The Urban Renewal Convention also urged amendments to 10 existing laws that relate to urban planning and redevelopment.
In addition, the convention proposed the establishment of a dedicated government agency to oversee redevelopment, regeneration, and refurbishment projects.
Umno vice-president Johari Ghani, who heads the party’s special task force on the bill, said the initial draft contained too many gaps, leaving it unable to provide homeowners with comprehensive protection.
“We cannot sacrifice the rights and interests of homeowners in the name of urban redevelopment,” he told a press conference held at the World Trade Centre Kuala Lumpur following the convention.
Johari said the convention did not oppose redevelopment, but wanted it to be carried out in a fair, inclusive and transparent manner while preserving urban history, culture and communities.
Among the key proposals tabled at the convention were:
Developer accountability
Only financially sound and reputable developers should be allowed to undertake urban renewal projects, with strict enforcement through performance bonds and liquidated ascertained damages for delays.
Fair compensation
Compensation to homeowners must reflect the full property value, relocation disruption costs, and any loss of income, not just current market value.
Consent thresholds
A minimum consent threshold of 95% should be required for buildings under 50 years old, and 90% for older properties.
Land acquisition safeguards
The Land Acquisition Act should be invoked only as a last resort and not be used as the default mechanism to acquire property.
The convention also called for the following:
- Recognition of long-term tenants and owners with outstanding loans as stakeholders, ensuring they are not excluded from compensation or resettlement plans.
- A mandatory clause prohibiting forced eviction before the consent threshold is achieved.
- Joint approvals from both state and federal governments for all redevelopment projects, with active involvement of the menteri besar or chief minister, and not solely federal ministers.
- Clear legal definitions distinguishing “redevelopment”, “regeneration”, and “refurbishment” to avoid abuse of power and implementation confusion.
- Criminalising any form of coercion by developers against residents, with legal action against offending developers or their agents.
- Mechanisms to prevent gentrification, ensuring original residents can continue living in their areas despite rising costs or demographic shifts.
Strong resistance to the bill from both the opposition and some in the government bloc, including Barisan Nasional and seven PKR MPs, prevented the bill from being passed during the last Dewan Rakyat meeting in August.
Debate on the controversial bill has been pushed to the next Dewan Rakyat meeting, scheduled to begin on Monday.