Economics

Since it may seems like a bad idea to reinstate the Rent Control Act, I would suggest an alternative approach to address the issues of the escalating rental rates in the inner city. Refereeing to the Georgetown map, World Heritage zone is in fact not very large. The green/cyan coloured is the core zone or the heart of the Heritage site while the blue/purple coloured is the buffer zone, the outer ring of the Heritage site. From that map, it can be derived that not the whole of Georgetown is heritage site, even the 1980’s hotspot Komtar is not within the zone. In other words, rental or lands would be cheaper outside from the heritage zone.

Therefore, the alternative approach would be relocation of the traditional trade. Since there is already a plan of affordable housing for those tenant at Jalan SP Cheliah (15 minute walk from Komtar), it would seem the relocation of the traditional trade would complement with the affordable homes. The idea is Penang state government can consider of finding a site for a concentrated traditional traded business. In other words, a small town or location, a new building and structure for the businesses/mall. Example: China town, it seems Penang still lacking of it, where China town exist almost in every part of major cities in the world. In the economic point of view, this traditional business zone will create many job opportunities from constructions to the completion of the new area. Example: Bugis in Singapore, it was design like the pre-war houses but indoor. Since Penang had many Singaporeans investor, and even CM Lim Guan Eng spoken about Penang becoming a little Singapore (Singapore as the role model), I do think the idea of having a relocation of the traditional traded is a very good idea. The original tenant can continue with their business, the new zone, which will be under the state government, and will have a control over the rent. It is a win-win scenario for all.

Another alternative approach is “rent regulated”. How it is different is that rent regulated consist of rent control and rent stabilization. Rent control will ONLY apply to certain building or property in a certain area, whereas rent stabilization is another set of condition, which does not apply to rent control. Example: In New York City, The rent control program generally applies to residential buildings constructed before February 1947 in municipalities that have not declared an end to the post-war rental-housing emergency. A total of 51 municipalities have rent control, including New York City, Albany, Buffalo and various cities, towns, and villages in Albany, Erie, Nassau, Rensselaer, Schenectady and Westchester counties. For an apartment to be under rent control, the tenant (or their lawful successor such as a family member, spouse, or adult lifetime partner) must have been living in that apartment continuously since before July 1, 1971. When a rent controlled apartment becomes vacant, it either becomes rent stabilized,