RAM Ratings: Corporate Bond Financing to Moderate?

 

Corporate bond financing is expected to moderate in 2026 from the record-high issuance seen, RAM Ratings said. The ratings agency projects gross issuance of between RM130 billion and RM140 billion this year, down from a record RM174.4 billion raised by 205 issuers in 2025. This projection is still above the historical average of about RM122 billion recorded between 2017 and 2024, RAM Ratings noted. In 2024, gross issuance stood at RM124.2 billion from 171 issuers.

 

 

Issuances in 2026 will also be supported by financial institutions’ capital-raising plans. The rating agency expects foreign investor demand for Malaysian bonds to remain healthy this year, underpinned by resilient domestic economic conditions and prospects for global monetary easing, which should enhance the yield differential in favour of ringgit-denominated bonds. 

2025 saw a sharp jump in foreign net inflows to RM25.6 billion, compared with RM4.8 billion in 2024 — the largest since 2021 — concentrated mainly in April (RM10.2 billion) and May (RM13.4 billion) amid expectations of US Federal Reserve (Fed) rate cuts. 

Given increasing signs of economic weakness in the US, RAM expects the Fed to cumulatively reduce rates by at least 50 bps by year end. The overnight policy rate (OPR) will stay unchanged at 2.75% for 2026, Fed cuts will help further improve the attractiveness of Malaysian bonds. 

Meanwhile, gross issuance of Malaysian Government Securities (MGS) and Government Investment Issues (GII) is projected to rise to between RM175 billion and RM185 billion this year, from RM168.5 billion in 2025, driven by increased refinancing needs for maturing debt. However, net supply in 2026 is expected to be lower due to a smaller government deficit financing requirement. The scenario in one of caution by issuers. It remains for banks to do due diligence adequately such that court action like in MEX II Sukuk will not surface. If there are too many court or legal tussles, bond issuance will be impacted.

 

Reference:

RAM Ratings: Corporate bond financing to moderate after record high issuance in 2025, Syafiqah Salim / theedgemalaysia.com, 20 Jan 2026

Employees Stay When…

 

People don’t leave companies — they leave fear-based environments. In many organizations, talented and capable employees are not lost because they underperform, but because their competence is perceived as a threat. When insecurity replaces leadership, growth becomes dangerous, and excellence becomes something to suppress rather than nurture. In such environments, some superiors feel compelled to protect their positions instead of developing stronger teams — and the easiest way to do that is to push capable people out. This is why so many highly qualified, driven professionals struggle to stay, or even to be hired. Not because they lack value, but because their potential challenges fragile hierarchies. When fear governs decision-making, top management may unintentionally avoid strong talent — choosing comfort over capability, control over progress. 

But organizations that lead with confidence, trust, and vision understand a deeper truth: Great leaders are not threatened by talent — they are amplified by it. Employees stay when they are respected, trusted, and allowed to grow without fear. They stay when excellence is celebrated, not punished. They stay when leadership is secure enough to say, “If you grow, we all grow.” 

Retention is not about control. It is about courage — the courage to hire people better than you, smarter than you, and different from you. Because when leadership is rooted in confidence rather than fear, people don’t just stay… they believe, they commit, and they build something greater — together.

 

Reference:

Post by Audra Lim, Linkedin

 

HSR: What’s Next?

 

When KTM Bhd finally commenced its Kuala Lumpur to Johor Baru ETS (electric train service) on 12 December 2025, after around seven years of construction – one thing was clear:  journey time now is approximately 4.5 hours. 

It is possible for a train running non-stop from KL Sentral to reach JB Sentral, a rail distance of 330km, in three hours, given the design speed of the alignment, which is 160kph. 

 

In practice, however, KTMB is running the ETS sets at 140kph to maintain a decent safety margin on the metre-gauge network, as well as to keep the lid on maintenance costs. 

A significant limitation is the relatively dated metre-gauge alignment. The new southern ETS makes 15 stops between Kuala Lumpur and Johor Baru – including at Pulau Sebang (Tampin), Batang Melaka, Gemas, Segamat, Labis, Bekok, Paloh, Kluang, Rengam, Layang-Layang, Kulai, and Kempas Baru – before arriving at JB Sentral. This means a journey time of at least four hours and 20 minutes. This is a disappointment for those who are time-strapped, especially when the ETS is averaging only 76kph. 

