URBAN RENEWAL BILL CAN TRANSFORM CITIES BUT NEEDS BALANCED IMPLEMENTATION – LEE LAM THYE

KUALA LUMPUR, March 28 (Bernama) -- The proposed Urban Renewal Bill represents a significant step towards addressing urban decay, housing shortages, and promoting sustainable development in cities, said Alliance for a Safe Community chairman Tan Sri Lee Lam Thye.

He said while the bill, which is expected to be tabled in Parliament, offers numerous benefits, it must be implemented carefully to ensure a “win-win situation” for all stakeholders, including developers and communities affected by redevelopment.

“The bill will facilitate the redevelopment of dilapidated buildings and underutilised spaces, transforming them into modern, sustainable and liveable communities. This will improve the overall quality of life for residents and enhance the aesthetic and functional value of urban areas,” he said in a statement today.

Lee said urban renewal projects will stimulate economic activity by creating jobs in construction, architecture and related industries, while revitalised areas can attract businesses and investors to boost local economies.

He said the bill will also allow for the upgrading of outdated infrastructure such as transportation, utilities and public amenities, ensuring cities are better equipped to meet the demands of a growing population.

“By redeveloping underutilised or derelict properties, the bill can help address housing shortages, particularly in high-demand urban areas, making housing more affordable and accessible.

“Urban renewal projects can incorporate green building practices, energy-efficient designs and improved waste management systems, contributing to environmental sustainability and climate resilience,” he said.

Despite the advantages, Lee cautioned that the bill also presents several challenges, including the risk of displacing long-term residents and small businesses, especially in low-income communities.

“This could lead to social fragmentation and loss of community identity.

“Urban renewal projects often require substantial upfront investment, and there is a risk that costs could escalate beyond initial estimates. This could place a financial burden on both the government and private developers,” he said.

Lee warned that while renewal can improve neighbourhoods, it may also lead to gentrification, making housing unaffordable for existing residents and forcing them out of their communities. The demolition of older buildings and neighbourhoods could also result in the loss of cultural heritage.

To mitigate these impacts, he proposed several measures to ensure that development is inclusive and equitable.

“Engage residents, businesses, and community organisations in the planning process to ensure their needs and concerns are addressed.

“Provide fair compensation to those displaced by renewal projects and offer relocation assistance, including affordable housing options and support for small businesses,” he said.

Lee also urged authorities to require developers to allocate a percentage of affordable housing in their projects and to protect historically significant buildings and neighbourhoods.

He further proposed encouraging public-private partnerships to share costs and expertise, phasing implementation to reduce disruption, and negotiating legally binding agreements to ensure contributions to community facilities such as parks, schools and healthcare centres.

“The Urban Renewal Bill has the potential to transform our cities into more vibrant, sustainable and inclusive spaces. However, its success will depend on careful planning, equitable policies, and a commitment to balancing the interests of developers with the needs of affected communities,” he added.

– BERNAMA