Rehda Institute: Urban Renewal Requires Constructive Dialogue, Not Fear

Marcus Liew
Jun 2
2 min read

As Malaysia moves closer to introducing new urban renewal laws, Rehda Institute urges for evidence-based, people-centric policymaking grounded in global best practices—calling on all stakeholders to engage in constructive dialogue rather than be paralysed by fear or misinformation.

Urban Renewal Is a Public Safety and Health Priority

Rehda Institute stressed that urban renewal isn’t just a development issue—it’s a public safety imperative. Many older strata-titled buildings, particularly those built between the 1960s and 1980s, now face serious hazards including:

Faulty wiring posing fire risks
Asbestos and lead paint hazards
Water damage, mould, and pest infestations due to deteriorating plumbing and roofing

Left unaddressed, these issues can lead to community-wide decline—lowering property values, deterring investment, and compromising resident safety. A structured approach aligns with the UN’s Sustainable Development Goal 11, which promotes sustainable cities and safe, affordable housing.

Reform Must Be Democratic, Not Unanimous

While some critics demand 100% agreement for any redevelopment, Rehda Institute points out that this is impractical and undemocratic. Mature nations like Singapore, Hong Kong, and Australia have long adopted supermajority thresholds (75–90%) for en bloc redevelopment—striking a balance between individual rights and societal progress.

These systems:

Emphasise owner-led initiatives, not developer-driven schemes
Include strong legal safeguards against coercion
Ensure transparent compensation and phased relocation plans to minimise disruption

“Majority rule is a democratic principle, not a loophole,” Rehda Institute stated, noting that allowing a tiny minority to block renewal can stall progress and trap communities in decay.

Compensation and Displacement: Valid, but Solvable Concerns

Rehda acknowledged the emotional and financial impact of displacement but argued that global examples show it can be managed fairly through:

Transparent, third-party valuation processes
Financial assistance and temporary housing support
First-right-of-refusal for residents in new developments
Staged redevelopment for smoother transitions

Malaysia’s urban renewal framework must be empathetic, flexible, and tailored to local contexts, drawing lessons from both international successes and missteps.

Act Now—Before Urban Decay Spreads

Citing examples from Detroit, Kowloon Walled City, and Mumbai, Rehda warned that inaction leads to severe long-term economic and social costs. Signs of decay are already visible in parts of Kuala Lumpur, with poorly maintained flats and resident flight signalling the early stages of decline.

Delaying reform now could mean billions in rehabilitation costs later, not to mention the irreversible damage to communities.

Land Rights Will Be Protected

The Institute addressed fears over ownership loss—especially among senior citizens—stating that new laws will be built on transparency, public consensus, and legal safeguards.The government has committed to protecting land rights, ensuring that no one is unfairly forced out.

A Call for Pragmatism, Not Paralysis

Rehda concluded by urging all parties—supporters and critics alike—to move forward together:

“Malaysia now stands at a pivotal juncture—not only to address local challenges but to demonstrate commitment to global sustainability goals. The new urban renewal laws should not be derailed by fear or misinformation. Let us choose progress over paralysis.”

Rehda will continue fostering dialogue, with two more events on urban renewal scheduled in the coming weeks.