Residents of Kampung Sungai Baru in the heart of Kuala Lumpur march to the Malaysian Human Rights Commission (Suhakam) office to submit a memorandum in protest of their July 16 eviction.

One critic says the proposed law appears to be another layer of red tape which would add further confusion to the redevelopment process.

Developers are said to be salivating at the prospect of commercialising the Malay enclave.

Country Garden last month said it had not paid coupons on the bonds due on Aug 6 totalling US$22.5 million, exacerbating market fear that the developer was slipping into a worsening liquidity squeeze.

The financial woes of Country Garden have highlighted the fragile state of the country's real estate industry, which accounts for roughly a quarter of the economy and whose debt situation has been dire since 2021.

Once considered one of the more financially sound developers, Country Garden is now a bellwether of how the cycle has turned for developers.

While it is early days, the market so far remains unconvinced that the sector has turned a corner with real estate agents reporting subdued transactions even in China's biggest cities.

The tightening was the latest in a series of attempts to tame runaway prices that have stirred discontent among residents of one of the world's most expensive cities.

This includes a doubling of stamp duties for foreigners to an eye-watering 60%.

Experts are split over the recent invitation to Singapore's Housing and Development Board to review Malaysia's housing policy.

Authorities have already started building basic infrastructure in the area, with an aim to start relocating some government administration and civil servants in 2024.

Russians were reportedly the biggest international buyers of Dubai real estate last year.