with Article 13 of the Federal Constitution, which guarantees property rights. They specifically highlight Section 21 of the bill, which authorizes ministers or state authorities to designate an “urban renewal area” and proceed with compulsory land acquisition under the Land Acquisition Act, even without the full consent of all owners. N. Surendran, an advisor to Lawyers for Liberty, called this the “greatest threat to Article 13 of the Constitution on the right to property since independence,” and urged for its immediate withdrawal.
Public Displacement Concerns and Pro-Developer Bias
Resident representatives and groups fear that the bill lacks adequate protection for low- and middle-income groups, who may be displaced after redevelopment due to an inability to afford new housing. Critics question the absence of clear guarantees for residents to return to their homes, as well as the lack of sufficient compensation and protection mechanisms.
Excessive Centralization of Power Undermines Local Autonomy
The bill is seen as granting broad powers to federal and state executive councillors, potentially eroding the existing planning and approval functions of state and local governments. The “SG4” states, governed by PAS, issued a joint statement expressing concern that the bill would undermine state government authority over urban planning and disrupt local autonomy.
Racial and Political Implications
Some opponents, including former Prime Minister Mahathir Mohamad and PAS Youth Deputy Chief Hafiz Sabri, fear the bill could lead to a reduction of the Malay population in urban areas, causing them to lose political influence (similar to the “Singapore model”) and escalating racial tensions. They have likened the process to a form of “modern colonialism,” warning that it could lead to the displacement of indigenous populations from their lands.
Government’s Explanations and Rebuttals
No Change in Land Ownership, Voluntary Development
Prime Minister Anwar Ibrahim and Housing and Local Government Minister Nga Kor Ming have clarified that the URA will not alter land ownership status, including for Malay reserved land. They stated that the bill offers a voluntary redevelopment option to provide better living conditions for residents in old and unsafe areas, not to forcibly seize property. Owners will be guaranteed an equivalent or superior alternative home.
Aimed at Efficiency and Breaking Stalemates
The government explained that lowering the consent threshold is intended to overcome the long-standing stalemates caused by a small number of dissenting owners, thereby accelerating urban renewal, especially in urban areas like Kuala Lumpur.
Accusations of “Playing Politics”
Minister Nga Kor Ming criticized opponents for “playing with emotions and engaging in destructive politics,” and stated that the government will not withdraw the bill.
Support from Some State Governments
The Chief Minister of Penang expressed support for the bill, noting the state’s challenges with aging high-rise buildings and citing a successful urban renewal project in Bayan Baru as an example of its feasibility without specific legislation.
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