Lower Commercial Rents Help Sustain MSMEs - Traders

KUALA LUMPUR, May 6 (Bernama) -- Business groups and traders have praised the government’s directive to lower commercial rental rates, calling it a significant step in supporting micro, small and medium enterprises (MSMEs) grappling with rising costs driven by the global supply crisis.

In PAHANG, the Pahang-Pekan Malay Hawkers and Small Traders Association said the lower rental rates would help ease small traders’ monthly operating costs, improving their ability to run their businesses more sustainably.

Its chairperson, Ruzaidah Anim, said the move would make a real difference, helping to ease monthly commitments and free up funds for other needs.

“When rent comes down, our monthly costs fall too, making it easier to manage expenses. Any extra can be used as working capital or to cover other costs such as utilities,” she told Bernama today.

Yesterday, Prime Minister Datuk Seri Anwar Ibrahim ordered a reduction in rental rates for business premises owned by federal agencies, including Majlis Amanah Rakyat (MARA) and UDA Holdings Bhd, from this month to help small traders lower operating costs.

In PENANG, the Penang Regional Development Authority (PERDA) has moved swiftly to offer rental discounts of up to 20 per cent to traders across more than 400 premises under its management.

PERDA chairman Datuk Dr Shaik Hussein Mydin said the minimum rental rate is as low as RM100 a month, adding that the discount would have a moderate financial impact on PERDA.

“This reflects PERDA’s commitment to supporting traders, in line with the Prime Minister’s directive, which takes into account the challenges faced by the business community,” he said.

Women’s clothing and children’s toy trader Norzaidah Johari, 52, who rents a stall at the Shah Alam MARA District Office, SELANGOR, said she pays RM1,500 a month in rent and hopes the rate can be reduced by at least 20 per cent to help ease her operating costs.

“Sales haven’t changed much, but I’m still managing to get by despite rising costs. So, if MARA lowers the rental rate as suggested by the Prime Minister, I would really welcome it and be very grateful, especially given the current uncertain economic conditions,” she said.

JOHOR cake and bread seller Mohammad Khairul Izzat Ariss, 43, who runs his business at the Batu Pahat Arked MARA, said savings from lower rental costs could be used for making promotions, increasing production and improving product quality for customers.

“For example, a RM100 monthly reduction could be used for promotions, such as introducing new products to attract customers,” he said.

Meanwhile, Nur Lily Shahira Mohd Jazlan, 28, who sells cosmetics, handbags and watches at Serambi Malam bazaar in KELANTAN, hopes the state’s local authorities will take a similar approach to help ease the burden currently faced by traders.

“I started trading at this bazaar in 2017, paying RM300 a month for the stall rental, excluding electricity bills. Last month, customer numbers also dropped,” she added.

-- BERNAMA