Latest news with #StrataTitlesAct1985
New Straits Times
3 days ago
- Politics
- New Straits Times
URA bill's broad scope may open door to abuse, says residents' group
KUALA LUMPUR: The Kuala Lumpur Residents Action for Sustainable Development Association believes that the proposed Urban Renewal Act's broad scope could open the door to ambiguity and potential abuse. The coalition's public policy adviser JS Han said a typical redevelopment process begins with acquiring consent from residents in exchange for compensation. "For those who agree to participate in the redevelopment, there are usually two types of packages — either you agree to take on a replacement unit, and they will pay you some rental provisions to wait for a couple of years, or you sell your unit to the developer," he said. Han said under the Strata Titles Act 1985, the consent threshold that needs to be achieved by the developer is 100 per cent. He said developers, particularly small-scale and individual agents, had been approaching residents well before the bill was announced. Han said this was due to the relatively low-entry barriers compared with conventional property development, where developers must purchase land outright. If the bill is introduced as proposed, the consent threshold for redevelopment will be reduced to 80 per cent for buildings under 30 years old, 75 per cent agreement for buildings over 30 years old, and a simple majority (51 per cent) for abandoned or derelict housing. "It falls short of a fair, transparent, and equitable urban renewal process that we looked forward to," said Han, adding that the bill's broad scope opens the door for ambiguity and potential abuse. He warned that the use of the Land Acquisition Act 1960 as an enforcement mechanism for dissenters — those who do not agree to redevelopment — was concerning. Han also expressed concern over the alleged lack of community participation mechanisms on designating areas for urban renewal within the bill, warning that in its current form, the bill risks becoming a tool to facilitate commercial profits, rather than encourage good urban planning principles. "The communities that are impacted by redevelopment are actually the least able to withstand the financial burdens that come from project delays and abandonment." He said while urban renewal was "inevitable", the proposed Urban Renewal Act must be improved to suit the unique circumstances of each location. Han said the coalition acknowledged that some residential properties in the capital might be dilapidated, but cautioned against redevelopment based merely on age. He said compensation must be fair and equitable, backing the government's sentiment that no resident should be worse off after redevelopment. Han added that compensation models could be far more creative, including the use of profit-sharing models and shares in commercial rental space for mixed-use developments. "Rather than converting one (housing unit) for one, why don't you convert one for two or one for three? "And when he rents out the other one, at least that will provide income that will pay future higher maintenance."
New Straits Times
3 days ago
- Business
- New Straits Times
Refine Urban Renewal Act bill, experts tell govt
KUALA LUMPUR: With the proposed Urban Renewal Act set to be tabled in Parliament this month, experts have called for the government to refine the bill, cautioning that a one-size-fits-all approach risks undermining its effectiveness. They said the bill, which aims to revitalise deteriorated urban areas in the country, must ultimately strike a balance between the valid concerns of homeowners and the government's efforts to address urban decay. It aims to allow redevelopment, revitalisation and rejuvenation projects to proceed without the consent of all homeowners involved. First announced in 2023 by Prime Minister Datuk Seri Anwar Ibrahim, a draft of the bill was published by the Town and Country Planning Department (PLANMalaysia) on Feb 21 for public consultation through the Unified Public Consultation (UPC) website. According to the draft, renewal needs 80 per cent consent from homeowners for 30-year-old buildings, 75 per cent for those older than 30, and 51 per cent for abandoned or unsafe buildings. Currently, for strata titles, developers must acquire 100 per cent consent to terminate a strata scheme for redevelopment, as stipulated under the Strata Titles Act 1985. For landed titles, there are no such statute and consent that must be obtained from each individual landowner for their respective lot. The draft bill states that the government would ensure homeowners who have consented will receive an offer "no less favourable" than what they currently enjoy, appointing a mediation committee to reach an "amicable agreement" with them. Anwar said the government's move to introduce the urban renewal law was rooted in the need to provide better living conditions for Malaysians long trapped in dilapidated housing. He said the legal status of land involved in the urban renewal projects would remain unchanged, regardless of whether