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20180619 What is the BNM approach on rental market?

20180619 (Tue)

What is the BNM approach in improving the rental market?

Unlike countries where housing are also unaffordable (e.g. Canada, New Zealand, and Australia), Malaysia does not have a legislation that is enacted specifically to govern the residential rental market.

The lack of strong legal safeguards and the absence of a speedy and affordable tenant-landlord dispute resolution process have influenced some Malaysian households to purchase rather than rent. Statistics show that Malaysia has a relatively low share of households who live in rented accommodation (24%) as compared to Canada (31%), Australia (33%) and New Zealand (36%).

In a stronger rental market, renting instead of buying would become a viable option of choice for households who are financially overburdened. In this regard, Malaysia has taken a step in the right direction.

In the Federal Budget 2018, the formulation of the Residential Tenancy Act was announced. The landmark initiative would provide legal safeguards for both landlords and tenants, encouraging both demand and supply for rental housing in Malaysia.

The next step would be to establish a Tenancy Tribunal, which offers an inexpensive option to resolve disputes between landlord and tenant.

Read more at https://www.thestar.com.my/business/business-news/2018/02/14/bank-negara-five-pronged-approach-to-afforable-housing/#h1AWdoKS3cMCKFIb.99

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