Do we still need the cross-border HSR? Some people have argued that the completion of the Gemas-Johor Baru double track, coupled with the impending completion of the Johor Baru-Singapore Rapid Transit System (RTS) Link by the end of 2026, will remove the need for the proposed Kuala Lumpur-Singapore High Speed Rail (HSR). 

In its original form, the KL-SG HSR was to complete the non-stop journey from Bandar Malaysia in Kuala Lumpur to Jurong East in Singapore, after passing Iskandar Puteri in Johor, in no more than 90 minutes. This 90-minute cross-border journey time is guaranteed as all immigration or customs formalities will be completed before the passenger boards the train, whether in Kuala Lumpur or Singapore. While not explicitly stated by the project proponent, the alignment and infrastructure that allows the 90-minute non-stop journey also allows those from Kuala Lumpur to reach Iskandar Puteri in a mere two hours, even after the train stops at Sepang-Putrajaya (near Bangi), Seremban, Ayer Keroh, Muar, and Batu Pahat. 

Experts also note that KTMB’s network often passes through old towns with limited space for sizeable new developments, while the proposed HSR stations will be located slightly away from mature areas to spread development more equitably, with the intent of attracting high-value or cutting-edge industries in ways old towns can’t accommodate. 

In its original proposal, the HSR was to pass through high-growth areas such as Seremban (Labu), Ayer Keroh, Muar, and Batu Pahat, along with Iskandar Puteri. The ETS cannot deliver the ‘time is money’ efficiency required to replace short-haul flights or integrate the two national economies the way the HSR would be able to. 

The key is cost. If HSR costs are borne largely by the Governments of Singapore and Malaysia, then the operating company running the express and transit (HSR) trains has a fair chance to be profitable. The right business model is the key to its viability. 

Reference:
What next for the high-speed rail to Singapore? Meng Yew Choong, The Star, 28 December 2025

Is Auto Market on Slow Lane?

 

Malaysia’s automotive market, after three years of unprecedented growth, is set to decelerate in 2026 as demand stabilises, policy support diminishes, and competition intensifies across both the electric and conventional vehicle segments. 

Industry data reveals a 4.6% month-on-month decline in November sales to 72,509 units, following October’s peak of 75,992 vehicles. Year-to-date deliveries totalled 727,836 units, 1.15% lower than the same period last year. For perspective, 2024 sales reached a record high of 816,747 units. 

Analysts anticipate a gradual return to a more sustainable demand environment, with a notable adjustment expected heading into 2026. 

A key factor shaping 2026 is the expiry of tax exemptions for fully imported (CBU) electric vehicles (EVs) at the end of 2025. CBU EVs are now subject to import and excise duties. Estimates suggest that prices for CBU EV models could rise by 20% to 40%. 

 

Xpeng plans to start EV assembly in Malaysia in 2026, while national brands Proton and Perodua are expanding CKD production as part of their broader localisation strategies. BYD is building a CKD facility in Tanjung Malim, with operations slated to begin in 2026, while Leapmotor, through its partnership with Stellantis, is planning CKD production at its Gurun facility. Chery and Great Wall Motor are expanding or preparing CKD plans as part of their wider Asean strategies. 

Beyond EV-specific policies, the broader automotive market will also be shaped by structural changes beginning in 2026. A revised open market value (OMV) excise duty framework for CKDs – originally slated for January 2026 but recently pushed to July 1, 2026 – could push vehicle prices higher by 10% to 30%, depending on model specifications and localisation levels, according to industry players. TIV is projected to moderate further in 2026 to around 750,000 units. 

The continuation of the RON95 petrol subsidy under initiatives such as Budi95 is expected to support demand for internal combustion engine (ICE) vehicles, particularly in the mass-market segment, dampening the incentive for some consumers to switch to EVs in the near term. 

Malaysia’s long-term target is for EVs and hybrids to account for 20% of new car sales by 2030, 50% by 2040 and 80% by 2050. Currently, BEVs (battery electric vehicles) make up about 5% of total industry volume. 

