Datuk Raja Nong Chik warned that the government may force to exercise the compulsory land acquisition if the residents refused to do so.
Speaking to reporters, the minister said the urban renewal scheme has stalled for a year after some of the residents rejected the plan.
However the government will not hesitate to force them to accept the redevelopment plan in favour of the 90 percent of the residents who have agreed to move.
He added the residents will lose out in terms of compensation amount if the government decided to exercise the compulsory land acquisition.
The minister stressed that the residents will be given temporary housing while waiting for the project to complete and move into their new homes.
Datuk Raja Nong Chik also said the scheme is a win-win situation for the residents as they will be getting a new 3 bedroom flat worth RM300,000.