In the heart of Cheras, a suburb of Kuala Lumpur, the weathered facade of Cantik Apartments stands as a symbol of both nostalgia and contention. The 40-year-old, four-storey block, home to 87 units, has been earmarked for redevelopment under the ambitious Kuala Lumpur Structure Plan 2040. Yet, for many of its long-term residents, the prospect of urban renewal brings not hope, but fear of displacement and unaffordability. As the Malaysian government prepares to table the Urban Renewal Act (URA) in July, a fierce debate has erupted over whether this initiative will rejuvenate ageing neighbourhoods or push vulnerable communities to the city’s fringes.

The Human Cost of Urban Renewal

For residents like Sukhdev Singh Cheema, a 61-year-old retired teacher who has lived in Cantik Apartments for decades, the redevelopment plan feels like a personal betrayal. His family purchased their 1,300 sq ft unit in 1982 for RM75,000, transforming it into a cherished home with plastered ceilings and built-in cabinets. Now, he worries that the proposed changes will force him and his neighbours out, both during construction and after, when maintenance fees could skyrocket.

“Why should the government want to redevelop this apartment block? The only thing that we need is a repainting of the facade and repairing of the external pipes” Mr Cheema told The Straits Times on 24 March 2025. “Currently, we are paying a maintenance fee of RM80 a month and even then some of the retired residents here cannot afford it. What happens when the management fee increases because there are more facilities in the new apartment block? How are the residents going to pay?”

Mr Cheema’s concerns are shared by many in Malaysia’s ageing residential blocks, where low-income and retired residents fear they will be priced out of their own neighbourhoods. His neighbour, 60-year-old retired tour guide Lee Cheok Seng, who bought his flat three years ago for RM315,000, echoed similar sentiments. “Gentrification will definitely happen once they redevelop this place. It will increase traffic flow and there will also be overpopulation. I bought this flat, my first home, because this is a quiet, well-developed area. I don’t want to move out or change homes” he said.

A Controversial Legal Framework

At the core of the controversy is the proposed Urban Renewal Act, which seeks to lower the consent threshold for collective sales of strata title properties for redevelopment. Currently, under Section 57 of the Strata Titles Act 1985, unanimous agreement among owners is required for such sales. The new Bill proposes reducing this to 80 per cent for buildings under 30 years old, 75 per cent for those over 30 years, and just 51 per cent for abandoned developments. This change, while aimed at facilitating urban renewal, has raised alarms about minority rights among property owners.

The government, led by Prime Minister Anwar Ibrahim, insists the Bill is designed to rejuvenate dilapidated estates and improve living conditions. Mr Anwar has repeatedly assured the public that the rights of existing property owners will be protected, and that units in redeveloped estates will be set aside for original residents. On 19 March 2025, he addressed opposition claims directly, stating, “Claims that the URA will displace Malays and bumiputera from urban areas or favour developers are false.” He has also proposed that compensation for affected residents be based on the “future value” of redeveloped units, a shift from the current practice of using present-day valuations, to help defray costs for returning residents.

Yet, opposition voices, particularly from Parti Islam SeMalaysia (PAS), have framed the URA as a policy that could marginalise lower-income communities, especially from Malay and Indian backgrounds. PAS deputy president Tuan Ibrahim Tuan Man warned on 19 February 2025, “When the Bill is approved, an area will be redeveloped and those who had previously bought a house for a price of RM100,000 wouldn’t be able to afford to buy back the house at a cost of more than RM500,000. This is an underhanded method to move out of the cities those who can’t afford, especially Malays and Indians.”

Support and Scepticism for Redevelopment

Despite the backlash, the URA Bill has garnered some support from property owners and industry experts who argue that redevelopment is overdue for many of Kuala Lumpur’s ageing structures. Lawyer Syed Khaled Alasrar, who owns two apartments in the city, acknowledged the need for modernisation while stressing fairness. “I think very old developments are an eyesore… and redevelopment is necessary to update structural, electrical and sewerage fixtures to ensure the buildings and area are safe” he said. However, he cautioned that poorer homeowners must not be sidelined in the process.

Datuk Ho Hon Sang, president of the Real Estate and Housing Developers’ Association, offered a pragmatic perspective, highlighting safety concerns in dilapidated buildings. “If 80 to 85 per cent of the residents and owners in an apartment block or development want to realise the value of their property, should they be allowed to do so or not?” he asked. “Of course, there is the 15 per cent who may not want it. But then again, when you live in a strata property, it is the consent of the majority that counts. If you are in the minority, tough luck. If the majority agrees, you will have to follow.”

Mr Ho pointed to the risks posed by outdated infrastructure, such as faulty wiring leading to fire hazards or deteriorating staircases causing injuries. He also noted that the current requirement for 100 per cent consent has stalled progress in prime areas, citing the failed redevelopment of Desa Kudalari, a luxury condominium near the Petronas Twin Towers, where 87 per cent of owners supported renewal in 2016, but unanimous agreement could not be reached.

Lessons from Past Projects

Amid the debate, the government has pointed to successful urban renewal projects as evidence of the potential benefits. The redevelopment of Razak Mansion, a former public housing estate in Kuala Lumpur, is often cited as a model. Completed in 2017 as 1Razak Mansion at a cost of RM150 million, the project provided original flat owners with new 800 sq ft homes at no cost, while long-term tenants could purchase units for RM42,000, according to local reports. Such outcomes, the government argues, demonstrate that renewal can be inclusive if handled with care and consultation.

However, critics remain unconvinced that such successes can be replicated across the 139 properties listed for potential redevelopment under the Kuala Lumpur Structure Plan 2040, which includes 91 residential strata buildings like Cantik Apartments. The scale of the initiative, combined with the diverse socioeconomic profiles of affected residents, raises questions about whether the government can balance development goals with social equity.

A Broader National Challenge

The controversy surrounding Cantik Apartments reflects a broader tension in Malaysia’s urban policy: how to modernise rapidly growing cities like Kuala Lumpur without exacerbating inequality. Urban renewal, while often necessary to address safety and infrastructure concerns, risks deepening social divides if affordability and displacement are not adequately addressed. The proposed URA, with its lowered consent thresholds, may streamline redevelopment, but it also amplifies fears among minority stakeholders who feel their voices could be overridden.

Opposition claims that the policy disproportionately affects Malay and Indian communities add a political dimension to the issue, particularly in a country where ethnic and economic identities are closely intertwined. If confirmed, such disparities could fuel further discontent, especially if compensation mechanisms or reserved units fail to meet residents’ needs. For now, the government’s assurances of consultation and future-value compensation remain untested promises, subject to scrutiny as the Bill moves through Parliament.

Looking Ahead

Back at Cantik Apartments, Mr Cheema remains cautiously optimistic that he and his neighbours can resist the redevelopment. “There are 87 units in Cantik Apartments. At least 25 to 30 owners do not want redevelopment. This is close to 40 per cent, more than what the new law requires for us to refuse redevelopment” he said. Whether their collective stance will hold under the new legal framework remains to be seen.

As Kuala Lumpur braces for transformation, the fate of places like Cantik Apartments will serve as a litmus test for the Urban Renewal Act. Will it deliver safer, modern living spaces for all, or will it redraw the city’s social map, pushing its most vulnerable residents to the margins? With the Bill’s tabling just months away, these questions loom large over Malaysia’s capital.