KUALA LUMPUR – The government must not rush in legislating the Residential Tenancy Bill as Malaysians are still facing economic hardships due to the Covid-19 pandemic, said property sector groups.
The groups also said several clauses under the act were detrimental to landlords and tenants, while surveys on the matter involved a sample of respondents that were too small for a law affecting the entire country.
Due to this, the groups said the government, especially the Housing and Local Government Ministry, must conduct a more thorough study before tabling the act in Parliament.
National House Buyers Association honorary secretary-general Datuk Chang Kim Loong told The Vibes while a proposed law to regulate the landlord-tenant relationship is “commendable” in attempting to resolve disputes, the initial survey on the bill is flawed as it only involved 3,119 respondents, a mere 0.01% of Malaysia’s 32 million population.
This comprised only 1,104 residential owners and 2,015 tenants, he said, adding the cross-section of respondents were highly limited.
Ideally, he said the survey should involve at least 10% of the country’s working population, as the bill affects most Malaysians with income. He also said the legislation can “wait another five years” as Malaysia steers its way back to economic recovery.
“The government must allow us to recover (from the pandemic) as many individuals in the private sector have lost jobs, musicians are struggling, and the tourism sector is just getting back on its feet again,” said Chang.
For the uninitiated, the bill is being mooted to consolidate the governance and regulation of rental arrangements for private residential premises.
The act was first mooted in August 2020 by then housing and local government minister Datuk Zuraida Kamaruddin. Among other matters, the bill also looked at resolving the issue of racial discrimination in the property market.
This falls in line with the country’s National Housing Policy 2018-2025 that is aimed at establishing a robust legislation that “protects the interests of homeowners and tenants”.
In August 2020, then deputy minister Datuk Seri Ismail Muttalib said the bill would be tabled in 2021, but Zuraida’s successor last November, Datuk Seri Reezal Merican Naina Merican said the ministry was carrying out studies on it.
On January 28 this year, the ministry – through the Malaysia Productivity Corp website – launched a month-long public consultation drive seeking feedback on the proposed enactment. The feedback is expected to end on February 28.
Chang urged members of the public to submit their feedback before the end of the consultation period.
However, he had previously said racism was not only prevalent in the property sector but other areas of life and society. Therefore, he suggested educating property owners and tenants on their shared responsibility involving the rental of private premises.
Chang said at the outset, the bill has several commendable clauses, such as the establishment of a tribunal to mediate the dispute between landlords and tenants as mitigation processes in courts may be too costly.
However, the main concerns on the bill are the hefty penalties against landlords and the proposal for the government to hold rental deposits. Typically, private residential homes are rented out with at least two months’ deposit for utilities and security of the home fittings.
He said the current clauses on the bill were “plenty for the landlords to digest”.
“People may find it difficult to stomach such a new law. It’s not for the man on the street and the layman will not understand the intricacies.
The government will also be controlling the deposits, where the funds will be held by the Housing and Local Government Ministry, which is absolutely unacceptable.
“You want to keep the money to safeguard the interests of the tenant, but any landlord will not run away because it is their premises.”
Chang said most concerns involve tenants ending their tenancy before the contract expires.
He added that the common practice when ending tenancies was where the tenants asked the landlords to offset the final two months of rental payments from their initial deposits.
“The deposits are mostly for unpaid utility charges, and damage and replacement of items in the premises.
“If the government wants to hold the two months deposit, it will be to the detriment of the tenant, not just the landlord as the tenant will find it difficult to obtain refunds.
“With the bureaucracy for the refunds to become so voluminous, is the ministry capable of handling it?”
Chang also said the number of abandoned and ailing residential development projects shows the ministry’s state of “inefficiency” in carrying out its supervisory, monitoring, and policing roles.
Research Centre for The Advancement of the Community and Housing chief coordinator Datuk Iskandar Abdul Samad said although Malaysia does not have specific laws on home renting similar to those practised in Commonwealth nations such as United Kingdom, Australia, New Zealand and Canada, other laws protect the rights of landlords and tenants in the Southeast Asian nation.
Iskandar, who is also PAS treasurer, cited the Contracts Act 1950 for rental agreement disputes, Civil Laws Act 1956 for payment disputes, the Distress Act 1951, and the Specific Relief Act 1950 for unlawful eviction and unauthorised entry into premises.
It is better for the government to conduct a detailed study before this act is brought to Parliament for debate and approval,” Iskandar said on Facebook recently.
“Of course, there are many views on the proposed new act as it involves many potentially opposing parties such as homeowners and tenants.
“The views of those in the industry are also important. Therefore, stakeholders should use this consultation opportunity to express their views before the act is passed by Parliament.” – The Vibes, February 25, 2022
