Kota Kinabalu: The Sabah Housing and Real Estate Developers Association (Shareda) reassured property owners in the State that the proposed Urban Renewal Act (URA) Bill 2025 does not apply to Sabah, amid growing public discussion and media coverage on the legislation.
Shareda President Datuk Johnny Wong Chen Yee said property owners should not be unduly worried as land and local government matters in Sabah fall under the State’s own legal and administrative framework.
He said any urban renewal, redevelopment or land acquisition must comply with Sabah-specific laws and approval processes.
“The proposed URA Bill does not extend to Sabah. This distinction is important to prevent misunderstanding and unnecessary concern among property owners, particularly those who own landed residential properties,” he told Daily Express.
Johnny was responding to a report in a national media on the proposed URA Bill 2025 tabled recently in Parliament that threatens to fundamentally reshape Malaysia’s property landscape.
The Bill’s reach extends to landed residential homes, business premises and commercial properties - irrespective of whether they hold freehold or leasehold status. The Bill’s definition of an Urban Renewal Area is area-based, not property-type-based, which means any designated zone can include landed terrace houses, semi-detached homes, bungalows and traditional shophouses.
According to the report, the proposed legislation includes – redevelopment can proceed with as little as 75pc to 80pc consent from owners, the remaining minority can be compelled to vacate through the Land Acquisition Act 1960 and the compensation may take in the form of cash or a replacement property which means that a lifelong landed homeowner could be forced to accept a high-rise condominium in return.
It also reported that Section 19(b) of the Bill introduces a sliding scale for consent, that is, an 80pc consent for buildings 30 years old or less and a 75pc consent for buildings older than 30 years.
Wong said Shareda recognised the importance of constructive dialogue on urban renewal, property rights and community sustainability, noting that well-planned regeneration could enhance livability, safety and economic vibrancy, especially in mature urban areas.
However, he said such initiatives must be carefully balanced with legal clarity, the protection of property rights and the maintenance of public confidence.
At the national level, Johnny said discussions on the URA Bill had raised issues related to consent thresholds, valuation methods and community safeguards, which require careful consideration and meaningful stakeholder engagement.
“Urban renewal, where applicable, should be approached in a measured manner, with clear safeguards and meaningful engagement and consultation, so that redevelopment objectives are balanced with the rights and interests of affected communities,” he said.
Wong reiterated that Sabah remains governed by its own land laws and local government system, and that the proposed URA Bill has no jurisdiction in the State.
He added that Shareda remains committed to working closely with the Sabah Government, local authorities and industry stakeholders to promote responsible development, safeguard homeowner interests and ensure that any future planning initiatives are transparent, balanced and in the best interests of Sabahans.
