DATE OF RELEASE: 22nd AUGUST 2025
Dear Editor,
PRESS RELEASE: URBAN RENEWAL ACT MUST BE REVAMPED — GOVERNMENT AND MPs MUST HEAR THE RAKYAT BEFORE TABLING
The Federation of Malaysian Consumers Associations (FOMCA) strongly urges the Government not to table the Urban Renewal Act (URA) in its current form. The Act is too sensitive, too far-reaching, and too dangerous to be rushed into Parliament without a fundamental revamp and genuine stakeholder consultation. At stake are not just buildings and land but the very homes, livelihoods, and security of Malaysian families.
While urban renewal can bring positive benefits such as modernising infrastructure and upgrading public amenities, Malaysia is not ready for such a sweeping law. On the ground, developers have already been approaching residents with half-truths and promises that are either misleading or incomplete. Too often, critical details on compensation, relocation, or project timelines are hidden, leaving homeowners unable to make informed decisions. Even more troubling, there are instances of intimidation where residents feel pressured to sign consent documents. For most Malaysians, a home is their largest lifetime investment, built through decades of hard work and representing priceless family memories. To expose citizens to such risks without strong safeguards is unacceptable.
If the URA is introduced in its current state, it will tilt the balance dangerously in favour of developers, effectively becoming a developers’ charter instead of a people’s charter. FOMCA insists that a 95 percent consent threshold is the only acceptable safeguard. Any lower threshold — whether 75 or 80 percent — would open the door to forced displacement. In a 100-unit block, for instance, an 80 percent threshold would mean 20 families could lose their homes against their will. These dissenters are not obstacles; they may have very valid reasons — financial constraints, deep sentimental ties to their homes, or distrust in the compensation process. A 95 percent safeguard ensures that redevelopment can only proceed with overwhelming community support and compels developers to negotiate fairly instead of forcing through projects with a slim majority.
FOMCA welcomes the fact that some Members of Parliament have spoken up to delay the URA and to highlight concerns about the consent threshold and the rights of homeowners. Their stance is in line with what ordinary citizens have been voicing: that the URA is far too sensitive to be pushed through Parliament without proper checks. MPs who call for caution are right to insist that the rakyat must be heard. This Bill must not be decided in closed rooms between developers and Ministers, but in full consultation with the communities who will be most directly affected.
Any credible Urban Renewal Act must guarantee fundamental rights for homeowners. Families must have access to clear and accurate information in languages they understand, not sales pitches masquerading as proposals. Consent must be verified independently and transparently, free from coercion. Disputes must be resolved through independent tribunals with equal representation, and legal aid must be made available so that no homeowner is left voiceless. Compensation must reflect not just market value but also relocation costs and the emotional loss of uprooting families. Above all, dignity and non-coercion must be guaranteed, with harsh penalties for any threats or intimidation by developers.
Urban renewal should be about empowering communities, not displacing them. It should preserve social bonds, not tear them apart. It should strengthen trust between the people and the government, not erode it. If the URA is rushed through Parliament in its present form, it risks leaving ordinary citizens exposed to exploitation and injustice, undermining public faith in both government and law.
FOMCA therefore calls on the Government and all Members of Parliament to delay the tabling of the URA until it has been fully revamped, and until meaningful consultations have been conducted with residents, homeowners, consumer organisations, and civil society. The 95 percent consent threshold must remain as a non-negotiable safeguard, and strong legal protections must be enshrined in law before any redevelopment project is allowed to proceed. Until then, the URA must not move forward.
Urban renewal must be a people’s process, not a developer’s process. Parliament must hear the rakyat — and act in their best interest.
Dr. Saravanan Thambirajah
Chief Executive Officer