National House Buyers Association secretary-general Chang Kim Loong warned that the bill, in its current form, vests “vast and absolute power” in the minister.
Under the proposed legislation, minister Nga Kor Ming will chair the federal executive committee (FEC) tasked with overseeing urban redevelopment nationwide.
Chang highlighted several provisions in the bill, including Section 5, which places civil servants under the control of the minister as chair of the FEC.
Section 13, on the other hand, requires state-level executive committees to consult the FEC on urban renewal projects, while Section 20 empowers the minister-led FEC to determine which developer is qualified to undertake such projects.
“This is similar to allowing the minister to lord over the entire URA framework.
“With such vast power, there is a possibility of favouritism and unchecked authority that may breed corruption. Absolute power corrupts absolutely,” Chang told FMT, adding there was a need for greater checks and balances.
The bill, scheduled for its second and third readings in Parliament on Wednesday, has drawn criticism from civil society groups and residents’ associations.
At a press conference earlier, Chang also questioned why the minister should be given such broad control over residential redevelopment, arguing that it undermines state and local authority.
“If you look through the law carefully, the minister holds all the cards. Even the state executive committee must refer to him on any redevelopment. Why should we give that kind of power to one person?” he said, calling for the bill to be withdrawn.
Tan Booi Charn, chairman of the Kuala Lumpur Residents Action for Sustainable Development Association, criticised the lack of public consultation.
“This bill was supposed to protect and safeguard the rights of the people, but instead, it seems to enrich developers,” he said.
Sukhdev Singh Cheema, a committee member from the Taman Cantek Residents Association, said many residents prefer to hire their own contractors and decide independently on matters involving their homes.
“For redevelopment, we don’t want developers, we want contractors. Let the people decide if their homes need to be demolished, refurbished, or redeveloped. We don’t want this bill, forcing us to make such decisions,” he said.
Yesterday, Nga gave an assurance that compensation for property owners affected by renewal projects under the URA would exceed market value.
The URA aims to replace outdated legislation to facilitate the redevelopment of old and dilapidated urban areas.