KUALA LUMPUR (Jan 23): The Cabinet has decided to withdraw the Urban Renewal Bill to allow further refinements, following feedback from Members of Parliament, Cabinet ministers and coalition partners, Communications Minister Datuk Fahmi Fadzil said.
According to Fahmi, the decision reflects the government’s intention to address concerns raised during earlier discussions, particularly those highlighted by Umno. While he did not elaborate on the specific issues, he confirmed that many of the proposals put forward by the party will be incorporated into a revised draft of the legislation.
He added that preparing the updated version of the bill will require additional time before it can be tabled again in Parliament.
The Urban Renewal Bill, first introduced in August 2025, was intended to provide a formal legal framework for redeveloping ageing and deteriorating urban residential areas. The proposed legislation was seen as a key policy instrument to unlock redevelopment potential in mature city locations, including older neighbourhoods within Kuala Lumpur and Selangor.
However, the bill attracted significant public and political debate, particularly over the proposed consent thresholds required for redevelopment. Critics argued that the thresholds were set too low, raising concerns over property owners’ rights and the potential displacement of residents.
As a result, the bill’s second reading — which had been scheduled earlier this week — was postponed, with debate and voting deferred pending further review.
The temporary withdrawal of the Urban Renewal Bill introduces a degree of uncertainty for developers and investors evaluating redevelopment opportunities involving commercial property in KL, office space in Bukit Jalil, and mixed-use projects near established townships such as Subang and Puchong. At the same time, the review process is expected to result in a more balanced framework that better aligns urban regeneration objectives with homeowner protections.
For the property sector, particularly stakeholders involved in redevelopment of older strata buildings and land assembly in prime urban locations, the revised bill could play a pivotal role in shaping future redevelopment strategies across Kuala Lumpur and Selangor once it is reintroduced.
Malaysia