Kuala lumpur: The government has decided not to adopt the en-bloc sale model in any urban renewal project to avoid forced relocation and gentrification, said PLANMalaysia deputy director-general (Development) Saidin Lateh.
According to BERNAMA News Agency, Saidin explained that the en-bloc approach practiced in countries like Singapore, Hong Kong, and parts of Australia allows property owners to collectively sell and relocate. However, this method contradicts the Urban Renewal Bill (RUU PSB), which ensures owners the right to return to replacement units at no cost.
"We will not implement en-bloc sales. In other countries, once 80 or 90 percent of residents agree, a tender can be opened, owners receive compensation, and move out. Malaysia takes a different approach. We will secure 80 percent consent to begin consultations, and we guarantee that owners can return and continue living in the same area once construction is completed," Saidin stated after a Jom Ngopi KPKT dialogue session with the media.
Saidin noted that the urban renewal process will remain negotiation-based, with no project proceeding without majority approval. He added that any proposed urban renewal area must be declared by the state government before undergoing technical assessments, further negotiations, and the drafting of a development model prioritizing original owners.
"The 80 percent threshold only triggers the technical studies and plan preparation, but efforts continue to secure higher levels of agreement," he said, acknowledging challenges such as untraceable owners, inheritance issues, overseas migration, and property caveats. "We must be realistic. If 95 owners agree but five do not, it would be unfair to disregard the majority who have long lived in substandard housing," he added.
Under the Bill, owners will receive larger and higher-quality replacement units without incurring any costs, including relocation, temporary rental, and early maintenance expenses, which will be covered by the developer. "Owners will return to their replacement units, while those who choose to relocate elsewhere will receive cash compensation based on market value," he explained, emphasizing that the government is committed to preventing gentrification and preserving existing demographic composition.
To bolster community confidence, especially among Malay residents, Saidin mentioned that government-linked companies (GLCs), government-linked investment companies (GLICs), state-owned companies, UDA Holdings Bhd, and MARA will be prioritized as developers. The Urban Renewal Bill is expected to be tabled again in Parliament next month.