No element of coercion, gentrification issues in drafting Urban Renewal Act, says KPKT

• "The negotiation method carried out is comprehensive between the authorities, whether federal or state, and each registered property owner, without exception."
• Therefore, the KPKT said the statement by Muar member of parliament Syed Saddiq Syed Abdul Rahman regarding the PSB, which is feared to marginalise the underprivileged, is inaccurate and does not reflect the actual policy and provisions in the relevant act.

PUTRAJAYA (Feb 19): The Ministry of Housing and Local Government (KPKT) has emphasised that there are no elements of coercion or gentrification issues in the drafting of the Urban Renewal Act (PSB).

This is because the key mechanism for implementing the PSB is obtaining the property owner's consent through negotiation and not through compulsory acquisition.

"The negotiation method carried out is comprehensive between the authorities, whether federal or state, and each registered property owner, without exception," said the KPKT in a statement here today.

The ministry said that the negotiation method will ensure property owners receive back all their rightful rights and interests, especially the reacquisition of new properties in accordance with the value of existing properties but based on future valuations that will be covered by developers based on profit projections that will be controlled and agreed upon by the government.

According to the statement, the government, whether federal or state, will provide various incentives as a strategy to drive the successful implementation of the PSB project, with a primary focus on benefits for the original property owners.

"Therefore, through the ownership of new properties with higher values, it is to ensure the retention of property owners residing in the same area or location with an environment and infrastructure that have higher value in terms of economy, new infrastructure and environmental quality," said the statement.

According to the KPKT, the retention of owners and original residents proves that there are no elements of land or property seizure, nor does it raise issues related to oppression, eviction or gentrification.

Therefore, the KPKT said the statement by Muar member of parliament Syed Saddiq Syed Abdul Rahman regarding the PSB, which is feared to marginalise the underprivileged, is inaccurate and does not reflect the actual policy and provisions in the relevant act.

The KPKT said that the main basis for the formulation of the PSB has taken into account 10 principles that strategically ensure the transparency of government administration and guarantee the maintenance of rights enjoyed by registered property owners.

Among the 10 principles are owner consent, retention of original residents, safeguarding the interests of landowners and cost of appropriate abatement charges, conducive temporary settlements and evaluation of urban renewal site criteri

Meanwhile, the KPKT announced that the issue regarding the consent threshold of between 75 and 80 per cent is a threshold value for the authorities to initiate the PSB project, subject to the achievement of that value which will be obtained through negotiations with each property owner.

According to it, the failure to reach that threshold will prevent the authorities from continuing the PSB project while fully considering the views and wishes of the residents.

"This is to ensure the rights of property owners involved with the relevant PSB," according to the statement.

In addition, KPKT announced that the government is also providing mediation facilities that will be established by the authorities based on legislative power to address certain issues.

Clearly, the threshold value is to ensure that the feasibility of the project can be determined through the approval of the majority of residents who are constrained by various urban issues and are in an area or habitat that is dilapidated, unsafe and has a declining quality of life.

KPKT also said that the government is helping the marginalised group to overcome the problems that are burdening them, especially in urban areas through the PSB.

EdgeProp.my is currently on the lookout for writers and contributors to join our team. Please feel free to send your CV to [email protected] 

Looking to buy a home? Sign up for EdgeProp START and get exclusive rewards and vouchers for ANY home purchase in Malaysia (primary or subsale)!