KUALA LUMPUR, Jan 25 — Prime Minister Datuk Seri Anwar Ibrahim today said the Urban Renewal Bill will be a strategic approach to assist economically disadvantaged Malays.
Explaining the Bill in the Dewan Rakyat today, Anwar said the proposed law would preserve the original status of redeveloped land, which eliminated allegations that it would be used to deprive the community of their reserve land.
“There is no issue about Malay reserve land. These criticisms miss the point. If we truly want to help the Malays, this is how to do it. We are using all our capacity to develop them,” he said during Question Time.
Malay reserve land is land designated under the Malay Reservation Enactment, and may only be owned or transferred among Malays or other indigenous communities, ensuring their long-term land rights and economic stability.
Today, Anwar cited Razak Mansion as one example of this approach being successfully implemented despite allegations and concerns over Malay reserve land, and highlighted his administration's commitment to Malay reserve land.
“I want to emphasise that this is the first government — since independence in 1957 — to designate 50 acres of Bandar Seri Malaysia as Malay reserve land.
“No one before that did it. So, for me, let us not bring that (Malay reserve land) issue," Anwar said.
He was responding to supplementary questions from Gopeng MP Tan Kar Hing, who asked if the Urban Renewal Bill was necessary, noting that several successful development projects — including Kerinchi Residency, Razak Mansion, and Seri Pahang Condominium — were completed without it.
Tan also inquired about the state government's role in implementing the proposed legislation.
Anwar explained that while development could proceed without the law, the process is extremely time-consuming — potentially taking up to a decade — or requiring use of land reclamation laws or lengthy court battles.
He added that when cases go to court, compensation follows the property's value at that time, noting that in all court disputes, the compensation amounts awarded tend to be significantly lower.
The proposed Bill that is expected to be tabled later this year, could allow the “en bloc” sale of entire strata developments, even if not all owners agree.
An en bloc sale occurs when all owners of a building agree to sell their units to a single buyer, often for redevelopment purposes.
Currently, under Section 57 of the Strata Titles Act 1985, a strata development can only be sold if there is 100 per cent agreement from the owners.
The proposed Bill seeks to lower this threshold, depending on the age and condition of the building. The new law would lower the consent threshold required for an en bloc sale, depending on the age of the building.
Buildings under 30 years old could be sold with 80 per cent consent from the owners, while those older than 30 years would require only two-thirds consent. For buildings that are deemed unsafe or abandoned, just half of the owners would need to approve the sale.