Prime Minister Datuk Seri Anwar Ibrahim has assured that the proposed Urban Renewal Act will protect homeowners by providing them with revitalised properties, compensation, and living benefits throughout the redevelopment process.
Speaking through his senior press secretary, Tunku Nashrul Abaidah, during the Prime Minister’s Office (PMO) daily briefing on Wednesday, Anwar emphasised that the renewal project must be conducted with homeowners’ consent, ensuring their agreement before proceeding.
A key aspect of the bill is its compensation framework, which ensures homeowners retain their rights to the redeveloped site. Compensation will be based on the future market value of their property rather than the current value, allowing owners to regain ownership of their upgraded homes.
“This is different from the current system, where compensation is based on present market value, making it difficult for homeowners to afford new properties,” Anwar stated.
To support residents during the reconstruction phase, the bill proposes various benefits, including transit housing rental payments, ex-gratia payments for home renovations, and additional financial aid.
Addressing concerns, Anwar dismissed claims that the bill would displace Malays and Bumiputera from urban areas or solely benefit developers. He affirmed that the legislation aims to uphold the dignity of urban residents, particularly Malays, allowing them to continue living in their communities with improved living conditions.
The bill also sets a consensus threshold for redevelopment. Projects involving buildings less than 30 years old require 80% resident approval, while those over 30 years old need 75%. For abandoned or derelict housing, only a simple majority of 51% is needed.
“This bill offers a solution to the long-standing struggle between homeowners and developers,” Anwar concluded.
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