Urban Renewal Bill: Govt to raise consent threshold to 80% for all projects, demographics to be considered as debate pushed back to next Parliament sitting

• Housing and Local Government Minister Nga Kor Ming: This adjustment reflects the government’s respect for stakeholder input. Setting the threshold at 80%, regardless of the age of the building, is still a reasonable level that balances redevelopment needs with the rights of the remaining 20% of owners.

KUALA LUMPUR (Aug 27): The government will raise the consent threshold for urban renewal projects to 80% across the board, Housing and Local Government Minister Nga Kor Ming said on Thursday.

Originally, Clause 19 of the Urban Renewal Bill (URA Bill) set different thresholds: 80% for buildings less than 30 years old, 75% for those over 30 years, and 51% for abandoned or structurally unsafe buildings certified by a professional engineer.

Tabling the bill for its second reading in the Dewan Rakyat, Nga said the revision was made following recommendations from the Parliamentary Select Committee on Infrastructure, Transport and Communications during a special discussion on Aug 21.

“This adjustment reflects the government’s respect for stakeholder input. Setting the threshold at 80%, regardless of the age of the building, is still a reasonable level that balances redevelopment needs with the rights of the remaining 20% of owners,” he said.

Nga added that Clause 18 will also be amended to ensure demographic data is factored into the planning of urban renewal projects, following concerns that redevelopment could drastically change local communities.

“The amendment will require demographic information of affected areas to be considered by both the federal and state executive committees. This is to ensure projects are managed properly and prevent sudden changes in community composition,” he said.

Debate and voting on the bill are now set to take place at the next Dewan Rakyat meeting in October.

The URA Bill, tabled for its first reading last week, has drawn criticism over consent thresholds for redevelopment—intended to expedite projects often stalled by objections from a minority of owners.

Critics have also flagged provisions empowering the federal minister or state authority to declare any property an “urban renewal area”, which would allow compulsory acquisition under the Land Acquisition Act.

In a separate statement on Thursday, Nga stressed that the bill guarantees fair or better benefits for owners who agree to participate in urban renewal projects.

The legislation also provides that owners must be offered the option to remain at the same location and be kept informed of project progress upon request.

“When the approval threshold is reached, only then will discussions begin between owners and developers. It is not about taking houses immediately but starting negotiations so residents have the right to bargain and claim fair compensation. Residents will also be retained at the same location after the urban renewal process,” he said.

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.