KPKT and JMB/MC to jointly oversee tender process in urban renewal projects — Nga Kor Ming

• Inferring the controversies surrounding the proposed Urban Renewal Act, the KPKT Minister refers to the forthcoming major legislative reform as Akta Pemulihan Strata dan Bandar (Akta PSB) and said: “Akta PSB stipulates that all existing owners will not get anything less favourable than the original”.

MELBOURNE (March 20): To ensure full transparency in the renewal of urban strata developments, the tender process will be jointly overseen by the Housing and Local Government Ministry (KPKT) together with the respective joint management bodies (JMBs) or management committees (MCs), said KPKT Minister Nga Kor Ming.

Inferring the controversies surrounding the proposed Urban Renewal Act (URA), Nga outlined the government’s strategic vision for sustainable growth in the property sector under the forthcoming major legislative reform, which he refers to as Akta Pemulihan Strata dan Bandar (Akta PSB) (Strata and Urban Rejuvenation Act).

He reaffirmed Malaysia’s commitment to urban renewal and sustainable housing solutions in a keynote address at the Asia Real Estate Leaders (AREL) Study Trip & Housing Dialogue here last week.

Organised by the Real Estate and Housing Developers’ Association (Rehda) Malaysia Institute and Monash University, the study trip provided delegates an opportunity to explore relevant sites aligned with the Malaysian government’s key priorities, such as urban renewal, strata laws, affordable housing, and senior living.

Akta PSB: a more embracing act for urban renewal

As a legislative reform, the Akta PSB covers four main areas of renewal: redevelopment, regeneration, rejuvenation, and conservation.

“This is not a new agenda,” Nga stated, sharing that neighbouring countries like Hong Kong and Singapore started in the early 1990s.

“Back home, urban renewal guidelines have existed since 2012. In the context of pre-Merdeka buildings, the average lifespan is 70 to 80 years old. Many of these buildings have reached their lifespan and have been found to be structurally unsafe by the Fire and Rescue Department (Bomba).”

He also confirmed that homeowners would be allocated a unit within the renewal project.

“Akta PSB stipulates that all existing owners will not get anything less favourable than the original,” he stressed.

Citing successful urban renewal projects such as Razak Mansion and Bangsar South in Kuala Lumpur, he noted that property values in these areas have surged post-renewal. For example, Razak Mansion units, originally valued at RM70,000, are now worth close to RM420,000, with homes doubling in size from 421 sq ft to 821 sq ft.

Akta PSB introduces a consent threshold of 80% — one of the highest globally, similar to Singapore’s model. For abandoned projects, the threshold will be lowered to 51% to account for interventions where owners cannot be traced or have fled, said Nga.

The government has earmarked 534 sites nationwide suitable for urban renewal, with a projected gross development value of RM355.3 billion.

Nga also said that safeguards are in place to ensure that developers' track records are scrutinised and checked for accountability in project execution.

Taman Awam Madani aims for 1,000 public parks in 10 years

Beyond physical infrastructure, Nga maintained the government’s broader efforts to enhance community well-being. Under the Taman Awam Madani initiative, KPKT aims to develop 1,000 public parks in 10 years, with RM1 million allocated per park to create safe, open spaces for recreation and mental health benefits.

Additionally, he addressed the longstanding issue of unpaid maintenance fees in public housing. The government plans to implement a new access card system, tested in Johor’s People’s Housing Project (PPR) communities, which has significantly improved maintenance collection rates — from 45% to 94%.

To manage cost and improve affordable housing quality, KPKT has secured 32 parcels of land from state governments to be used for PPR. Nga gave the reassurance that better value and higher quality builds can be achieved via the People, Private & Public Partnership (4P).

“New PPRs should be GreenRE-certified and will have solar panels to power up common facilities. We hope to launch the first one in Selangor this year,” he said.

Affordable housing makes up more than half of total transactions in 2024

Nga noted that the total value of property transactions in Malaysia increased by 18% in 2024, amounting to RM223.2 billion.

“Affordable homes priced below RM300,000 accounted for 52.5% of total residential transactions in Malaysia last year alone,” he said.

The ministry is currently in the midst of implementing several initiatives such as the Affordable Home Programme (Rumah Mampu Milik — RMM), Citizen-Friendly Home Programme (Rumah Mesra Rakyat — RMR) and 1Malaysia People’s Housing Programme (PR1MA).

To balance supply and demand, Nga added that KPKT is keeping a close eye on new property launches, with 195,000 units approved in 2024 alone. The ministry anticipates that sales will surpass the targeted RM180 billion in 2025 amid sustained market demand.

Developers with successful renewal projects overseas should do the same for nation

Nga also took the opportunity to call on Malaysian developers to reinvest domestically following their successful international ventures.

“Malaysia has world-class developers leading urban renewal projects abroad. Gamuda Land, for example, is at the forefront of a RM2.8 billion urban renewal project in Australia. If we can do this overseas, why not at home?” he asked.

He urged companies to reinvest their offshore profits to Malaysia, which will not only strengthen the domestic economy but support the ringgit’s stability.

With Malaysia assuming the ASEAN Chairmanship in 2025 and preparing to bid for UN-Habitat’s General Assembly Presidency (2026-2029), Nga emphasised the government’s commitment to regional and international collaboration.

He concluded: “Through bold policies, strategic urban renewal, and fostering investor confidence, we are shaping a more resilient, inclusive, and forward-thinking housing sector for Malaysia”.

Learning from Australia to balance private and public housing

Rehda Institute is a Malaysian-based think tank on regional housing. At the housing dialogue attended by more than 180 Malaysian and Australian industry leaders,  Rehda Institute chairman Datuk Jeffrey Ng Tiong Lip shared that developers in Malaysia are required to provide price-controlled housing — a unique mandate that distinguishes the country globally.

On this note, Ng said: “Melbourne has been chosen as our study trip destination because it is ranked as the world’s second most liveable city in 2024.

“The city of Melbourne excels in urban renewal initiatives. It is therefore invaluable for us to observe how Australia approaches social, affordable housing and open market housing. For instance, our visit to the Community Housing Victoria site in Prahran highlighted an innovative model that combines urban redevelopment with social housing through rental models, ensuring public ownership”.

Echoing Malaysia’s housing initiatives, Victoria’s Small Business and Employment, Veterans, and Youth Minister Natalie Suleyman said: “We want to provide all Victorians with the choice of well-designed homes at affordable prices in places where they can thrive. Housing hits at the heart of the expectations young Australians have about their future”.

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