KUALA LUMPUR: The government should include provisions to help tenants pay their monthly rentals in the newly tabled Covid-19 Bill.
Charles Santiago (PH-Klang) said this could be in the form of a rental relief fund under the Temporary Measures for Government Financing (Coronavirus Disease 2019) Bill 2020, but targeted mainly at those in the B40 group.
He added the economic fallout as a result of the movement control order (MCO) has left many people jobless.
“It has reached a point where some people have been made homeless because they can no longer afford to pay rent,” he told a media conference at the Parliament building yesterday.
“I met a single mother of two children who lost her job in the catering industry. She and her children are now homeless because they cannot afford the RM550 monthly rental.”
In another case, Santiago said, a man, his pregnant wife and their two children have been living in their car parked at the Tengku Ampuan Rahimah Hospital in Klang for 10 days.
“This is just the tip of the iceberg. There are many more out there who are unable to make ends meet because they have become unemployed.”
He pointed out that the government has waived rental for six months for those living in public housing projects but others have not benefited from it.
The Finance Ministry tabled the RM45 billion Covid-19 Bill last week and the second reading is expected this week.
Santiago said even small and medium enterprises (SME) have been badly affected. “SME have collectively suffered RM14.31 billion losses during the six weeks of the MCO.”
He said the government should consider various options to resolve the problems.
“Firstly, there should be a suspension of evictions. Landlords and tenants should reach an agreement over rental payments. Otherwise landlords should give a 90-day notice before evicting tenants.
“Secondly, there should be a freeze on rental increases for residential and commercial premises until March next year and thirdly, the moratorium loan repayment should be extended.”
He said the government should compensate landlords who waive rental for poor tenants and also introduce special grants for SME that have seen a drop of 30% or more in revenue.
Santiago said these measures will help to ease the hardship faced by people and provide a lifeline for businesses so people do not lose jobs.
He said the government should consider other measures taken by countries such as Singapore, Japan and New Zealand.
In New Zealand, the government has imposed a freeze on increases in rent for residential premises. Tenants are also protected against any move to terminate their tenancy agreements.
