KUALA LUMPUR (Feb 5): Malaysia’s long-awaited Residential Tenancy Act (RTA) is now in the final phase of drafting and is expected to be presented in Parliament later this year, according to Housing and Local Government Minister Nga Kor Ming.
Speaking at the Malaysia Economic Forum 2026, Nga explained that the proposed law is designed to create a more structured and transparent rental market. The legislation aims to safeguard the interests of both landlords and tenants while improving access to reasonably priced housing, particularly in urban areas where renting is becoming increasingly common.
He noted that the draft is currently undergoing detailed review before being submitted to the Cabinet for approval. Once consensus is reached, the government hopes to table and pass the bill in the Dewan Rakyat within the year.
Calls to speed up the introduction of the RTA have grown in recent months, reflecting changing housing patterns. Many younger Malaysians and city-based households are choosing to rent rather than purchase homes, driven by affordability concerns and shifting lifestyle preferences.
The idea of a Residential Tenancy Act was first introduced in 2019 as part of the National Housing Policy (2018–2025), but progress has taken time due to the need for stakeholder consultation and policy refinement.
The advancement of the RTA comes shortly after the government decided to withdraw the tabling of the proposed Urban Renewal Act earlier this year. The move followed feedback from Members of Parliament, industry stakeholders, and the public, particularly regarding the protection of property owners in older and lower-cost housing areas. Authorities indicated that further revisions are being made to ensure a balanced and equitable framework.
A clearer legal framework for tenancies is expected to benefit not only residential landlords but also the broader real estate sector. In major urban centres such as Kuala Lumpur and Selangor, a well-regulated rental environment can enhance investor confidence and improve the overall attractiveness of property assets.
This is especially relevant in locations where workforce mobility is high and rental demand supports business activity. Professionals working in logistics hubs, technology parks, and manufacturing clusters often seek housing near employment centres, including areas surrounding industrial land in Selangor, factory zones in Puchong, and industrial property in the Subang area.
Similarly, established commercial districts continue to see steady demand for office space in Bukit Jalil and other business corridors, reinforcing the close relationship between employment hubs, rental housing demand, and commercial property in KL.
As Malaysia’s rental market evolves, the introduction of the Residential Tenancy Act could play a significant role in strengthening transparency, improving tenant protections, and creating a more mature and investor-friendly property ecosystem.
Malaysia