Expected rise in costs for property owners under Urban Renewal Act
Under the proposed amendments, development projects that were previously funded by the government and private sector will now be entirely taken over by developers.
SHAH ALAM - The cost of living, especially for property owners, is expected to rise sharply if the Urban Renewal Act (URA) is implemented.
Muar MP Syed Saddiq Syed Abdul Rahman said this was because under the proposed amendments, development projects that were previously funded by the government and private sector will now be entirely taken over by developers.
This situation, he said was expected to cause price increases, including in maintenance fees, assessment taxes and other additional costs.
“Imagine if the maintenance cost for a flat used to be RM50 per month, but after this, it could rise up to RM500 per month.
"Think carefully. Can a household earning less than RM3,000 afford to pay RM500 a month (after the increase) instead of RM50?
"For example, if there used to be a mamak shop under the flat selling roti canai for RM1.20, after luxury condominiums priced at RM500,000 are built, the mamak shop may turn into a bistro and the price of roti canai may rise to RM20," he said.
He said this during the Wacana Sinar programme entitled "Benarkah Akta PSB hendak pinggirkan rakyat" aired live on Sinar Harian digital platforms, last night.
Syed Saddiq and Kota Damansara assemblyman Muhammad Izuan Ahmad Kasim were the panellists in the programme hosted by Ahmad Fahmi Mohd Samsudin.
Syed Saddiq said the government should consider raising the approval threshold percentage among property owners before land or premises development projects could commence, increasing it to at least 95 per cent.
He argued that the current thresholds of 75 per cent or 51 per cent were too low and unreasonable to implement.
"The Prime Minister often cites examples from foreign countries like Hong Kong and Singapore, but I have highlighted in my speech the significant differences between Malaysia and those countries. Do not consider them to be the same.
"If the government says a 100 per cent threshold is not possible, at least review it to 95 per cent. A 75 per cent threshold is too low," he said.
He added that any compensation to property owners should be institutionalied or enacted into law to prevent developers from merely making empty promises.
"With hundreds of development projects, it is impossible for the Prime Minister and ministers to monitor each case, especially since these are not government projects.
"That is why the compensation provided must be substantial, not just a simple replacement with a new apartment.
"Maintenance costs, if possible, should be set low or provided free for the first two to three years for the original residents," he added.
Download Sinar Daily application.Click Here!
