The Residential Tenancy Act (RTA) has entered its final stage of drafting and is expected to be tabled in Parliament within the year, Housing and Local Government Minister Nga Kor Ming said, marking a significant step toward formal regulation of Malaysia’s rental housing market.
Speaking to reporters on the sidelines of the 2026 Malaysia Economic Forum on Thursday, Nga said the proposed legislation is intended to provide clearer legal protection for both tenants and landlords, while addressing the growing reliance on rental housing, particularly among younger and urban households.
“The RTA is currently under review and has now reached its final stage. I will go through each phase carefully before submitting it to the Cabinet for approval,” Nga said.
“Once the Cabinet reaches a consensus, we hope the RTA can be passed in the Dewan Rakyat within this year to protect the rights of both tenants and property owners.”
A response to structural shifts in housing demand
The push to finalise the RTA reflects deeper structural changes in Malaysia’s housing landscape. Rising property prices, tighter mortgage requirements and shifting lifestyle preferences have led to a growing proportion of households choosing to rent rather than buy, especially in major urban centres such as the Klang Valley, Penang and Johor Bahru.
Younger Malaysians, including fresh graduates and early-career professionals, are increasingly delaying homeownership due to affordability constraints. At the same time, internal migration and job mobility have increased demand for flexible housing arrangements, reinforcing the importance of a stable and predictable rental framework.
Despite this shift, Malaysia’s rental market has long operated with limited regulation, relying largely on private agreements between landlords and tenants. This has resulted in inconsistent practices, disputes over deposits, unclear termination clauses, and uneven enforcement of rights and responsibilities.
The RTA is expected to address these gaps by introducing standardised principles governing tenancy agreements, dispute resolution mechanisms and minimum obligations on both sides of the rental relationship.
Balancing tenant protection and landlord rights
Nga stressed that the proposed legislation is not intended to favour one party over the other, but rather to create a balanced framework that provides certainty and fairness.
For tenants, the Act is expected to offer clearer safeguards against arbitrary eviction, unreasonable rent increases and unfair deductions from security deposits. For landlords, it aims to provide clearer legal recourse in cases of rental default, property damage or breach of contract.
The government has repeatedly stated that the RTA will avoid overly rigid controls that could discourage property owners from offering their units for rent, a concern often raised by landlord groups and property investors.
Instead, the legislation is expected to focus on transparency, contractual clarity and dispute prevention, rather than rent control or heavy-handed enforcement.
Long legislative journey since 2019
The RTA was first proposed in January 2019 under the National Housing Policy (2018–2025) during the tenure of former housing and local government minister Datuk Zuraida Kamaruddin. However, progress on the bill slowed over subsequent years due to changes in government, competing legislative priorities and extensive stakeholder consultations.
Industry players, tenant advocacy groups, legal practitioners and policymakers have all weighed in on the proposed framework, contributing to the prolonged drafting process.
Nga said the extended timeline reflects the complexity of regulating a sector that directly affects millions of Malaysians and involves diverse interests, from individual landlords to institutional property owners and vulnerable tenant groups.
Context of broader housing policy debate
The advancement of the RTA comes at a time when housing policy is under heightened public scrutiny. In January, the Cabinet withdrew the tabling of the Urban Renewal Act to allow for substantial revisions following public backlash, concerns raised by Members of Parliament and feedback from civil society groups.
While the two pieces of legislation address different aspects of housing — one focusing on redevelopment and the other on rental regulation — both have highlighted the sensitivity of property-related reforms and the need for careful policy calibration.
Analysts note that the RTA, if passed, could help stabilise the rental market by reducing uncertainty and disputes, potentially making renting a more viable long-term option rather than a stopgap solution.
Implications for the housing ecosystem
If implemented effectively, the RTA could have broader implications beyond tenant-landlord relationships. A clearer rental framework may improve investor confidence in purpose-built rental housing, encourage better property management standards and support the development of a more mature rental market.
At the same time, policymakers will need to ensure that enforcement mechanisms are practical and accessible, particularly for lower-income tenants who may lack legal resources.
Nga reiterated that the ministry will continue engaging stakeholders as the bill moves toward Cabinet approval and parliamentary debate, emphasising that the goal is a law that is workable, fair and aligned with Malaysia’s evolving housing needs.
