
KUALA LUMPUR, May 12 — The National Economic Action Council (MTEN) has urged local authorities and state governments nationwide to immediately reduce rental rates for premises and shops under their management.
Economy Minister Akmal Nasrullah Mohd Nasir Akmal said the move is crucial to help petty traders, night market operators and micro-entrepreneurs cope with rising operating costs, which now account for an average of seven to 58 per cent of their total business expenses.
“They are exposed to weak cash flow and often rely on a single source of income. Without intervention, the risk of business closures could increase significantly,” he said during the online briefing on the global supply crisis today.
He said the initiative has already been rolled out by federal agencies such as the Majlis Amanah Rakyat (MARA), which is offering a 20 per cent rental reduction for 7,135 of its premises starting this month.
Meanwhile, he said Kuala Lumpur City Hall (DBKL) is offering a 50 per cent rental cut for selected hawker stalls until December 2027.
“This can be implemented in a targeted way, depending on the capacity of each local authority. The aim is to ensure petty traders can keep operating, ease their burden and pressure, ensure workers continue to earn, prevent premises from standing empty and keep local economic activity going,” he said.
For the services sector, Akmal Nasrullah said the Services Producer Price Index rose 2.1 per cent in the first quarter of 2026, driven by higher prices in the accommodation, food and beverage, and transport subsectors.
“This trend suggests that cost pressures are now starting to spill over into sectors closer to consumers,” he said.
On the cost of living, he said that while overall food prices remain under control, there has been a slight upward trend in some items from May 4 to 6.
He cited examples such as mackerel, which rose from RM16.76 to RM17.42 per kg, while white prawns increased by 1.2 per cent to RM32.11 per kg.
Also seeing price increases were mustard greens, up 4.0 per cent to RM7.23 per kg, and fresh coconut milk, which rose 6.7 per cent to RM16.88 per kg.
“Although statistics show that food prices remain largely under control, the Prime Minister (Datuk Seri Anwar Ibrahim) and MTEN members have expressed concern that some groups, especially in rural areas, are already feeling the pressure of rising daily prices,” he said.
In this regard, he said MTEN has agreed that the Chief Secretary to the Government, together with all ministry secretaries-general, should coordinate government initiatives and assistance to ensure they reach target groups, especially the poor and vulnerable.
Meanwhile, he said people are increasingly shifting towards more cost-effective lifestyles, with rail passenger numbers rising 7.6 per cent and bus ridership up 10.3 per cent in April compared with the previous month.
For electricity consumption, Akmal Nasrullah said average peak demand for May 4 to 10 rose slightly by 1.4 per cent to 20,097 megawatts, compared with 19,815 megawatts the previous week, noting that the trend suggests electricity consumption remains under control despite unpredictable weather conditions.
“This trend shows that people are starting to adjust their travel patterns and daily spending towards more cost-effective choices, and in the face of volatile global costs, even small shifts like these are important in easing household financial pressure,” he said. — Bernama