Can we transform run-down, perhaps crime-ridden flats into flashy new condos?
This seems to be the thinking behind Malaysia’s first Urban Redevelopment Act (URA).
Housing and Local Government Minister Nga Kor Ming said that once the law is approved by Parliament, only 80 percent of owners of old flats need to consent to redevelopment, rather than the current 100 percent.
This will create “abundant investment opportunities” to change the “city skyline” and generate “hundreds of billions” in gross development value (GDV), he said.
Hmmm… does this sound like a developer talking? Nga explained that we need to do urban renewal because many old flats could become “ugly, dilapidated” slums in 20 years. He added that Kuala Lumpur City Hall has identified 139 potential sites fit for rebuilding.
Urban redevelopment. Rejuvenation. Renewal. Call it what you like. It sounds good in theory.
But rather than just knocking down low-cost properties, how about also reallocating land from the elites towards wider social benefit?
Golf courses to houses?
There is a sprawling 27-hole Civil Service Golf Club (KGPA) in Kuala Lumpur. It lies between two MRT stations - Taman Tun Dr Ismail and Phileo Damansara.
This government golf course is perfect for turning into a mix of affordable flats and higher-end condos. Why? Because it will prove that our Madani leaders place more priority on the rakyat’s housing over an elite hobby.
Plus, it will be a great example of “transit-oriented development” that helps reduce city traffic jams.
But of course, we don’t want to deprive our civil servants of their precious pastime. Build another KGPA for them. It doesn’t need to be near MRT stations because heaven knows that golfers don’t like to walk, not even on the course.
Or work out a deal for them to play at one of the many courses around the Klang Valley. We have too many golf clubs anyway.
If the civil servants still insist on their dear old club, can they give up say nine or 18 of those 27 holes for housing?
This too is urban rejuvenation, not just knocking down old flats.
Fix old problems first
The National House Buyers Association (HBA) says the ministry will end up biting more than it can chew in its proposed urban renewal plans.
HBA instead calls for stricter ministry enforcement on persistent problems such as defective materials and poor workmanship of housing projects.
It adds that the ministry should not just issue developers licences unless there are safety nets to avoid future abandonment of housing projects.
Without such measures, HBA fears that property owners who take part in “renewal schemes” might end up getting burnt if the projects are abandoned.
Most property developers will continue to over-promise and under-deliver unless the ministry intervenes, it adds.
Residents relocation
What happens to the residents of those run-down, crime-ridden flats? Will they be “rejuvenated” with new condo units?
More likely these will be too expensive so they will be given compensation (hopefully good) and asked to move elsewhere. To other dilapidated flats perhaps? Will they bring their bad habits, such as littering, with them?
So, how will existing social issues be fixed? This has been a long-standing issue.
Think City has a programme called Kita-untuk-Kita or K2K that aims to empower communities to better manage low-cost flats themselves, rather than just depending on government help. Such initiatives can be further explored.
New public flats
Nga says there are plans for a new model of public housing named the Program Residensi Rakyat (PRR). These include the buzzwords “well-integrated, sustainable, and liveable”. Green spaces and community centres are promised.
Each PRR unit will be built at a cost of RM300,000 but sold to B40 folks at just RM60,000. Some money will be set aside for maintenance funds.
Sounds great. I really hope this succeeds. The only problem is that not enough funds have been allocated for such subsidised social housing.
Nga himself notes that Singapore’s HDB (Housing Development Board) has an annual budget of S$30 billion (RM105.5 billion), while Malaysia’s PPR (Program Perumahan Rakyat) only gets RM550 million, which is way too small.
Should the budget for PPR be radically increased? Why wasn’t this done by previous politicians who claimed to “protect” Malays, who are the majority of PPR residents?
Is it because those politicians had a vested interest in working with developers to make money selling more pricey flats?
I hope the Madani government can fix that by providing much more subsidised public housing. Please don’t forget the medium-cost category too.
Renewal for elites?
How much demand will there be for the ministry’s urban renewal when we still have an oversupply of property?
For example, the Klang Valley saw the opening of 15 new malls in the past two years. Yet people are doing more shopping online.
In 2022, Malaysia also had 27,746 residential units built but still unsold, with a total value of RM18.41 billion.
No doubt, some of these are in less desirable locations. So presumably, the urban renewal will be in high-demand areas.
Another issue is: will it be geared mainly towards high-end “redevelopment”? Namely, the “hundreds of billions” of GDV that Nga talked about?
Nga, a minister from the DAP, should be aware that his party has been called “Developers Action Party” before, for seeming to favour big commercial interests.
I hope Nga proves critics wrong. So rather than just more swanky condos for urban renewal, the ministry must also make it compulsory for redevelopments to provide free or cheap public facilities. These include parks plus sports and cultural spaces.
Don’t forget bicycle or e-scooter lanes so that people can access LRT/MRT/bus stations easily rather than pay for ever more expensive Grab car rides.
To their credit, the ministry has improved two hawker centres and a riverfront park at Teluk Intan, Perak. The ministry has also spent money to renovate the iconic Taiping market. But many were aghast when contractors dismantled it although Nga had earlier said, “We cannot simply tear it down and rebuild.”
Nga also announced that the ministry did a total of 5,196 development projects in 2023 with an allocation of RM700 million.
These include drains and street lighting, multi-purpose halls, recreational facilities, and “clean, fragrant” public toilets.
Nga said: “Every sen spent should benefit the people… No wastage, leakage, or extravagance.”
I hope that spirit continues. Please don’t forget the rakyat in urban renewal projects. - Mkini
ANDREW SIA is a veteran journalist who likes teh tarik khau kurang manis. You are welcome to give him ideas to brew at tehtarik@gmail.com.
The views expressed here are those of the author/contributor and do not necessarily represent the views of MMKtT.
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