Proposed new Act to inject new life into urban areas


PUTRAJAYA: An Act will be drafted to ensure systematic, well-planned and efficient urban renewal efforts that will further spur the country’s economic growth, says Nga Kor Ming.

The Local Government Development Minister said with the proposed Act, there would be better planning to redevelop areas that are isolated, old or no longer economical, and turn them into areas that can offer a good quality of life for urban dwellers.

He said the Cabinet had decided the process be expedited and for it to be tabled as soon as possible, with a target set for next year.

“This is one of the push factors that enables the redevelopment, rejuvenation and revitalisation of our cities,” he said.

Nga said it was important for Malaysia to have the Act in place as the country’s urban rate was expected to increase to up to 85% by 2040.

The Town and Country Planning Department, together with Malaysia Productivity Corporation, have been tasked with carrying out a regulatory impact analysis to evaluate the need for a dedicated law for urban renewable initiatives, in line with practices of developed countries.

“As a prelude, we now have an urban renewal implementation guideline in place which local authorities, developers and other stakeholders can refer to when planning for redevelopment or development,” he said when launching the guideline yesterday.

To a question, the minister said that once the Act is in place, it would apply to all states and he hoped it would also be used by Sabah and Sarawak.

The Act would also look into “consent threshold” where currently, agreement from 100% strata title owners was required for any renewable measures to take place, whereas the rates were much lower in certain developed countries.

“We will study the regulatory impact analysis first before we propose a new rate for the ‘consent threshold’. We will follow due process,” Nga added.

The guideline, which was approved by the Cabinet on Aug 30, among others, touches on four aspects of urban renewal – redevelopment, regeneration, revitalisation and conservation.

Urban renewal processes are necessary in city areas that have declined economically, physically, socially and environmentally, affecting their image and livability.

To encourage the involvement of developers, agencies and original residents in carrying out urban renewable efforts, taxed-based and non-tax-based incentives are being proposed.

This includes exemption for development and infrastructure service fund charges, a reduction in land premium rate, fast track in development and land processes as well as approval for land works, including demolition of existing buildings.

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