Developers' projected profits to factor into replacement property valuation under proposed Urban Renewal Bill

Malaysia's Housing Minister Nga Kor Ming says projected profits of developers will be considered when valuing replacement properties for homeowners affected by urban redevelopment under the proposed Urban Renewal Bill. The bill, tabled in August 2025, remains on Parliament's order paper after debate

KUALA LUMPUR (Oct 21): Developers' projected profits from urban redevelopment projects will factor into how replacement properties for existing homeowners are valued under the proposed Urban Renewal Bill (URA). Housing and Local Government Minister Nga Kor Ming said affected property owners would be entitled to terms that are no less favourable, including replacement properties that reflect the value of their existing homes.

The valuation would take into account future values to be realised by developers, based on projected profits that would be regulated and agreed upon by the government, he said in a written parliamentary reply to Fong Kui Lun (PH-Bukit Bintang) on Tuesday (Oct 20). Fong had asked about existing legal mechanisms for the compulsory acquisition of abandoned strata buildings that pose risks to public health and safety.

The URA, which was tabled in Parliament in August 2025, aims to establish a structured legal framework for redeveloping ageing and dilapidated urban residential areas. However, the bill has drawn criticism over its proposed consent thresholds for redevelopment, with opponents arguing that they are too low and could undermine homeowners' rights. The debate and voting on the bill were postponed after Nga presented it for its second reading in Parliament on Aug 28, 2025, amid objections over the proposed consent thresholds.

In January this year, Communications Minister Datuk Seri Fahmi Fadzil said the Cabinet had decided to withdraw the bill to allow improvements to be made. However, the bill has yet to be formally withdrawn from Parliament and remains on the order paper.

In his latest parliamentary reply, Nga said the URA was intended to complement existing legal mechanisms for dealing with dilapidated or abandoned buildings, providing a broader framework for urban renewal while protecting property owners' rights and interests. Existing mechanisms under the Strata Titles Act 1985 allow for the acquisition of strata properties, but their scope is limited to buildings under strata schemes, he said. The proposed URA would provide a complementary mechanism for more comprehensive efforts to rehabilitate urban areas, with an emphasis on consultation, participation and the protection of property owners' rights.

Nga said the government remained committed to addressing abandoned and dilapidated buildings that could pose risks to public health and safety, while ensuring urban areas remained safe and liveable. “The government cannot remain silent and allow dilapidated old buildings to continue endangering the public and hindering the country's development,” he said.