Housing and Local Government Minister Nga Kor Ming has assured that property owners involved in housing renewal projects under the proposed Urban Renewal Act (URA) will receive compensation exceeding market value.

Citing past redevelopment successes, Nga pointed to the Razak Mansion Flats in Bandar Tun Razak and Kampung Kerinchi in Kuala Lumpur, where residents were upgraded from 400 sq ft units valued at RM70,000 to 800 sq ft homes worth RM450,000. “I will ensure compensation given is better than the property’s current value. Why politicise something good when our only intention is to help the people?” he said, as reported by Berita Harian.

Nga, who is also Teluk Intan MP, made the remarks during the launch of the Teluk Intan PR1MA project and sales gallery. He explained that the URA is designed to safeguard owners’ interests and prevent abuse by developers. The Act will feature mechanisms such as a mediation committee and an executive committee chaired by the minister to ensure fair decisions that prioritise public interest.

He further emphasised that the proposed 80% consent threshold for redevelopment was established in 2013 after a comprehensive three-year study. The threshold, he noted, is among the strictest globally—higher than Shanghai’s two-thirds requirement and Tokyo’s 60%.

“For those who disagree, negotiations will be carried out through the mediation committee,” Nga said, reiterating that the URA aims to create a win-win outcome for both property owners and developers.

Nga urged all parties not to politicise the initiative, stressing that urban renewal is ultimately meant to enhance residents’ quality of life while ensuring fair compensation and transparent processes.

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