Usually, car sales is a barometer of economic growth. Caution in 2026 suggests consumers are likely to hold back consumption because of uncertainties in the local and global scenes. And that’s not good for GDP growth! 

Reference:

Auto market switching to slow lane, Kirennesh Nair, Star Biz7, The Star, 5 January 2026

Have Mercy on Whom?

 

Muhammad Azrul Haqim Azman, a 29-year-old father of two, was sentenced to jail recently. His crime? Stealing basic household items valued at RM113.70 from a supermarket on New Year’s Day. Azrul, now jobless and with no steady income, stole out of desperation. The items were not for resale, but for the daily needs of his young family, which includes a four-year-old and an infant just three months old. His plea for leniency fell on deaf ears. 

Could some civic-minded citizens help this man? Shouldn’t the people sign a petition seeking a pardon from the Terengganu Ruler? Meanwhile, the Yang di-Pertuan Besar of Negeri Sembilan expressed deep concern over the prevalence of corruption, while also voicing disappointment at those who continue to support individuals convicted of graft. He said he was shocked that some still rallied behind individuals found guilty of serious corruption offences, as if such acts were acceptable or forgivable.

 

Source: https://www.wikihow.life

But all these remarks or chidings are akin to water off a duck’s back as far as the “Party” is concerned. Its “pardon for Najib (Abdul Razak)” juggernaut, which rolled out after the Federal Court dismissed his appeal in the SRC case in 2022, shows no sign of abatement. In April 2023, its supreme council asked the Yang di-Pertuan Agong to consider granting former prime minister Najib a royal pardon. The party’s supreme council intend to seek an audience with the King to present a memorandum asking for Najib to be pardoned. Since then, at every given opportunity, their leaders have never missed the opportunity to talk about a pardon. 

Regulation 113 of the Prisons Regulations 2000 states:

 (1)   A prisoner may, if he wishes, petition the Yang di-Pertuan Agong or the Ruler or Yang diPertua Negeri, as the case may be, on the subject of his conviction or sentence, once as soon as practicable after his conviction and a second such petition shall be allowed when a prisoner has completed three years from the date of conviction, and thereafter such petitions shall be granted at two yearly intervals, unless there are any special circumstances which the Officer-in-Charge may consider should be brought to the notice of the Yang di-Pertuan Agong or the Ruler or the Yang di-Pertua Negeri, as the case may be.

 

(2) A prisoner may, if he wishes, petition the Yang di-Pertuan Agong or the Ruler or the Yang diPertua Negeri on any other subject at any time, provided that no petition shall be permitted if the reply to a previous petition on the same subject is still outstanding. 

The keyword in Rule 113 is “prisoner”. Period. Any petition other than that from Najib will never be considered. So, why this futility? 

Malaysia’s justice theatre plays on a father is jailed for RM113 worth of groceries, while a former prime minister convicted of siphoning billions is serenaded with chants of “Bossku.”

One man’s desperation is treated as a crime; another man’s corruption is dressed up as a cause for compassion. Perhaps the lesson is this: steal a little, and you are a criminal; steal a lot, and you are possibly awaiting a pardon. 

Poverty earns punishment, privilege earns petitions. The message is clear — steal bread, and you are a thief; steal billions, and you may become a celebrity. 

Reference:

Exclusive | RM113 vs RM45 billion: Who deserves mercy?

Citizen Nades, https://newswav.com, 19 Jan 2026

Malaysia’s SMEs Confront “Survival Zone”?

 

Samenta president Datuk William has warned that many Malaysian SMEs lack the financial and technical capacity to cope with overlapping compliance demands coming into force this year. This is prompting warnings that many businesses could struggle to survive without urgent government intervention. 

The Small and Medium Enterprises Association Malaysia (Samenta) said SMEs were entering a “survival zone” in 2026, as the cumulative cost of compliance reaches what it described as a breaking point. 

Source: https://www.wikiimpact.com

 

The Stamp Duty Self-Assessment System, the Multi-Tier Levy System for foreign workers, preparations for sector-specific carbon taxes, mandatory e-invoicing for SMEs with annual revenue above RM1 million, and new operational requirements tied to business licensing are some of the regulatory requirements. Additional obligations linked to environmental, social and governance (ESG) standards are also expected to intensify, particularly for firms connected to multinational or export-oriented supply chains. Many SMEs lack the financial capacity and in-house expertise to manage the overlapping timelines and technical demands imposed by these rules. 

