What Did Rentals Look Like Since Merdeka 1957

Malaysia has come a long way since our independence from colonial powers and the formation of Malaysia later in 1963. We are a nation steeped in various cultures and built by different ethnic groups coming together. We’re proud to show our multicultural harmony, but with it comes conflict. Tensions arise, leading to negative sentiments and prejudices, slowly morphing into the tolerance we experience today. 

So let’s recap how this looked in the rental property world throughout Malaysia’s history.

Racial discrimination, a deeply rooted global issue, manifests in various forms, and Malaysia is no exception. One of its most insidious manifestations is in the housing market, where tenants and renters often face discrimination based on race. 

To understand the problem, it’s crucial to grasp Malaysia’s rich tapestry of ethnic groups, primarily comprising the Malays, Chinese, Indians, and indigenous peoples. These groups have coexisted for centuries, with each community contributing uniquely to the country’s cultural, economic, and social landscape. Yet, integration across these groups has always been challenging due to historical, political, and socio-economic factors.

Renting a home in Malaysia has evolved dramatically over the years, much like the rest of the country itself. What once started as a simple arrangement between two parties has developed into a sophisticated, often complex system, influenced by legal frameworks, market forces, and socio-cultural factors. The journey of renting in Malaysia is not just an economic narrative; it’s also a story of how society has changed, and how the practice of renting has adapted to serve the needs of a growing, increasingly diverse population.

Colonial Times

Before Malaysia gained independence in 1957, rental arrangements were largely informal, often based on oral agreements between landlords and tenants. Traditional houses, typically ‘kampung’ style, were the common dwellings available for rent, mostly in rural areas. Land was abundant, and so the concept of property investment for rental income was not as prevalent. There were no elaborate contracts, and often, agreements were made with a handshake, built on trust and community ties. 

Under British colonial rule, different ethnic groups were assigned specific roles in society. The Malays were largely involved in agriculture, Chinese immigrants were drawn into tin mining and commerce, while Indian immigrants were employed in the rubber estates. This economic separation also led to physical separation, as communities settled close to their places of work. The impact of this continues today, with some areas predominantly occupied by a single ethnic group, thereby setting the stage for ethnic-based housing preferences and stereotypes.

Early Independence After 1957

Post-independence, Malaysia saw rapid industrialisation and urbanisation. The migration of people from rural areas to cities created a surge in demand for housing. This period marked the rise of apartment complexes, condominiums, and gated communities, each offering a variety of rental opportunities. Additionally, the government also rolled out low-cost housing schemes for underprivileged sections of society, some of which were available for rent. 

The transition from colonial rule to independence came with its own set of challenges, including tensions among ethnic communities. Policies were established to uplift the economic position of the Malays and other indigenous peoples (known as the Bumiputera) at the expense of other ethnic groups, fostering resentment and stereotypes.

The Birth of Modern Housing

The economic landscape has also significantly influenced renting patterns. During periods of economic boom, there’s a noticeable uptick in rental prices, particularly in cities like Kuala Lumpur and Penang. The 1997 Asian financial crisis, however, led to a stagnation in the property market and subsequently impacted rental rates. Fast forward to the 21st century, the emergence of property tech platforms has streamlined the rental process, making it easier for landlords and tenants to find each other and agree on terms without the need for a middleman.

The New Economic Policy (NEP) and other affirmative action programs were implemented to redress the economic imbalances among racial groups. While these policies had some success in uplifting the Malay community, they also created points of tension, including perceptions that some groups were being unfairly advantaged. This atmosphere could contribute to discrimination in various sectors, including housing.

The Rental Market Today

When seeking property rentals in Malaysia, many renters often encounter explicit racial preferences in housing advertisements. Common phrases like “Chinese only” or “Malay preferred” are not uncommon. These practices, largely overlooked or normalised by many, raise significant concerns about integration and racial harmony in urban areas.

Perhaps the most immediate effect of racial discrimination is the limitation it imposes on tenants’ choices. A family or individual from a discriminated-against background may find their housing options significantly constrained. When landlords refuse to rent to tenants based on their ethnic or racial backgrounds, these potential renters often have no choice but to settle for less-than-ideal circumstances. They might find themselves living in less desirable neighbourhoods, far away from their workplaces, schools, or social communities. In some cases, they may even have to pay higher rents for similar or inferior properties, further straining their financial resources.

Discrimination doesn’t just hurt potential tenants; it can come back to bite landlords as well. Owners who rule out renters based on race or ethnicity risk missing out on individuals who are both reliable and financially stable. This can lead to longer periods of vacancies for their properties. In a market where every day counts, this is an unwise economic decision. Landlords should consider the cost implications carefully. Discriminatory practices don’t just tarnish their personal image; they can result in real financial losses.

Several reasons contribute to racial preferences in Malaysia’s rental market:

• Stereotypes: Some landlords might have preconceived notions about certain ethnic groups, associating them with negative behaviours like not maintaining the property or being noisy.
  
• Cultural Comfort: Some landlords may believe that renting to someone from their own community ensures a smoother landlord-tenant relationship because of shared customs and language.
  
