KUALA LUMPUR: The proposed Residential Tenancy Act (RTA) is not needed because the current system is considered adequate, according to the Association of Valuers, Property Managers, Estate Agents and Property Consultants in the Private Sector Malaysia (PEPS) president Subramaniam Arumugam.
The Ministry of Housing and Local Government (KPKT) proposed the RTA, a statute designed to provide particular protection for both tenants and landlords in Malaysia.
Countries like the United Kingdom, Australia, New Zealand and Canada have specific laws pertaining to landlords and tenants in order to protect both parties and, in certain cases, to reduce housing discrimination.
According to Subramaniam, PEPS believes that the RTA is completely unnecessary and impractical.
He said PEPS sees it as placing restrictions on the operations of free markets.
"Micromanaging real estate in this sector in this manner, particularly through a government bureaucracy, may not align with investor-friendly policies. There is this fear that such measures could drive away investors and hinder the overall property investment climate in the country," he said.
Subramaniam was speaking at the 16th Malaysian Property Summit 2024, organised by PEPS in Johor on Jan 18, which attracted about 300 delegates.
This year's theme was "Proptech, Big Data, and High-Impact Projects: Building the Future of Real Estate.".
The topics covered by the speakers included the Johor real estate market, big data and artificial intelligence (AI), high-impact projects, government assistance, and the expanding data centre industry.
Abdul Razak Yusak, director general of the Valuation and Property Services Department (JPPH) and president of the Board of Valuers, Appraisers, Estate Agents, and Property Managers (BOVAEP), was the honoured guest of the summit.
He discussed how the Johor Bahru-Singapore Rapid Transit System, the three LRT lines, the Special Economic Zone and Special Financial Zone in Forest City, and the development of Johor as a data center hub have made the region an emerging real estate hotspot.
Samuel Tan, executive director of KGV International Property Consultants, discussed how the state's rapidly expanding infrastructure and ongoing projects like Singapore's Rapid Transit System (RTS) from Bukit Chagar to Woodland North will propel Johor Bahru's growth.
He said that the three new LRT lines and the Gemas-Johor Bahru electrified double tracking project are among the infrastructure projects that will contribute to Johor's growth and excitement.
The others are the anticipated high-speed Kuala Lumpur–Singapore, he said.
Tan said the opening of Sedenak Tech Park and the planned high-speed rail project between Kuala Lumpur and Singapore will further boost the investment environment.
Zulkifli Mohamed, project director for MRT Corp, provided an update on the RTS's construction.
During the panel discussion "Showcase on Game Changer Projects in Malaysia," he said Malaysia has completed 65 per cent of the RTS project, while construction on the Singaporean side of the RTS project has reached 67 per cent.
Zulkifli emphasised that the trains are expected to begin running on Dec 31, 2026, and that the RTS is expected to be completed by Dec 30, 2026.
He added that Malaysia and Singapore will construct a co-located Customs, Immigration and Quarantine Complex, meaning that immigration issues on either side will be resolved within their respective nations and that travelers will be able to enter both countries with no additional immigration formalities.