Malaysia’s National Economic Action Council (MTEN) has called on local authorities and state governments to reduce rental rates for premises and shops they manage starting May 2026 [1, 2, 3]. The directive, issued after a meeting chaired by Prime Minister Anwar Ibrahim, targets easing operating costs that currently account for 7% to 58% of expenses for petty traders, night market operators, and micro-entrepreneurs, Economy Minister Akmal Nasrullah Mohd Nasir said [1, 2, 3].
Prime Minister Anwar Ibrahim stressed the need for broader local authority action, saying, “I stress that more local authorities across the country need to implement this initiative to help ease the burden of hawkers and small traders who are squeezed by rising operating costs” [4]. The government aims for targeted reductions based on each authority’s financial capacity [1, 5, 6, 3].
In the capital, Kuala Lumpur City Hall (DBKL) has been offering a 50% rental cut for selected hawker stalls since April 1, 2026, with the measure set to last until December 31, 2027 [1, 4, 2]. Meanwhile, Majlis Amanah Rakyat (MARA) provides a 20% reduction for 7,135 premises starting this month [1, 4, 2].
Housing and Local Government Minister Nga Kor Ming reiterated the push for rental reductions until the end of 2026 nationwide. He said the cuts would help sustain small traders and stabilize prices, noting, “By providing this rent reduction, we are not only helping the survival of small traders, but also helping to ensure the stability of goods and service prices for consumers” [5, 6, 3]. He called the measure “a strategic move” to ease operating costs and stimulate grassroots economic growth [3].
The call comes amid rising cost pressures. The Services Producer Price Index rose 2.1% in the first quarter of 2026, driven by higher costs in accommodation, food and beverage, and transport sectors [1, 2]. Some food prices, including mackerel, white prawns, mustard greens, and fresh coconut milk, showed slight increases early this month [1, 2].
Economy Minister Akmal Nasrullah warned that many small traders are exposed to weak cash flow and rely on single income sources, adding, “Without intervention, the risk of business closures could increase significantly” [1].
The National Economic Action Council’s May 12 public urging marks an effort to ensure local councils implement rental cuts promptly to support micro-entrepreneurs and hawkers facing rising expenses [1, 2]. Housing Minister Nga Kor Ming’s reminder on May 14 reinforces this call for support through the end of the year [5, 6, 3].