SMEs typically operate on net margins of between 10 and 15 per cent, Samenta noted, but much of that is now being eroded by what it described as defensive spending on compliance rather than investment for growth. Samenta also highlighted that while SMEs are not directly required under Malaysia’s National Sustainability Reporting Framework to track carbon emissions, many are effectively compelled to do so because of reporting demands imposed by larger corporations and multinational clients. 

Calling for a change in regulatory approach, the association urged the government to move away from rigid, rule-based enforcement towards incentive-driven facilitation.  Among its proposals are a 24-month moratorium on new regulatory costs, funding for AI-powered ESG reporting tools, and industry-led training programmes to help SMEs develop in-house compliance capabilities. Without such measures, Samenta warned, compliance risks becoming not a pathway to competitiveness, but a barrier to business survival. 

Reference:

Samenta: Malaysia’s SMEs confront ‘survival zone’ under expanding compliance rules, Malay Mail, 5 January 2026

“Empty Seat Principle”

 

The “EMPTY SEAT PRINCIPLE” is how Jack Ma turned one embarrassing moment before Alibaba became one of the most valuable companies in the world. He lived through a moment most people would never recover from. 

In the early days of his English school in Hangzhou, Jack held a small seminar and invited 20 local business owners. 

He was excited.

He prepared notes.

He rehearsed every line.

He set out 20 chairs. 

When the seminar began… only one person showed up. Not twenty. Not ten. Not five. One. A single man sat in the front row surrounded by nineteen empty seats. Jack Ma felt his stomach drop. He considered cancelling. He considered apologizing. He considered quitting. But instead, he walked to the podium, bowed, and said: “If you showed up, I will give you everything I prepared as if the room was full.” He taught for 2 hours. 

He delivered every example. He shared every idea. He gave his absolute best… To an audience of one. Years later, when Alibaba had thousands of employees, Jack Ma referenced that day and said: “If you cannot serve one person well, you cannot serve a million.” That moment, that humiliation, became the seed of his entire philosophy: Small audiences’ matter. Small beginnings matter. Small rooms matter. One person matters. The empty seats never discouraged him. They disciplined him. Because Jack Ma understood something most entrepreneurs forget: Success is not built when the room is full. Success is built when you perform even when the room is empty. 

The “Empty Seat Principle” teaches this: Excellence is not a performance for the crowd. Excellence is a habit you practice long before the crowd arrives. Small numbers are not a problem. Small effort is. Show up fully, even when no one else does. Because the day you stop despising small beginnings is the day your reputation starts growing bigger than your audience.

 

Reference:

Post by Dr Ahmad Sabirin Arshad, https://www.linkedin.com/

MEX II Sukuk Holders Sue Banks!

 

CIMB Group Holdings Bhd’s investment banking arm, CIMB Investment Bank Bhd (CIMB IB), and 11 others have been hit with a RM1.38 billion suit from sukuk holders of the MEX II highway. The suit was filed by 14 holders of the sukuk murabahah issued by MEX II Sdn Bhd over losses they allegedly suffered from the purchase of the notes. CIMB said the plaintiffs filed amended writ of summons and statement of claim on Jan 2, 2026, which were served on CIMB IB. 

Besides CIMB IB, the other defendants are MEX II; Maju Lingkaran Development Sdn Bhd; Maju Holdings Sdn Bhd; Tan Sri Abu Sahid Mohamed, his wife and son; Datuk Yap Wee Leong; TMF Trustees Malaysia Bhd; Crowe Malaysia PLT; HSS Engineers Bhd 30%-owned associate HSS Integrated Sdn Bhd; and Straits Consulting Engineers Sdn Bhd.

