Nga explains factors that determines the 30-year threshold in Urban Renewal Bill

Housing and Local Government Minister Nga Kor Ming defended the 30-year threshold for buildings in the Urban Renewal Bill based on four obsolescence.

“The 30-year threshold for buildings are re-looking at the threshold age. It must be explained that the 30 years building age were fixed based on certain factors that was not limited to physical age only.

“The physical obsolescence depends on the type and quality of the structure whether it is well maintained including soil conditions that are exposed to environment and weather.

“The functional obsolescence that takes place when space, size and technology are no longer relevant in the current times.

“The economic obsolescence that happens when maintenance and operation costs exceeds market value or benefit after 30 to 40 years, depending on the location and real estate market.

“The regulatory obsolescence when a building is deemed outdated as it does not meet safety standards, fire or energy efficiency.”

He added that a reasonable time frame to implement urban renewal is as follows:

25 to 40 years – in need of major retrofitting.

40 to 60 years most buildings need overall renewal.

70 years are considered dilapidated without intensive maintenance work unless it is a heritage building.

He said this in a written reply to Datuk Seri Wee Ka Siong (BN-Ayer Hitam).