KUALA LUMPUR – Former deputy Federal Territories minister Datuk Loga Bala Mohan Jaganathan urged the Perikatan Nasional administration to enact laws that provide relief to tenants embroiled in rental agreement issues brought about by Covid-19.
He told The Vibes that various businesses have been affected by the series of lockdowns for the past year, with individuals and businesses unable to cover costs for rent.
“Due to the current situation, there is no dining-in and some industries have been forced to shut.
“They (businesses) are saying their revenues have dropped to almost 60% to 70%, and are looking for (legal) protection, such as a pandemic rental relief act.”
He said businesses are forking out five-figure amounts in cash just to cover rental costs, giving the example of Brickfields, where rental rates range between RM25,000 and RM30,000 for only one floor.
“The current situation has made it difficult to do business. Because of this, a law is needed for a recovery plan.
“Since we are going into the National Recovery Plan, the law has to protect failing businesses.”
Proposing a pandemic rental relief act, he suggested that businesses unable to operate at full capacity be given a moratorium or relief.
For landlords tied to a mortgage, they should be granted a moratorium by the banks, he added.
“Those who own a property and don’t have a mortgage should be given some kind of tax relief.
“With this approach, we can save numerous industries and our economy.”
His suggestions are not limited to tenancies between businesses, as the former deputy minister acknowledged individuals and families are also having a hard time paying rent for their homes.
“All across the nation, all rental properties should be covered, including houses, especially for those who have lost their jobs and can’t make rent.
“They should be given relief, and, in turn, the government could perhaps give tax reliefs to the landlords.
“This may help people get back on their feet until they recover by getting back their incomes.” – The Vibes, June 21, 2021
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