Kuala Lumpur City Hall (DBKL) has announced a 50 percent reduction in rental rates for hawker sites and selected premises under its supervision. This initiative is scheduled to take effect from April 1 and will remain in place until December 31, 2027.
Federal Territories Minister Hannah Yeoh stated that the move is expected to benefit more than 10,000 hawker sites and small business premises owned by DBKL across the federal capital.
The primary goal of this measure is to lower the operating costs currently weighing on hawkers and micro-traders.
The decision comes as a response to the growing cost-of-living pressures triggered by global economic factors. Hannah Yeoh noted that these uncertainties include the fluctuation of international oil prices and increasing logistics expenses, which have impacted local businesses.
Strengthening the local economy
During a press conference at the Bandar Tasik Permaisuri hawker centre today, Hannah Yeoh highlighted that DBKL is among the first local authorities in Malaysia to roll out such a large-scale and comprehensive rental reduction. This proactive approach is intended to assist small traders and urban residents in navigating the current economic climate.
Also in attendance at the announcement were Kuala Lumpur Mayor Fadlun Mak Ujud and Bandar Tun Razak MP Wan Azizah Wan Ismail.
The minister expressed hope that the reduction in overhead costs for traders would translate into more affordable prices for residents purchasing food and daily necessities. This ripple effect is expected to provide some relief to general household expenses within the city.
Conditions for rental incentive eligibility
Providing further details on the mechanism, Fadlun Mak Ujud explained that while the reduction involves a broad 50 percent cut, a minimum rental floor has been established. The minimum monthly rental rate for any site under this scheme is set at RM50.
For premises where the existing rental is already RM50 or below, the rate will remain unchanged. Furthermore, the mayor clarified that tenants are required to settle any outstanding rental arrears before they can qualify for the new incentive.
Hannah Yeoh urged traders with existing debts to utilize this two-year window to clear their payments. She emphasized that DBKL cannot wait indefinitely for settlements given the high demand for trading sites in the capital. The city hall plans to monitor economic developments closely to ensure the welfare of Kuala Lumpur residents remains a priority.
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