Is the Urban Renewal Act the Antithesis of the Dawn Raid?

The date 7 September 1981 is etched in Malaysia’s economic history as a moment of brilliance, courage, and patriotic awakening. On that morning in London, Malaysia stunned the world with the “Dawn Raid”, a swift and strategic move by Permodalan Nasional Berhad (PNB) to regain control of Guthrie Corporation, a British-owned plantation giant. Within just 10 minutes of trading, Malaysia secured a majority stake, reclaiming nearly 200,000 acres of agricultural land and restoring a piece of the nation’s dignity.

This was not merely a financial coup. It was an act of reclaiming sovereignty, carried out with precision, legality, and vision. The operation involved some of Malaysia’s most capable minds: Tun Ismail Mohamed Ali, Tan Sri Khalid Ibrahim, Tengku Razaleigh Hamzah, Raja Mohar, and of course, Dr. Mahathir Mohamad, then Prime Minister. The Dawn Raid has since stood as a symbol of economic nationalism, an example of how strategy and purpose can align to uplift a nation.

Today, however, we find ourselves facing another significant moment: the proposed Urban Renewal Act (URA). Unlike the Dawn Raid, the URA has not inspired confidence nor rallied patriotic pride. Instead, it has sparked fear, controversy, and distrust.

The Promise of the URA

The URA was first announced during the 2024 Budget speech by Prime Minister Anwar Ibrahim, and a draft bill was released for consultation in early 2024. The ambition is undeniable:

534 potential redevelopment sites have been identified, with 139 in Kuala Lumpur alone. The gross development value (GDV) of these projects could reach RM355.3 billion. The objectives are framed in noble terms, modernising cities, addressing urban decay, improving public facilities, boosting housing supply, and ultimately creating more livable urban spaces.

On paper, it sounds like a bold step towards rejuvenating Malaysia’s cities for future generations.

The Concerns and Contradictions

Yet beneath this vision lies a series of troubling questions:

Skewed towards developers – Incentives, plot ratio increases, and extensions of time are offered, but with no real penalties for non-performance. Meanwhile, the “qualified few” developers gain privileged access to massive projects.

Displacement and gentrification – Underprivileged communities risk being uprooted, unable to afford life in the redeveloped housing. Even landed properties, such as in Kampung Sungai Baru, are not spared.

Erosion of property rights – The Bill departs from Section 57 of the Strata Titles Act 1985, lowering the consent threshold and potentially enabling forced acquisitions. In the Dawn Raid, Malaysia reclaimed land through legal, consensual means; in the URA, ordinary Malaysians fear their constitutional right to property may be trampled.

Lack of transparency and accountability – Promises of “one-for-one” replacements or protection of urban Malay rights remain vague or absent in the Bill. Stakeholder engagements (over 100 sessions) seem to have been ignored.

Concentration of power – Too much authority is being vested in the Ministry of Housing and Local Government. The unilateral move by the minister to raise the consent threshold to 80% without cabinet approval highlights the risk of unchecked power.

Developer credibility – The property sector is not free of manipulation. As highlighted in a recent webinar, misleading sales tactics, false “sold-out” claims, artificial booking practices, and collusion with marketing agencies, are already common. What happens when billions more are at stake?

Learning from Others

Singapore and Hong Kong are often showcased as models of successful urban redevelopment. But their systems rely on strong, independent institutions, such as Singapore’s Urban Redevelopment Authority, which operates as a statutory body with perpetual succession and accountability to independent tribunals. Malaysia’s proposed URA, however, places immense discretion in ministerial hands with only a mediation committee for dispute resolution.

This is not reform, it is centralisation.

A Tale of Two Raids

The contrast between the Dawn Raid and the proposed Urban Renewal Act is stark:

Dawn Raid: Malaysia reclaimed land and dignity, operating within the rules of the global market. It united Malaysians, inspiring pride.

I Property owners risk losing land and dignity, potentially forced into redevelopment schemes that serve developers more than communities.

In 1981, we reclaimed 200,000 acres of land from foreign control. Today, under the URA, ordinary Malaysians fear being “raided” of their own homes, forced to share with wealthier classes.

This raises a profound question:

Is development and modernisation now rated above constitutional rights?

Need of Reconsideration

The Madani government must revisit this Bill with seriousness and humility. Several actions are critical:

• Show the true financial impact on federal and state governments. Mega-projects cannot be justified by benefits alone, costs and risks must be transparently presented.
• Assess social impact comprehensively to ensure redevelopment enhances, not destroys, the livability of cities.
• Strengthen accountability mechanisms to guarantee fair compensation, enforce developer obligations, and protect vulnerable communities.
• Revisit KPIs for ministries, why draft sweeping new laws when basic responsibilities like maintaining, repairing, and upgrading existing housing remain neglected?

The Quran reminds us:

“O you who have believed, do not consume one another’s wealth unjustly but only in lawful business by mutual consent.” (Quran 4:29)

Development must be rooted in justice, transparency, and mutual consent—not coercion or backroom deals.

Conclusion

The Dawn Raid was a moment of national triumph that restored dignity without compromising justice. The Urban Renewal Act, as it currently stands, risks becoming its antithesis, an act that strips citizens of their rights in the name of progress.

The choice before us is clear: do we want an urban renewal that empowers communities and respects ownership, or one that erodes trust and deepens inequality?

What say you?

Saleh Mohammed