 

Source: https://en.wikipedia.org

 

The sukuk holders, it said, are seeking a court declaration that CIMB IB is jointly and severally liable with the other defendants for all losses suffered by the plaintiffs arising from the purchase of the sukuk murabahah. Consequently, the sukuk holders seek judgement against each of the defendants for the “dissolution amount” of RM1.38 billion as at Jan 3, 2022, or an amount the court deems fit. Alternatively, in CIMB IB's case, “restoring and/or making good” to the plaintiffs, CIMB IB’s proportionate share of such losses. CIMB said the suit is not expected to have a material operational or financial impact on the group. The lender said it is confident that CIMB IB has at all material times performed its duties and obligations in its various capacities in accordance with standards prescribed by law and contractually. 

The 14 sukuk holders who initiated the suit are Credit Guarantee Corporation Malaysia Bhd; Amanah Raya Bhd; Syarikat Takaful Malaysia Keluarga Bhd; Syarikat Takaful Malaysia Am Bhd; Zurich Life Insurance Malaysia Bhd; Zurich Takaful Malaysia Bhd; RHB Asset Management Sdn Bhd; RHB Islamic International Asset Management Bhd; Maybank Trustees Bhd; Amanahraya Trustees Bhd; HSBC (Malaysia) Trustee Bhd; AHAM Asset Management Bhd; AIIMAN Asset Management Sdn Bhd; and OPUS Asset Management Sdn Bhd. The 14 hold about RM563.2 million or 43.33% of the RM1.3 billion sukuk murabahah. The MEX II sukuk was issued in 2016 for the construction of the 16.8km three-lane dual-carriageway connecting the Putrajaya Interchange of the MEX I Highway and KLIA/KLIA 2. 

MEX II was initially slated for completion in November 2018 but was deferred to October 2019. However, the highway remains incomplete as of now. MEX II’s sukuk faced issues in paying its principal and profit in 2021, which saw it defer payments. The debt notes were suspended by end-2021 by CIMB IB, after payments due were not received despite extensions granted by sukuk holders. Following the default and subsequent failed restructuring attempts, MEX II was placed under receivership in 2022. Meanwhile, the highway project remains stalled. 

This is a complicated case with fraud, alcohol, women and wine. It will take some effort on the sukuk holders to prove CIMB IB had failed to conduct detailed due diligence, but it addresses the issue that banks have to be more vigilant on management and shareholder backgrounds. 

Reference:

CIMB Investment Bank, 11 others hit with RM1.38b suit from MEX II sukuk holders, Izzul Ikram, theedgemalaysia.com, 6 January 2026

Could Kuala Lumpur Office Glut Worsen?

 

The office market in the capital city could face further pressure with the incoming supply of nearly six million square feet of new space, a property report warned. The under-construction space comprises eight buildings, the majority of which are in the city centre, according to Rahim & Co’s Property Market Review 2025/2026. Nationwide office occupancy rates fell to 77.8% at June-end before slightly improving to 78% by September, the report said. 

The real estate consulting firm reiterated the need for repurposing or asset enhancement strategies to reduce vacancy. Kuala Lumpur continues to hold the largest concentration of purpose-built office space in the country, with total supply reaching 109.86 million sq ft in the first half of 2025. Occupancy stood at 72.2%, leaving around 30.51 million sq ft of vacant space, largely in older buildings.

 

 The rise of new office hubs, including the Tun Razak Exchange, Merdeka 118, IOI City Towers and Pavilion Damansara Heights, has left ageing and underperforming buildings struggling to compete. 

Many offices built in the early 2000s no longer meet current standards for design, environmental performance, or technological readiness, contributing to a surplus of obsolete space. Demand for office space in Kuala Lumpur is concentrated in premium, ESG-certified, transit-accessible locations, supported in part by international interest driven by agencies such as InvestKL and Mida, Rahim & Co said.

In neighbouring Selangor, the country’s economic powerhouse, the office sector had a total supply of 50.58 million sq ft as of the first half of 2025 with an average occupancy rate of 72.5%, leaving about 13.9 million sq ft of vacant space. Petaling Jaya accounted for the largest concentration, with 20.2 million sq ft across 90 office buildings, representing 40% of the state’s stock. One new office building is currently under construction, which will add more than 350,000 sq ft of space once it is completed. 

One cannot blame banks for this situation; it is the government that approves these developments. It must be more rigorous on approvals and projections made. Private developers will always suggest it is feasible and justify construction of “unwanted” green buildings when old ones remain largely vacant. 