it was privately owned, under state authority, or located on Malay reserve land. CLEARER SAFEGUARDS NEEDED Henry Butcher Malaysia director and founding partner Lim Eng Chong said clearer safeguards, a transparent tender process and greater fairness to property owners were crucial. He said there should be a proper transparent tender process to receive proposals, review and awards. He raised concern over the clause allowing compulsory acquisition of land or buildings approved for renewal, which makes no clear mention of how fair compensation will be determined. "Yes, such mechanism can be found in the Land Acquisition Act itself, but I think it should be clearly spelt out here to ensure fairness to proprietors," he said. Lim also called the bill's thresholds of consent for affected properties "arbitrary", questioning the rationale behind them He said the engineer's recommendation mentioned in the draft bill, and as provided in the Street, Drainage and Building Act, to determine whether a property is derelict is key in preventing negligence or abuse of the bill and its role should be expanded. EMPLOY TARGETED APPROACH Universiti Kebang-saan Malaysia (UKM) provost Professor Emeritus Dr Barjoyai Bardai said the bill should include exem-ptions and nuanced guidelines to account for structural condition of properties or their historical value. "We need to have specific criteria for certain types of land or property, because the same standards can't be applied broadly as is currently being proposed," he said. Barjoyai noted that some flats over 30 years old, while still structurally sound, lacked modern amenities such as lifts, yet offered no incentive for private developers to invest in upgrades. "This might be where the government could instead focus on improvements and rejuvenation for these areas." He acknowledged that the concept of the proposed legislation mirrored Singapore's urban redevelopment model, where apartments are typically rebuilt every 25 to 30 years and owners are offered replacement homes in the same location. "So the question is: has the time come for Malaysia to follow what Singapore has done?" He added that although Malaysia did have older apartments, their concentration was only high in a handful of urban areas in the country, such as the Klang Valley. He urged policymakers to consider a more targeted approach. "Whether it's low-density or high-density housing, if there's a historical factor or the buildings are still in good condition, there could still be room for improvement rather than demolition." Centre for Market Education research fellow Dr Consilz Tan said the bill must ultimately strike a balance between the valid concerns of homeowners and the government's efforts to address urban decay. "Each urban renewal project must consist of members from the community and conduct needs-based analysis when redeveloping the area," she added, urging for clarity in the proposed legislation. At the same time, she believes the bill is able to address the issue of urban decay and infrastructure upgrades where we will be able to prevent urban slums and enhance the living standards. Tan said the Urban Renewal Bill provides a legal framework for revitalising these areas, ensuring modernised public utilities, better transport networks, and to improve safety measures. On Aug 8, Housing and Local Government Minister Nga Kor Ming said he planned to table the the bill this month. In April, he said the bill was in its final stage, with the final draft submitted to the Attorney-General's Chambers for final vetting. He said the ministry had undertaken extensive consultations during the drafting process, describing it as one of the most thorough exercises ever conducted for a piece of legislation. In March, National House Buyers Association said any law that enabled developers to enforce the will of a majority of homeowners to deprive a minority of their property without adequate compensation would contravene Article 13 of the Federal Constitution. In May, the Malaysian Institute of Planners called on the government to provide clearer include clearly defined mechanisms for resolving disputes among property owners.
New Straits Times
31-07-2025
- Business
- New Straits Times
13MP targets 500,000 affordable homes by 2030 in major housing reform push
KUALA LUMPUR: Two selected targets have been set to support national housing reform during the 13th Malaysia Plan (13MP), including the completion of 500,000 affordable housing units by 2030, compared to 179,769 units as of March 2025. The Strata Management Act 2013 and the Strata Titles Act 1985 will be amended to separate the jurisdictions of ownership and management in an effort to strengthen the governance of stratified buildings. Housing reform is one of the key priorities under the 13th Malaysia Plan (RMK13) to address the cost of living and improve the well-being of the people. This reform will focus on increasing the supply of quality, livable, and inclusive housing, improving access to financing, and enhancing the efficiency of housing regulation and management.
