The first strata subdivision termination through parcel acquisition: Malaysia's approach to urban redevelopment
List of Authors
  • Ilmiah Bakri , Salfarina Samsudin

Keyword
  • Strata Subdivision Termination, Parcel Acquisition, Urban Redevelopment, Strata Ownership

Abstract
  • Terminating a multi-owned strata scheme in Malaysia presents significant challenges, primarily due to disagreements and differing interests among property owners. Despite multiple attempts, redevelopment projects in Kuala Lumpur and Penang have been halted due to these obstacles. This research examines the case of PKNS Flats in Kampung Sungai Baru, Kuala Lumpur, where a unique approach was employed to facilitate strata termination. Through parcel acquisition under Section 3(1)(c) of the Land Acquisition Act 1960, several parcels were acquired to ease the termination process, marking a pioneering approach in Peninsular Malaysia. The research investigates the motives behind this approach, the challenges encountered during the process, and potential improvements for future strata terminations. Through semi-structured interviews with key stakeholders involved in the strata termination process, the driving forces behind the parcel acquisition approach were found to be the difficulties of obtaining unanimous consent for strata termination and the urgent need to create more space in Kuala Lumpur to accommodate the growing population amid limited land availability. Several key challenges were identified, including unresolved inheritance issues, outstanding mortgages, difficulty in tracing original owners, conflicting interests among stakeholders, and concerns about inadequate compensation. Based on these findings, the article recommends a smoother termination process by emphasizing early streamlining of the ownership data and enhancing the project viability monitoring and enforcement. This critical examination aims to inform future policy and improve Malaysia's approach to strata termination, ultimately facilitating effective urban redevelopment.

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