KUALA LUMPUR – The Town and Country Planning Department (PLANMalaysia) has sought to dispel concerns that the proposed Urban Renewal Act (URA) would hand unchecked powers to the housing and local government minister.
Director General Datuk Alias Rameli said the minister’s role under the Bill is confined to chairing the Federal Executive Committee, which functions in an advisory capacity.
“The narrative of an all-powerful minister is a fundamental misreading of the law. Executive authority to approve and manage projects under this proposed Act lies solely with the State Executive Committee. The mandate of the federal-level committee is strictly to support this process,” he said, as quoted by Malay Mail Online.
Alias explained that state governments remain the principal decision-makers, with their executive committees empowered to declare renewal zones and integrate policies into local and structure plans.
For the federal territories, the same role falls to the federal territories minister. Land-related matters, including compulsory acquisition, remain governed by existing laws such as the National Land Code 1965 and the Land Acquisition Act 1960, while local councils continue to process technical approvals through one-stop centres.
He stressed that Section 3 of the Bill safeguards state jurisdiction. “The authority, the true repository of executive power over project management, rests firmly in the hands of state governments,” Alias said.
Safeguards and state concerns
The coalition of four states – Kelantan, Terengganu, Kedah, and Perlis (SG4) – has threatened to oppose the Bill.
Alias countered by clarifying that the URA applies only to urban areas and cannot affect protected land.
“Let me be very clear, any land designated as Malay Reserved Land will retain that status permanently. Any development upon it must comply with that designation,” he said, adding that wakaf and customary land, as well as villages, fall outside its scope.
He also noted that state consent was presented to the National Security Council on three occasions, with no formal objections raised before the Bill’s tabling on August 21.
Preventing stalled projects
Alias said the government will certify competent developers to avoid “problematic developers taking on projects they cannot complete”. Incentives will also be administered under strict compliance and ESG standards.
Despite the assurances, SG4 and opposition MPs, including PAS’s Datuk Seri Tuan Ibrahim Tuan Man, remain opposed, arguing that existing legislation already addresses redevelopment. The URA is scheduled for its second reading on Thursday. – August 27, 2025