URA Act and Urban Poor: How Urban Development Can Benefit Low Income Groups?

URA Act and Urban Poor: How Urban Development Can Benefit Low Income Groups?

Urban development is often associated with modernisation, economic growth, and largescale investments in infrastructure. However, the key question remains—how much does this development truly benefit the urban poor? The Urban Redevelopment Authority (URA) Act can be a powerful tool in improving the welfare of lowincome communities if implemented with a more inclusive approach.

Challenges Faced by the Urban Poor in Urban Development

The urban poor often face numerous challenges due to uncontrolled urban development, including:

Skyrocketing housing prices, making homeownership increasingly unattainable.

Rising cost of living as a result of urban modernisation.

Gentrification, where original residents are forced out as luxury developments replace their neighbourhoods.

Unequal employment opportunities, where available jobs favour skilled workers, leaving the urban poor with limited job stability.

Dominance of capitalist entities in urban development, where large corporations and real estate investors reap the primary benefits from luxury projects, while lowincome residents are marginalised.

How Can the URA Act Benefit the Urban Poor?

To ensure urban development does not solely favour capitalist entities and large real estate developers, the URA Act must be implemented with a more peoplecentred strategy. The following measures can be taken:

Strict Affordable Housing Policies

Every development project should have a mandatory quota for affordable housing.

The government should control real estate speculation to prevent uncontrolled price hikes.

Provide rental assistance schemes and housing subsidies to help the urban poor remain in strategic locations.

Regulate property ownership by large developers, which often prioritise luxury projects over the needs of lowincome communities.

Urban Development Without Displacing Original Communities

Urban modernisation should take into account the interests of existing residents, ensuring they are not displaced.

Essential facilities such as public markets, health centres, and schools must be maintained or improved.

Grant land or housing ownership rights to original residents before redevelopment begins.

Limit the influence of capitalist entities in land acquisition to prevent forced sales of properties at low prices to developers.

Economic and Employment Opportunities for Citizens

Developers should be required to hire local workers in development projects.

Create special economic zones to support small businesses and street vendors in urban areas.

Provide skill training programmes to help lowincome individuals secure stable employment.

Restrict monopolies by capitalist companies in urban economic sectors, ensuring small and medium enterprises have room to grow.

Inclusive Public Infrastructure and Facilities

Affordable and efficient public transport to reduce commuting costs for urban poor residents.

Development of green spaces and recreational areas accessible to all social groups.

Basic utilities such as clean water, electricity, and internet access must be prioritised in urban planning.

Limit infrastructure projects that only benefit capitalist owners, focusing instead on public amenities for ordinary citizens.

Fair Government Policies and Regulation

The government must control real estate speculation by large corporations and foreign investors.

Community consultations should be conducted before any urban development projects commence.

Social assistance and subsidies for lowincome citizens should be integrated with urban development policies to ensure equal benefits.

Increase taxation on large developers and real estate investors focused only on luxury projects, and use tax revenue to support urban poor communities.

How Can the Government Control Capitalist Entities?

To prevent urban development from being entirely dominated by capitalist entities that prioritise profit over social welfare, the government can take the following actions:

Strict Control Over Land Speculation – The government should impose stringent conditions on developers and investors to prevent excessive land acquisitions that lead to soaring property prices.

Conditional Subsidies for Development Projects – Only developers that commit to building affordable housing and contributing to public infrastructure should receive government incentives or subsidies.

Urban Capitalist Taxation – Introduce a special tax on large corporations that buy urban properties but do not develop them for community benefit.

Strict Monitoring of Mega Projects – All largescale development projects must undergo social audits to ensure they truly benefit urban residents rather than just increasing developer profits.

Involvement of GovernmentLinked Companies (GLCs) – The government should leverage GLCs in the real estate sector to develop projects that are more peoplefriendly rather than purely profitdriven.

‘People Over Profit’ Policy – Prioritise public welfare in urban planning, ensuring that development does not merely enrich big corporations but also enhances the quality of life for urban poor communities.

Conclusion

The URA Act can be an effective tool in improving the living conditions of the urban poor if implemented with fair and inclusive policies. By controlling real estate speculation, ensuring the availability of affordable housing, creating job opportunities, and developing infrastructure that supports social welfare, urban development can become more balanced and beneficial for all segments of society. Without proper regulation, urban development will continue to enrich capitalist entities while marginalising those who genuinely need support. Through tighter government control over capitalist influence, a balance between economic growth and social wellbeing can be achieved.