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House Buyers Group warns of policy clash in Federal Urban Development plans

The National House Buyers Association says the government’s push for transparency in urban planning is undermined by the proposed Urban Renewal Bill, warning that conflicting policies could erode public trust and property rights

12:08 PM MYT

 

KUALA LUMPUR — The National House Buyers Association Malaysia (HBA) has warned of a policy contradiction within the federal administration, despite welcoming the government’s renewed emphasis on transparency and democratic oversight in urban development.

In a statement today, HBA said it noted Federal Territories Minister Hannah Yeoh’s recent remarks that large-scale projects in Kuala Lumpur should no longer proceed without prior disclosure and meaningful input from elected Members of Parliament.

The association said Yeoh’s statement reflected a growing recognition that “over-centralised and closed-door decision-making in urban development has contributed to a serious trust deficit”.

It added that “democratic participation must occur before decisions affecting communities are finalised”.

However, HBA said the acknowledgement also highlighted “a fundamental policy inconsistency at the federal level”.

“While one ministry moves towards greater transparency, early consultation and democratic oversight, the proposed Urban Renewal Bill (URA) advanced by the Housing Ministry proceeds in the opposite direction,” the statement read.

HBA said the URA weakens consent thresholds, centralises discretion and defers essential safeguards to executive mechanisms rather than embedding them in primary legislation.

“These two approaches cannot logically co-exist,” it said.

The association stressed that urban redevelopment directly affects private property rights, security of tenure and community stability.

“Such matters cannot be governed by guidelines, assurances or post-approval processes,” HBA said.

It added that safeguards must be “clear, statutory and enforceable from the outset”, warning that where rights are uncertain, “public confidence erodes and investment certainty deteriorates”. — January 20, 2026

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