How do we solve this problem? Maybe the new Minister (of Federal Territories) could enforce structure plans and review the approval process? 

Reference:

Kuala Lumpur office glut could worsen, property report warns, Choy Nyen Yiau & Eng Wen Tzer, theedgemalaysia.com, 9 January 2026

Why Leave?

 

National Registration Department director-general Badril Hisham Alias released the latest statistics on the number of Malaysians who have relinquished their citizenship in the past five years. It stands at 61,116. It should concern Malaysians. Of this, 93.78 percent of those who renounced Malaysian citizenship choose one neighbouring country, the issue is not migration. It is failure.

Citizenship, in theory, is supposed to represent belonging, opportunity, and protection. However, for a growing number of Malaysians - especially those in their prime working years - it has become an economic handicap. Lower wages, slower career mobility, rising cost of living, and weak social safety nets turn being a Malaysian into a financial sacrifice. The numbers tell a brutal story. The largest group relinquishing citizenship is aged 21 to 40, representing young professionals, skilled workers, and parents raising families. These are precisely the people Malaysia claims it wants to retain. Instead, we are exporting them.

Source: https://en.wikipedia.org

Women are leading this trend, with over 35,000 of them renouncing their citizenship. And it is not simply due to marriage. It reflects how Malaysia’s policies repeatedly place women in impossible positions - between family unity and legal status, between children’s security and national allegiance. When the system forces families to choose, families will choose survival over symbolism.

The Singapore factor exposes an uncomfortable truth. Malaysia competes directly with Singapore and is losing. It is not because Singapore “steals” our people, but because it offers what Malaysia increasingly does not - predictable wages, dignified work, efficient governance, and a future that feels planned rather than improvised.

If this trend continues, the question will no longer be about how many Malaysians are leaving but who’s left to build the country.

Radical thinking and radical reforms are required. But Madani doesn’t want to rock the boat. No point having Talent Corp. Its performance is below satisfactory, not because it is not competent but national policies don’t work well to retain the good ones. This is an emotive issue, and only rational people can work-out potential solutions.

Reference:

Letter | When citizenship becomes a liability, not privilege, KT Maran, Malaysiakini, 8 January 2026

Malaysia’s Non-Citizen Population!

 

Malaysia's non-citizen population is projected to reach 3.38 million in 2025, with an annual growth rate declining to -0.5 percent compared to 2024, according to the Statistics Department (DOSM). Based on the International Migration Statistics, Malaysia 2025 report released by DOSM, the composition of the non-citizen population has decreased from 10.0 percent in 2024 to 9.9 percent in 2025. 

This is the first time DOSM has released the International Migration Statistics, Malaysia 2025 publication, in line with the United Nations’ Recommendations on Statistics of International Migration and Temporary Mobility 2025, which encourages member countries to provide integrated and continuous statistics on both stocks and flows of international migration.

 

Source: https://commons.wikimedia.org

According to DOSM, these statistics are crucial for policy formulation and the planning of international migration-related programmes, as well as serving as a reference for researchers and academics.

International migration plays a significant role in shaping the country's population structure, with direct implications for the labour market, social services provision, and socio-economic development planning. 

There are several points that deserve further scrutiny:

-Where are they located?

-Are they with proper permits?

-What’s the number that are seen as illegal or have overstayed?

-From which countries are they from?

-Are they with families?

-Are they using government facilities – hospitals, schools etc?

-How many are employed gainfully? 

To develop a proper plan for future automation; legalising the illegals; planning on social services and other related areas, more information is required. Then there are implications that impinge on the local population – how do they feel; and their views on resources utilised; employment impact and others. The present effort is good but more needs to be done. 

Reference:

Malaysia's non-citizen population estimated at 3.38m in 2025 – DOSM, Bernama,
24 December 2025

Effective Delegation: Phrases to Get It Right?

 

Your words are sabotaging your delegation. Vague language only creates more work for yourself. A lot of business owners think they're delegating when they're just handing out tasks and hoping for the best. Actual delegation isn't dumping work on someone else's path. It's giving them the outcome you need. The context to understand why it matters, and then getting out of the way. Use these 10 phrases when delegating:

Delegation only works when you're clear about the outcome, trust the person to get there, and then get out of the way. Do you struggle more with delegating or trusting to get things done right? 

