KUALA LUMPUR, 26 JANUARY 2026 – The Institute for Strategic Analysis and Policy Research (INSAP) notes the Cabinet’s decision to withdraw the Urban Renewal Bill (URA) from Parliament for further amendments. This is the responsible step, given the scale of public concern and the breadth of stakeholder feedback that has emerged since the Bill was first tabled.

INSAP urges the Government to treat this pause as a genuine reset. The revised Bill must incorporate the full range of stakeholder inputs raised across consultations, civil society engagements, professional bodies and affected communities. Crucially, protections must extend beyond registered owners to include groups who are routinely exposed to displacement risk such as tenants, low-income households, elderly residents, persons with disabilities and owners with outstanding loans. The concerns highlighted in multiple stakeholder proposals, including the issue of tenant protection raised in UMNO’s URA convention resolutions, reflect a legitimate gap that must be addressed directly and explicitly.

At this juncture, INSAP’s position is that the Government must table the subsidiary rules and regulations that will operationalise the Act together with the revised Bill, or at minimum publish them for public scrutiny prior to re-tabling. The public’s anxiety is not only about what the Bill says in principle but about the mechanisms they will actually be subjected to in practice. Without sight of the implementing framework, Parliament and the public cannot properly assess whether safeguards are real, enforceable and accessible.

In particular, the implementing framework must provide clarity on:

1. Consent and verification mechanisms on how consent is counted, verified, audited and challenged including protections against manipulation and pressure tactics.
2. Compensation and rehousing standards, where the full package of entitlements including replacement housing options, transitional support, relocation planning and treatment of vulnerable households are made clear to affected residents.
3. Tenant protections, such as minimum protections for rental households, anti-displacement measures and clear responsibilities of developers and authorities.
4. Independent oversight and dispute resolution, including grievance channels, appeals, timelines, enforcement powers and remedies including penalties for intimidation or coercion.
5. Transparency and public participation, such as disclosure requirements for project proposals, impact assessments and decision criteria, as well as clear roles between federal, state and local authorities.

In addition, INSAP also echoes the calls of stakeholders, such as residents’ associations, for the Government and relevant authorities to manage the interim period responsibly. Where redevelopment applications and approvals are already in the pipeline, authorities should apply heightened scrutiny and moratorium to pause approvals where safeguards are not demonstrably in place. Any transition must prioritise community stability and prevent a rush of speculative behaviour while the national framework remains unsettled.

INSAP’s interest in this issue has been consistent since March 2025, where INSAP’s Civic Lens work brought discourse to the risks of an urban renewal framework that lacked clear safeguards and credible oversight. This was followed by a series of forums and stakeholder engagements involving residents’ groups, civil society organisations and relevant professional voices. These efforts culminated in the submission of a joint memorandum to Parliament in October 2025 and the sharing of our recommendations with key stakeholder platforms including UMNO’s special committee processes on the URA.

INSAP will continue to engage constructively so that Malaysia can achieve urban renewal that is fair, transparent and rights-based. INSAP stands ready to support further consultations and technical discussions in the interest of achieving a workable framework that protects communities, restores public confidence and delivers genuine urban renewal outcomes.

Datuk Dr. Pamela Yong
Chairman
Institute of Strategic Analysis & Policy Research (INSAP)

-MCA Comm-