The Star
24-07-2025
- Politics
- The Star
Dr Wee asks why consent threshold rates differ under proposed urban renewal law
PETALING JAYA: The government should explain its rationale for setting different consent threshold rates based on the age of properties under the proposed urban renewal law, says Datuk Seri Dr Wee Ka Siong. The MCA president expressed concern over the sudden change by the Housing and Local Government Ministry from the original 100% consent requirement. He questioned how the revised thresholds align with fairness and transparency, especially in developments involving existing strata property owners. "I asked the ministry to clarify the justification for setting different consent thresholds under URA (the proposed Urban Renewal Act), particularly when the original requirement was full consent. "I also sought details on engagement sessions to assess the potential impact of rising population density and traffic, as well as mitigation plans," he wrote in a Facebook post on Thursday (July 24). Dr Wee then shared the parliamentary written response he received from the ministry, which explained that the varied threshold rates were determined in consideration of public interest and to meet the strategic goals set under the urban renewal programme. The ministry also further clarified that the original 100% threshold pertains specifically to the requirement for unanimous consent under Section 57 of the Strata Titles Act 1985, which governs the termination of strata titles in stratified buildings or land. Dr Wee's questions come amid growing public interest in how the law would be implemented once passed and its possible long-term implications on urban communities across Malaysia.
The Star
28-06-2025
- Business
- The Star
Flat dwellers risk losing properties due to arrears
GEORGE TOWN: More than 70,000 property owners here have defaulted on their parcel rent payments, with arrears totalling some RM12.5mil since 2019. The Penang Land and Mines Office (PTG) recently revealed that these homeowners risk losing their strata parcels due to unpaid arrears as of June 1. PTG director Dr Faizal Kamarudin said the highest number of defaulters is in the northeast district with 32,000 affected accounts. Under the Strata Titles Act 1985, properties may be forfeited if arrears are not settled within three months of receiving a legal notice. The parcel rent, billed annually, was introduced in 2019 to replace the uniform quit rent system for stratified titles such as condominiums, apartments and flats. It is separate from assessment tax and maintenance fees paid to the Joint Management Body or Management Corporation. Property agent Joyce Lee said many property owners, particularly first-time homebuyers, are unaware of parcel rent. She explained that unlike utility bills and maintenance fees, parcel rent does not carry immediate consequences such as service disconnection, making it easier for homeowners to overlook. 'The amounts are relatively small, and because they aren't bundled with the monthly management fees, they often go unnoticed. 'The fragmented nature of the payment system, where each tax or utility requires logging in through different portals with no auto-debit function or centralised reminders, makes it even more inconvenient,' she added. Besides a lack of awareness, Lee believes other contributing factors include rising living costs and inflation, which have led some owners to prioritise more urgent payments. 'There's a common belief that they can simply pay it later, especially when selling the property. 'Some sub-sale owners may not even realise that parcel rent is still under the previous owner's name, adding to the confusion and non-compliance,' she said. Lee added that more public education is needed, especially targeting new homeowners, along with possible incentives, early payment discounts or stricter penalties to encourage better compliance. Property valuer Mohd Fitri Hashim, 42, said parcel rent arrears could accumulate significantly if left unpaid. 'Parcel rent is calculated based on the size of the individual strata unit. 'For example, the parcel rent for a typical low-cost flat would be below RM30, while a standard condominium unit of about 1,000sq ft would need to pay around RM50,' he said. Mohd Fitri added that for luxury condominium owners who pay about RM400 annually in assessment tax, their parcel rent would be less than RM100. 'For example, at Rifle Range Flats in Air Itam with over 3,000 units in the nine blocks, each unit of about 400sq ft size has to pay about RM25 in parcel rent yearly,' he said. At the nearby All Seasons Place, the 850sq ft condominium's yearly parcel rent comes to about RM24. In comparison, the quit rent for a 1,523sq ft landed property in Teluk Kumbar on the southern tip of the island is RM42 annually.
