Urban Renewal Act: Minister’s role limited as powers rest with states, says town and country planning DG

Monday 21 Sep 2026

Make The Edge Malaysia your preferred source on Google

KUALA LUMPUR (Aug 27): Town and Country Planning Department (PLANMalaysia) Director General Datuk Alias Rameli on Wednesday refuted claims that the housing and local government minister would hold sweeping powers under the proposed Urban Renewal Act (URA).

PLANMalaysia is the agency that drafted the URA Bill, aimed at expediting property redevelopment by lowering consent thresholds.

At a press conference in Parliament, Alias stressed that the minister’s role as Head of the Federal Executive Committee under the URA is limited to advising state governments on urban renewal, as well as approving and certifying developers for incentives.

Instead, Alias said the process and approvals for urban renewal projects would fall under the jurisdiction of the state executive committee, which is chaired by the respective menteri besar or chief minister. (In the case of the federal territories, that power rests with the federal territories minister).

This includes identifying and declaring urban renewal sites, as well as formulating policies and strategies to be incorporated into gazetted structure and local plans.

State authorities are also responsible for handling land-related applications under the National Land Code 1965 (Act 56 of 1965) and the Land Acquisition Act 1960 (Act 486), including applications for compulsory land acquisition for redevelopment.

In addition, all planning and technical approvals — such as layout plans, development plans, and earthwork plans — are processed through the one-stop centre at the local authority level, Alias noted.

He further emphasised that the URA would not override existing laws or encroach upon state jurisdiction over land, planning, and development, as stipulated under Section 3 of the proposed Act.

Previously, the National House Buyers Association had reportedly raised concerns over the “vast and absolute power” allegedly granted to the housing and local government minister under the URA, warning that it could lead to favouritism and abuse.

The URA is slated for its second reading on Thursday, after Housing and Local Government Minister Nga Kor Ming affirmed it would not be withdrawn despite mounting criticism.

Edited ByAniza Damis

Text Size