Lowered consent threshold to accelerate redevelopment while protecting owners' rights, says Nga

• "For this new Act, we propose that the consent threshold be no less than 80%. This means at least eight out of 10 property owners in the area must agree."

KUALA LUMPUR (Oct 22): Housing and Local Government Minister Nga Kor Ming said that the new proposal under the Urban Renewal Act (URA) to lower the threshold of consent from strata owners is intended to speed up the redevelopment of sites, while still safeguarding owners' rights.

Currently, the Strata Management Act 2013 requires full consent from all strata owners before redevelopment can proceed, a requirement Nga described as "unreasonable and against public interest", especially for areas that are no longer safe to live in.

"For example, if an apartment has 1,000 units, and 999 residents agree to the redevelopment while one objects, the project cannot move forward," he told Parliament on Monday. That’s a major hurdle to redevelop places like the Highland Towers, he said.

The Highland Towers in Ulu Kelang, Selangor, collapsed on Dec 11, 1993, when a landslide caused by heavy rains led to the destruction of one of three 12-storey buildings, resulting in 48 deaths.

"For this new Act, we propose that the consent threshold be no less than 80%. This means at least eight out of 10 property owners in the area must agree," Nga noted.

Nga said that the ministry, through PLANMalaysia, had conducted comparative studies with other countries, including New Zealand, which requires a 75% consent threshold, Hong Kong (90%) and Australia (75%).

Nga explained that under the URA, strata property owners who agree to participate in the redevelopment project will have two options: either receive a new home on a one-for-one basis, or relinquish ownership in exchange for a profit.

“To safeguard ownership rights, a mediation committee will be established to resolve any disputes that may arise during the urban redevelopment process,” he added.

The URA, currently being drafted, has undergone 52 stakeholder engagements, involving federal agencies, state governments, local councils, the Attorney General’s Chambers, higher education institutions, industry players, professional bodies, and non-governmental organisations.

A policy memorandum was presented to the Cabinet earlier this year, and on Oct 17, it was submitted to the Parliamentary Special Select Committee on Infrastructure, Transportation, and Communication.

“Further engagements are also planned with the Sabah and Sarawak governments starting in November,” Nga said.

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