2021 Budget: Klang MP wants RM1bil allocation for rent relief fund

By Arfa Yunus - November 5, 2020 @ 1:12pm

KUALA LUMPUR: The government must consider allocating RM1 billion for a Rent Relief Fund (RRF) to help targeted small, family-owned and independent businesses survive during the Covid-19 pandemic.

Klang member of parliament Charles Santiago said the fund is important as it could help small business owners breathe comfortably instead of getting further into debt.

A letter proposing the establishment of the RRF has been sent to Finance Minister Datuk Seri Tengku Zafrul Aziz, according to Santiago, adding that the government should seriously consider including the idea in the upcoming 2021 Budget.

"The fund I am proposing must include three features, firstly is a suspension of evictions where no family or business should be forced out of a premise before Dec 31, 2021.

"The second is targeted rent waivers in which the government should waive off the leases for those staying at Projek Perumahan Rakyat (PPR) and Perumahan Awam (PA) which is under the Housing and Local Government Ministry.

"The third is special grants provided by the government for small businesses experiencing 50 per cent revenue drop, year-on-year, by subsidising 60 per cent of their rental fees and capped at RM8,500 until Dec 2021.

"It is time the government helps the people in a targeted way," he told a media conference at the parliament building here today.

Charles warned that without providing the necessary support for the small businesses, they will be pushed toward unemployment and poverty.

He said small traders need all the support they could get during this trying time as rent is one of the highest operating costs and closure of these small businesses will only lead to more layoffs, non-payment of bank loans and dependence on loan sharks.