Reference:

Effective Delegation: 10 Phrases to Get It Right, Andrew Faber, Linkedin

Beware of URA!

 

The proposed Urban Renewal Act (URA) Bill 2025, recently tabled in Parliament, threatens to reshape Malaysia’s property landscape. Initial public discourse suggested the Bill primarily targeted ageing strata developments but on closer examination it reveals a much broader scope. The Bill’s reach extends to landed residential homes, business premises and commercial properties – irrespective of whether they hold freehold or leasehold status. (This post is based on the article Landed Property Owners Beware by Brig Gen Datuk Goh Seng Toh in Star Biz7, 4 January 2026) 

Property experts and the National House Buyers Association (HBA) warn that the Bill’s broad powers, including majority-consent mechanisms and compulsory acquisition, could endanger individual landowners’ rights. Many homeowners assume the URA Bill only affects dilapidated high-rise buildings. This is a significant misconception.

 

Source: https://en.wikipedia.org 

The Bill’s definition of an Urban Renewal Area is area-based, not property-type-based. This means any designated zone can include landed terrace houses, semi-detached homes, bungalows and traditional shophouses. Across Peninsular Malaysia, thousands of mature neighbourhoods in Petaling Jaya, Ampang, Georgetown and Johor Bahru now fall into the over 30 years old category. Under the proposed legislation: 

-Redevelopment can proceed with as little as 75% to 80% consent from owners. 

-The remaining minority can be compelled to vacate through the Land Acquisition Act 1960. 

-Compensation may take the form of cash or a replacement property – meaning a lifelong landed homeowner could be forced to accept a high-rise condominium unit in return. 

The URA Bill introduces a majoritarian approach that is unprecedented in Malaysian land law. Historically, the National Land Code has protected the indefeasibility of title – the principle that once your name is on the land title, your ownership is secure. However, Section 19(b) of the Bill introduces a sliding scale for consent, that is, an 80% consent for buildings 30 years old or less and a 75% consent for buildings older than 30 years. This mechanism violates Articles 8 and 13 of the Federal Constitution, which guarantee the right to own property and protect citizens from being deprived of their land without adequate compensation. By allowing a majority of 75% to vote away the rights of the remaining 25%, the Bill facilitates the commercial interests of developers at the expense of private homeowners. 

The definition of an interested person in the Bill is also alarmingly wide, including developers and trustees. This gives profit-driven entities the power to dictate how private property should be handled, potentially manipulating renewal zones to hit consent thresholds more easily. 

One of the most contentious points of the Bill is the 30-year trigger point. The Ministry has previously acknowledged that the average lifespan of a reinforced concrete structure is between 70 and 80 years. Even the standard housing loan in Malaysia lasts 35 years. Why, then, does the URA Bill set the benchmark at 30 years? 

Civic groups, Residents’ Associations and the HBA are urging lawmakers to amend the URA Bill before it passes. They are proposing five critical protections: 

-Unanimous consent (100%): Any redevelopment involving the stripping of private titles must require the agreement of all owners. At least 90%, just like a takeover of a company under SC guidelines. 

-Explicit exclusion: Single-title landed homes should be explicitly excluded from forced urban renewal zones. 

-Like-for-like replacement: Where owners voluntarily participate, they must be guaranteed a similar property type (landed for landed). 

-Independent future-value valuation: Compensation must be based on the future potential value of the redeveloped site, not current market rates. 

-The right to remain: Owners should have the right to opt out of relocation if they choose.

HBA is also calling for mandatory state-level public hearings before any area is designated for renewal, ensuring developers cannot misuse the legislation behind closed doors. 

Landed-home owners in Malaysia can no longer assume they are immune to redevelopment pressures just because they own the ground their house sits on. If the URA Bill passes in its current form, the very nature of landed living will be altered forever. This is not merely about urban renewal. It represents a forced surrender of their asset. 

Homeowners must act with urgency – speak to local representatives, monitor parliamentary updates and push for stronger legal protections. 

Reference:

Landed property owners beware, Brig Gen Datuk Goh Seng Toh, Star Biz7, The Star,  4 January 2026