PETALING JAYA: The intentions behind redevelopment or renewal plans for real estate in Malaysia under the Urban Redevelopment Act (URA) are not geared towards benefiting developers exclusively, says Datuk NK Tong, the president of the Real Estate and Housing Developers' Association (Rehda) Malaysia.
He refuted assertions made by the National House Buyers Association (HBA) suggesting that the proposed redevelopment legislation serves as a means for developers to exploit land for profit.
Tong argued that the implication that this act was devised to enable developers to seize land for profit is entirely unfounded.
"One must recognise the substantial effort involved in making offers, acquiring necessary approvals, and navigating the complexities involved in redevelopment projects."
"You have to know how much work it will take to go and make an offer, to go and get the numbers or percentage to approve for the project to be redeployed. It is a lot of work.
"Anyone here will find it easier to go to a land owner and buy (the land). Some of these proposals will take months or years.
"The developers do not need this, but the city does," he told reporters at Rehda's media briefing on the market outlook for 2024.
Tong said the proposed redevelopment will be for dilapidated projects that are pulling down the urban fabric of Kuala Lumpur.
He pointed out that projects that have been well kept would be expensive for redevelopment.
On the consent threshold, Tong noted unit owners are not under pressure to vote a certain way to make way for the redevelopment.
"The other comment is that there will be social unrest. No, that is not true. Have you seen riots in Singapore because of this? Quite a lot of homeowners are looking forward to it," he said.
The HBA insisted that any plans for redevelopment, rejuvenation, or renewal of real estate in Malaysia must have the unanimous consent of all unit owners.
The honorary secretary-general, Datuk Chang Kim Loon, said industry players have suggested different consent thresholds: 90 per cent for buildings less than 10 years old, 80 per cent for those between 10 and 20 years old, and 75 per cent for those over 20 years old.
The Housing and Local Government Ministry proposed a 75 per cent 'consent threshold' for en-bloc sales for urban redevelopment, aligning with international standards such as those in Singapore, where unanimity is not required.
Chang raised concerns and underscored HBA's strong opposition to any consent threshold other than 100 per cent.
Earlier this month Housing and Local Government Minister Nga Kor Ming said the government is now at the final stage of drafting Malaysia's first URA, which it aims to table in parliament soon.
He said that, up to this stage, the ministry has conducted many town hall sessions with various stakeholders, including Kuala Lumpur City Hall (DBKL) and state governments.
Meanwhile, Tong said that Rehda Malaysia applauded KPKT's vision through the minister to continue to enhance the urban fabric of cities to ensure they remain competitive and attractive globally for the benefit of the rakyat.
"We are awaiting more specific details to be able to engage KPKT, but we believe that they have carefully studied similar models in the region that have operated well for many decades," Tong added.