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LETTER | Renewal or displacement - hidden cost of urban progress

LETTER | As the Urban Renewal Bill approaches Parliament this year, I urge Malaysiakini readers and lawmakers to ditch the race and religion spin.

If we just objectively look at the reduction of consent threshold from 100 percent to between 51 percent and 80 percent, then the issue is not about identity - it is about real social equality issues that affect all of us.

Consider a retired couple, both primary school teachers, who bought a medium-cost condo in suburban Kuala Lumpur for RM78,000 in 1988. They paid it off by 2008, raised two kids, and now scrape by on a pension covering basics.

Their kids have grown up and have families of their own but are still struggling financially in the lower-middle-income group, unable to offer much help.

Their building is old, maintenance neglected, but its location is hot, thanks to mature infrastructure like trains, schools, and other amenities that have since come on-stream.

Under the Urban Renewal Bill’s 75 percent consent rule for buildings exceeding 30 years, a developer secures the majority, redevelops it, and compensates them RM200,000 - when a new unit costs RM450,000.

With no means for another mortgage, they rent, burn through the cash, and edge toward homelessness. This could very well be anyone’s story.

Why did 75 percent agree? Likely because this group - financially better off - has moved forward, owning other homes or investments, leaving the less mobile, like this couple, outvoted.

The poor are stripped of their veto rights here, a power they held under the old 100 percent consent rule. Now, their home’s fate hinges on others who have already cashed out or upgraded, while they’re stuck.

Poor strata management

The bill is pitched as urban renewal - fixing decaying blocks - but it dodges the elephant in the room: why do buildings rot?

Strata management is a disaster - JMBs and MCs are broke or mismanaged, sinking funds vanish, and enforcement is a ghost.

The Strata Management Act 2013 exists, but where are the teeth? No inspections, no penalties - unlike places like Singapore, where upkeep keeps old flats standing.

This isn’t just one couple’s struggle - it reflects thousands in suburban KL’s aging strata.

The bill targets symptoms with rebuilding, yet ignores the root cause: lax maintenance policing.

Social equality demands that if redevelopment is indeed an altruistic undertaking, redeveloped units should be given free to original homeowners - not a RM200,000 payout that leaves the poor losing their say to wealthier neighbours.

The government should strengthen the commissioner of buildings, lock strata fees for repairs, and penalise neglect - otherwise, renewal becomes a developer’s gain at the expense of regular folks’ security.

Let us focus on fairness for all.


The writer is a retired banker with decades in senior roles, now a social activist spotlighting public issues from finance to fairness.

The views expressed here are those of the author/contributor and do not necessarily represent the views of Malaysiakini.


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