The overall objective of the URA is good. There is no question that many apartments/ flats built decades ago are in poor condition due to age — infrastructure such as plumbing, electrical systems and even building structure deteriorate from wear and tear. This is especially true of public housing that is poorly maintained, for which there have been limited funds and investments for improvements and upgrades. Some of these buildings have even turned into slums. Older properties are also more likely to lack the amenities and facilities that are common in newer developments. Oftentimes, a redevelopment can boost property values and living quality for existing owners and the neighbourhood, as well as generate economic growth and create new jobs from the resulting construction activities.
The devil is always in the details. This is our word of caution in relation to Malaysia’s proposed Urban Renewal Act (URA), which is currently being drafted. The bill is expected to be tabled in parliament by November. In a nutshell, the objective of the URA is to make it easier for strata owners to redevelop their properties without having to obtain 100% consent.
The current requirement for unanimous agreement — under Section 57 of the Strata Titles Act 1985 [Act 318] — before any termination of strata titles of a subdivided building is approved makes it extremely difficult, if not impossible, for any redevelopment to take place. It is proposed that the threshold be reduced to 80% for buildings that are up to 30 years old, and 75% for those older than 30 years.