• Economic Biases: Economic disparities between the ethnic groups might lead to biases. For instance, some landlords might believe that certain ethnicities are more financially stable and, therefore, more reliable renters.
  
  

The Impact on Individuals and Society

In Malaysia, the concept of home-ownership has always been deeply ingrained in the culture, seen as a symbol of stability and success. However, the younger generation is increasingly looking at renting as a viable option, driven by the desire for mobility and flexibility. The concept of ‘co-living’ spaces is catching on, particularly among young professionals and students, offering them the flexibility to move cities or even countries without the commitment and financial burden of a mortgage.

Racial discrimination in housing has wide-reaching effects:

Mental Health Strain: Continuous rejection or differential treatment can lead to mounting stress, heightened anxiety, and even depression. Over time, the strain on mental health can even impact an individual’s job performance, relationships, and overall quality of life.

Economic Impact: Discrimination in the housing market also translates into real economic disadvantages for the victims. When people are forced to accept substandard housing, they’re not just compromising on the quality of their living conditions; they’re often compromising on their financial future as well. This means less money for education, healthcare, or even saving for a secure future. In essence, discrimination doesn’t just cost dignity; it can also cost dollars, further widening the economic disparity among different racial and ethnic groups.

Widening Social Divides: Discriminatory practices in the housing sector contribute to larger societal problems, particularly the enhancement of social segregation. When individuals or families are limited in where they can live due to discrimination, they naturally end up in areas populated by people who look like them. This segregation limits opportunities for interactions among different ethnic groups, which are essential for fostering mutual understanding and respect. Such divides reinforce stereotypes and prejudices, making it more challenging to build a cohesive, united society that values diversity. 

Legal and Regulatory Framework

Are there any systematic protections or is the system the problem itself?

The Rental Control Act of 1966 was a turning point in the history of renting in Malaysia. The act provided a framework for the regulation of rents and the responsibilities of landlords and tenants. However, by the late ’90s, it was repealed to encourage a more free-market approach to rents, giving landlords more flexibility. Today, rental agreements are regulated by the Contracts Act of 1950 and the National Land Code of 1965, ensuring that both landlords and tenants are protected by the law.

However, one weakness in our regulatory framework is the lack of a anti-discrimination law. While the Federal Constitution guarantees protection against discrimination based on religion or race, it is primarily geared towards public sector discrimination, leaving a grey area when it comes to private housing agreements.

Malaysia does not have anti-discrimination laws that are comparable to those found in countries like the United States or the United Kingdom. In the U.S., for example, the Fair Housing Act prohibits discrimination in the sale, rental, and financing of dwellings based on race, colour, national origin, religion, sex, familial status, and disability. In Malaysia, no such equivalent federal law exists specifically to govern issues of discrimination in various sectors such as housing, employment, and education.

However, the Federal Constitution of Malaysia does contain general provisions against discrimination. Article 8(1) of the Constitution states that all persons are equal before the law and entitled to the equal protection of the law. Article 8(2) further specifies that there shall be no discrimination against citizens on the grounds only of religion, race, descent, or place of birth. These provisions set the legal framework but are not as expansive, and their application can be limited.

In practice, discrimination based on a variety of factors can and does occur. For example, there have been reports of racial discrimination in property renting, but these are not explicitly covered by Malaysian law. As such, pursuing legal action for cases of discrimination can be difficult.

Towards a More Inclusive Housing Market

Several initiatives could address the issue:

• Public Awareness: Continuous dialogues, seminars, and media campaigns can help in highlighting the negative impacts of racial discrimination in housing and encourage empathy. 
  
• Legal Reforms: Malaysia could benefit from specific laws or regulations that explicitly prohibit racial discrimination in housing, much like many other countries have.
  
• Support Groups: Establishing support platforms where renters can share their experience, seek advice, or even lodge complaints, can help in documenting and addressing the issue.
  
• Self-Regulation: Real estate platforms can play a proactive role by disallowing discriminatory content from being published on their sites. SPEEDHOME in particular has an anti-discrimination policy for every unit listed on the platform.

Tackling this issue is critical for creating more equitable societies, and it often requires concerted efforts from governments, civil society, and individuals alike.

Conclusion

The history of renting in Malaysia is a complex tapestry woven with economic, social, and legislative threads. As the nation continues to grow and change, so too will the renting landscape, always adapting to meet the diverse needs of its people. 

Racial discrimination in Malaysia, housing market or otherwise, will always be a complex issue. While Malaysia has always celebrated its multiculturalism, there’s a pressing need to address underlying prejudices to foster a truly harmonious and integrated society. The path forward requires understanding, empathy, and proactive measures. Can the nation hope to illuminate these dark corners of discrimination and stride towards a more inclusive future.

Evidently, being Malaysian goes beyond the colour of our skin. At the end of the day, we’re all human – more than our stereotypes and prejudices. SPEEDHOME hopes to be at the forefront of changing the rental landscape to better reflect the diversity that we Malaysians are. 

What matters is not your race but who you are as a person.