The National Economic Action Committee in Malaysia (MTEN) has called on local authorities and state governments to take urgent measures to reduce commercial rent prices. This request arises from the difficult economic conditions faced by small traders, as operational costs have significantly increased, negatively impacting their ability to continue operating.
The Minister of Economy, Akmal Nasrullah Muhammad Naser, emphasized that this step is essential to support small traders and night market workers, who often suffer from weak cash flow and rely on a single source of income. He pointed out that costs now represent between 7% to 58% of their total business expenses, increasing the risk of business closures if swift intervention is not made.
Details of the Initiative
As part of this initiative, rent reductions have already been implemented by some federal agencies, such as the People's Trust Council (MARA), which is offering a 20% reduction on rents for 7,135 of its facilities starting this month. Additionally, the Kuala Lumpur City Hall (DBKL) has announced a 50% reduction on rents for certain stalls until December 2027.
Akmal Nasrullah clarified that these measures can be implemented in a targeted manner, depending on the capacity of each local authority, with the aim of ensuring the continuity of small traders' operations and alleviating their burden, thus helping to maintain local economic activity.
Background & Context
This move comes at a time when the Malaysian economy is experiencing increasing pressures due to global crises, including rising food and energy prices. Reports have shown that prices for services in various sectors, such as accommodation, food, and transportation, have increased by 2.1% in the first quarter of 2026, reflecting the growing pressures on consumers.
While food prices remain generally controlled, there has been a slight increase in some items, such as mackerel, which has risen in price from 16.76 to 17.42 Malaysian Ringgit per kilogram. Prices for white shrimp have also increased by 1.2% to 32.11 Malaysian Ringgit per kilogram.
Impact & Consequences
These developments indicate that economic pressures are beginning to affect the most vulnerable groups, especially in rural areas. Prime Minister Anwar Ibrahim and members of MTEN have expressed concern that certain groups, particularly in remote areas, are starting to feel the pressure of rising prices. MTEN has agreed on the necessity of coordinating government initiatives to ensure that assistance reaches targeted groups, especially the poor and needy.
In conclusion, the call for rent reductions is a vital step to support small traders and enhance the local economy amid challenging economic conditions. It reflects a proactive approach to mitigate the adverse effects of rising costs on vulnerable populations.