KUALA LUMPUR – The government has decided to retract the Urban Renewal Bill (URB) to allow for improvements before it is reintroduced in Parliament.
Communications Minister Datuk Seri Fahmi Fadzil explained that the decision follows the need to create a more balanced and comprehensive legal framework for urban renewal, particularly addressing issues affecting low-income city dwellers.
“The government wants to ensure the Bill is inclusive, incorporating as many reasonable suggestions as possible into the new draft,” Fahmi said during a press conference at his ministry today.
“The Cabinet has agreed to withdraw the existing draft of the URB and refine it through amendments and additions before it is resubmitted. The new version will be presented at a later date, which will be communicated soon.”
Fahmi, who also serves as the spokesperson for the Unity Government, confirmed that the new draft will be presented to Parliament in a more detailed and thorough form.
Housing and Local Government Minister Nga Kor Ming also mentioned that UMNO had proposed several amendments to the Bill, most of which are expected to be incorporated into the revised version. This move aligns with the government’s goal to strengthen the law, taking into account feedback from MPs and various stakeholders.
The drafting process will continue with the involvement of the Attorney General’s Chambers, although the revised Bill must first be discussed and approved by the Cabinet.
The Bill aims to address dilapidated housing in urban areas, with a focus on improving living conditions and ensuring sustainable development. It covers three types of projects: redevelopment (demolition and rebuilding), regeneration (repairing or upgrading buildings), and revitalisation (upgrading without demolition).
However, resistance to the Bill from opposition groups and some government members, including Barisan Nasional and seven PKR MPs, prevented its passage during the last Dewan Rakyat session in August.
Minister Nga Kor Ming had earlier stated that Prime Minister Datuk Seri Anwar Ibrahim would decide when the Bill will undergo its second reading in Parliament.
The URB is being proposed to improve safety, enable redevelopment, and enhance housing and public facilities, particularly in older urban areas. However, concerns have been raised regarding property rights, with critics arguing the Bill could lead to forced evictions or unfair land acquisitions, particularly among minority property owners.
Under the current Strata Titles Act 1985, redevelopment requires unanimous consent from all owners. The URB proposes reducing the threshold to 75% for buildings older than 30 years, which could potentially bypass objections from a minority of owners. – January 23, 2026