Alia Salleh
Senior Research Associate
Alia Salleh was a Program Director and is currently on sabbatical pursuing a PhD in Human Geography and Urban Studies at LSE. She brings expertise in urban studies with a research interest on urban redevelopment and mobility justice. She also brings experience in investment analysis and policy planning, having worked as a Special Officer at the Ministry of Finance Malaysia and as an equity and bond analyst at Permodalan Nasional Berhad. Alia holds an MSc in Urbanisation and Development from LSE.
[email protected]Abstract
This article situates the proposed Urban Redevelopment Act (URA) within the context of national net zero commitments.
The URA intends to streamline laws around urban redevelopment for stratified buildings at the federal level. As this may intensify urban renewal projects, we need to be cautious of its environmental impact.
The article emphasises the importance of adopting sustainable practices in urban renewal by encouraging designs that focus on extending the life cycle of existing infrastructure and considering embodied carbon in construction.
_____________
Urban renewal has been identified as one of the goals (Goal 6) in the Kuala Lumpur Structure Plan 2040, with the intention of implementing area improvement programmes such as redeveloping selected areas and conserving certain old buildings, to make the city more vibrant and attractive in the long run (DBKL, 2023). A well-known example would be the regeneration of the Battersea Power Station and surrounding areas, which transformed a decommissioned power plant into a commercial area. Previously derelict, such investment opened up the area for both work and play.
The Urban Redevelopment Act (URA), scheduled to be tabled in Parliament as early as November 2024 (The Edge Malaysia, 2024), is expected to improve Malaysia’s approach to urban renewal as it intends to streamline the laws governing urban redevelopment for stratified buildings at the federal level. Urban redevelopment is one type of urban renewal that involves a holistic change of the existing physical structure through demolition and rebuilding (PLANMalaysia, 2023). Urban renewal also include efforts like revitalisation and conservation.
The main hurdle for redevelopment in Malaysia is the requirement to obtain 100% agreement from strata title owners, as stipulated under Section 57 of the Strata Titles Act 1985 (Act 318), something considered a monumental task. It has been blamed for causing dilapidated housing complexes in both the public and private sectors, as this requirement proves too stringent, making redevelopment near impossible. It has also raised issues as another act, the Land Acquisition Act 1960, has been used in several cases to force compulsory acquisitions for urban redevelopments, resulting in legal battles and protests by affected residents. Therefore, the proposed URA is expected to positively impact Malaysia’s future development by ensuring a proper process for redeveloping idle sites.
With this impending policy change, urban redevelopment is likely to intensify in the coming years, as the framework simplifies land reacquisition for commercial use. While the proposal is highly anticipated and hotly debated, the discourse has centred on the appropriate consent threshold (previously 100%) and governance-related issues. What this author believes is missing from the discussion, however, is the impact of intensifying redevelopment activities on greenhouse gas (GHG) emissions.
This article attempts to situate Malaysia’s urban redevelopment activities within the national ambition to reduce its GHG emissions by 45% by 2030 (Malaysia, 2021) and Kuala Lumpur’s aspiration to reduce carbon emission intensity of GDP by up to 70% by 2030 (DBKL, 2018). It emphasises the importance of factoring life cycle costs when making redevelopment decisions in order to ensure sustainability goals are achieved.
Urban Redevelopment is Set to Intensify in Malaysia with A Streamlined Legal Framework
According to Jabatan Perancangan Bandar dan Desa (PLANMalaysia)’s guidelines, there are four categories of urban renewal in Malaysia (PLANMalaysia, 2023):
• Urban redevelopment: major structural changes through demolition and rebuilding.
• Urban regeneration: the recovery of idle and abandoned sites through the construction of new buildings without altering the features of the area.
• Urban revitalisation: area rejuvenation through repairs, upgrades, and beautification.
• Urban conservation: area conservation for heritage sites that focuses on preserving historical values.
The most common approach to urban renewal in Kuala Lumpur involves demolishing and rebuilding. In this model, a site is first acquired, then the existing buildings on that plot of land are demolished, and replaced with new structures. This process is motivated by the opportunity to increase density on valuable land through a higher plot ratio, thereby unlocking its ground rent potential. It also enables builders to utilise contemporary building techniques and materials, as well as apply designs better suited for the site’s new use.
A notable example of urban redevelopment in Kuala Lumpur is the demolition of low-density (typically four-storey) ‘walk-up flats’ built in the 1970s and 1980s, where their residents are rehoused in apartments with higher density and modern amenities. Examples include the Kerinchi redevelopment (2012-2015), Razak Mansion (2014-2017), and Datum Jelatek (2010-2022). As can be observed, there are significant time gaps between the start and end of these projects as negotiation, rehousing, demolishment, and new construction all require time. There are also smaller- scale redevelopments where private residences, such as old bungalows, are demolished and replaced with modern designs. These kinds of redevelopments are relatively easier to carry out because they do not involve multiple owners.
The main proposal by the URA is to lower the consent threshold from 100% to no less than 80% (The Edge Malaysia, 2024). Based on public consultation documents, such a threshold is proposed to be subject to only buildings aged 30 years and older. A possibly lower threshold is proposed for abandoned projects. As the current Malaysian building standards, namely the Standard Perumahan Kebangsaan, do not explicitly specify a required lifespan for new constructions, this may create unintended new ‘mental threshold’ among developers that allows them to recycle and redevelop land as frequently as every 30 years. This raises a potential moral hazard: if buildings can be renewed every 30 years, would developers be motivated to build longer-lasting structures?
Despite current standards, subpar building quality has already led to dissatisfaction among buyers in a number of cases. According to the Malaysian Institute of Architects, most buildings have a lifespan of 50 years or longer with strict maintenance (PAM, 2024). However, maintenance is frequently overlooked in Malaysia. Setting a lower standard for redevelopment, such as the proposed reduction in residential consent thresholds, may perpetuate this culture of lack of maintenance among dwellers and building managers in Malaysia. Ley & Teo (2014) observe a similar parallel in Hong Kong, where buildings are designed to last 50 years, but poor construction and maintenance often lead to accelerated deterioration, making a 20-year-old building appear old and requiring redevelopment or extensive refurbishment.