Architects institute urges refinements to Urban Renewal Bill to better protect public interest

• “PAM reiterates its commitment to supporting the government in achieving meaningful urban renewal. However, it is crucial that the law fully safeguards public interest, empowers communities, and upholds the highest standards of professional practice.”

KUALA LUMPUR (Aug 27): The Malaysian Institute of Architects (PAM) has voiced support for the government’s initiative to introduce a structured and sustainable Urban Renewal Bill, while urging key improvements to ensure that public interest is fully safeguarded.

In a press statement issued on Monday (Aug 25), PAM said the current draft presents opportunities for clearer mechanisms, stronger safeguards and broader stakeholder inclusion before the legislation is passed.

“PAM reiterates its commitment to supporting the government in achieving meaningful urban renewal. However, it is crucial that the law fully safeguards public interest, empowers communities, and upholds the highest standards of professional practice,” said PAM.

Among its recommendations, PAM raised concerns over the impartiality of the “approved developer” in Section 17, warning that assigning key responsibilities such as obtaining consent and assessing building conditions to developers may result in conflicts of interest.

It proposed that these functions be transferred to an independent body to protect property owners from undue influence.

PAM also called for greater clarity around consent thresholds, urging the government to specify that crossing such thresholds should trigger structured mediation—not automatic redevelopment or compulsory acquisition.

“Compulsory acquisition is intended as a last resort to resolve a deadlock, not an immediate consequence of meeting the threshold. PAM recommends that the bill should determine the minimum final percentage that must be achieved before the Land Acquisition Act is invoked; otherwise, redevelopment should not proceed,” it said.

Highlighting the lack of a formal appeals mechanism, PAM proposed statutory rights to challenge the designation of urban renewal areas and any potential use of compulsory acquisition powers.

To improve inclusivity, PAM urged that the bill mandate a co-design process, led by architects, within the mediation committee, to ensure community representation and equitable design outcomes.

It also highlighted the imbalance faced by community-initiated projects, noting that the requirement for 100% consent is disproportionately stringent compared to thresholds applicable to government or developer-led schemes.

“The requirement for unanimous (100%) consent for owner-initiated projects creates a significant imbalance compared to the lower thresholds set for government- or developer-led initiatives. This disparity weakens community empowerment. PAM recommends harmonising the consent thresholds and providing clearer pathways for management corporations (MCs) and resident groups to take a proactive role in initiating renewal,” PAM stressed. 

Finally, the organisation recommended that professional architects be formally included in federal- and state-level urban renewal committees, to ensure that decisions reflect technical soundness and holistic planning.

As Penang girds itself towards the last lap of its Penang2030 vision, check out how the residential segment is keeping pace in EdgeProp’s special report: PENANG Investing Towards 2030.