“The (quantum in) compensation will be based on future market value,” his senior press secretary, Tunku Nashrul Abaidah, said in a broadcast on Facebook at noon today.
Tunku Nashrul pointed out that this is a departure from the current system where the compensation is determined by consultants or the court based on prevailing market value.
“This often makes it difficult for those affected to buy a new home as prices are significantly higher than the compensation received,” he added.
Anwar was addressing concerns that homeowners may not be able to afford to repurchase their homes, whose value is expected to increase significantly with the renewal.
The compensation and the right to buy back their property are among the benefits that homeowners will receive during and after the construction period.
“Beyond the higher compensation in comparison with current methods, the Act will also provide for various forms of financial support, such as rental payments for transit housing, ex-gratia payments for property renovations, and other allowances to help sustain homeowners during the construction period,” Nashrul said on behalf of the prime minister.
“This ensures that redevelopment prioritises social justice, in line with the Madani framework.”
Anwar also stressed that urban renewal projects must be conducted through consultation with homeowners to obtain their agreement to participate.
“Therefore, claims that the URA will displace Malays and Bumiputera from urban areas or favour developers are false,” he reiterated.
It was previously reported that the URA bill is expected to be tabled in Parliament by June or July.
While the proposed Act is aimed at revitalising dilapidated urban areas, it has been a contentious piece of legislation.
Critics have raised concerns over fears that there would be en bloc sales if the threshold for consent is not reached.
Opposition parties such as PAS have also warned that it could threaten Malay land rights and displace lower-income urban communities.
PM condemns slapping incident in Johor
Separately, Anwar condemned the recent incident where a non-Muslim was slapped for eating in public in the daytime during Ramadan.
“What is the point of discussing Islam and its beauty, especially during Ramadan, if it does not instil inner strength and instead fuels anger, disrupts peace, and threatens social harmony?” Nashrul said on behalf of the prime minister.
Earlier today, the Johor Bahru magistrates’ court granted a discharge not amounting to an acquittal (DNAA) to Abdul Razak Ismail, 65, the senior citizen accused of the assault, pending a fresh charge against him.