Put URA on Hold: How the Urban Renewal Act Threatens Homeowners

Cally Ting
Mar 4
3 min read

A Law That Benefits Developers, Not the People

The Urban Renewal Act (URA) has been positioned as a transformative policy to modernize aging urban areas in Malaysia. However, behind the promises of progress lies a troubling reality: forced evictions, inadequate compensation, and mass displacement—especially for the urban Malay community.

With lowered consent thresholds for en-bloc sales, the URA paves the way for developers to profit at the expense of ordinary homeowners. If passed, the Act will not just reshape Kuala Lumpur, but will set a dangerous precedent for the rest of Malaysia, putting millions of homeowners at risk.

This law must be put on hold immediately before it turns into one of the biggest land grabs in Malaysian history.

1. How URA Works – And Why It’s a Threat

Under the current en-bloc sale laws, all property owners in a development must agree before it can be sold for redevelopment. The URA changes this by making it easier for developers to acquire land even when many homeowners object:

Only 75% agreement needed for buildings over 30 years old
Only 80% agreement needed for buildings under 30 years old
Only 51% agreement needed for abandoned properties

This means that up to 25% of homeowners can be forced to sell their homes against their will. Once the majority agrees, the minority has no choice but to accept compensation and leave.

For urban Malays living in city centers, this law could mean losing generational homes, being pushed to the outskirts, and receiving unfair compensation that won’t allow them to buy new homes in the same area.

Example: Low Compensation for Homeowners

Take Kampung Sungai Baru, a recent redevelopment case in Kuala Lumpur:

Compensation offered: RM400–RM500 per sq ft
New developments in the same area sell for RM1,500–RM2,500 per sq ft

Homeowners were given less than one-third of the actual market price. For many, even after selling, they couldn’t afford to buy a new home in KL. This is exactly what the URA will legalize on a massive scale.

2. Not Just a Kuala Lumpur Problem – It’s a Nationwide Crisis

Many Malaysians believe the URA is only about KL, but that is not true.

The Housing Ministry has already identified 534 sites across Malaysia for redevelopment.
These sites are worth a staggering RM355 billion.
While 139 sites are in Kuala Lumpur, the rest are in Selangor, Johor, Penang, Negeri Sembilan, and Perak.

This means that once URA is passed, state governments will have the power to push through en-bloc sales anywhere in the country.

Imagine historical towns, traditional Malay neighborhoods, and affordable flats in other states being demolished—all under the same law. No homeowner in Malaysia will be safe from forced redevelopment.

3. Do We Really Need More Empty Buildings?

The URA claims to "modernize" cities, but the truth is that Malaysia already has an oversupply of high-end properties that people cannot afford:

Office spaces in KL have a 28%-29% vacancy rate.
Over 40,000 unsold high-rise residential units remain on the market.
2.7 million sq ft of new shopping malls were added in 2022, with another 3.3 million sq ft coming soon—yet many malls remain half-empty.

So why are we demolishing affordable homes to build even more condos and commercial properties that will sit vacant?

The real issue is not a lack of development—it’s a lack of affordable housing and sustainable urban planning.

Instead of supporting developers, the government should be expanding green spaces, improving drainage to prevent flash floods, and building homes that Malaysians can actually afford.

4. The Government’s Role: Defend the People, Not Developers

It is no secret that property developers and corporate investors stand to make billions from the URA. This raises a serious question:

Is the government working for the people or the developers?

The government’s job is to protect property rights, prevent forced displacement, and ensure that urban development benefits all Malaysians—not just a wealthy few.

If the URA passes as it is, it will go down as one of the biggest betrayals of homeowners in Malaysia’s history.

5. Put URA on Hold – Before It’s Too Late

We call for the Urban Renewal Act to be put on hold immediately. The government must:

Hold full public consultations and listen to affected homeowners.
Strengthen legal protections to prevent forced evictions.
Guarantee fair market-value compensation for affected homeowners.
Focus on green spaces and sustainable urban planning, not endless skyscrapers and luxury malls.

If the government does not stand with the people, who will? The rakyat must speak out before it is too late.