A Study on The Need for A Comprehensive Law on Landlord and

A STUDY ON THE NEED FOR A COMPREHENSIVE LAW ON LANDLORD AND TENANT (RETAIL TENANCIES AND LEASES) IN PENINSULAR MALAYSIA

Assoc. Prof. Dr. Sharifah Zubaidah Syed Abdul Kader (Leader)
Assoc. Prof. Dr. Nor Asiah Mohamad
Assoc. Prof. Dr. Naemah Bte Amin
Assoc. Prof. Dr. Salina Bt. Kassim

International Islamic University Malaysia (IIUM)

ABSTRACT

This research project is an exploratory socio-legal study aimed at determining whether there is a need for comprehensive legislation governing landlord and tenant relationships in retail tenancies in Peninsular Malaysia. Unlike Australia and the United Kingdom, Malaysia currently lacks specific retail tenancy laws regulating this relationship. In these jurisdictions, it has been acknowledged that an imbalance of bargaining power exists between retail landlords and tenants, necessitating legal intervention to ensure fairness. Another key feature of retail tenancy laws in these countries is the inclusion of dispute resolution mechanisms, such as mediation, to facilitate conflict resolution outside the court system.

The study employed both quantitative and qualitative research methods. The quantitative aspect involved administering questionnaires to landlords and tenants of retail premises in the Klang Valley. Due to the centralized ownership of most shopping centers, only four landlords were sampled, while 542 tenants from three shopping centers and shop lots in residential areas participated. To complement these findings, the qualitative component of the study included three case studies, a focus group discussion, and structured interviews.

Findings from the research highlight various issues and challenges faced by both landlords and tenants of retail premises in the Klang Valley. Both parties generally support initiatives to improve the landlord-tenant relationship. In Malaysia, retail landlords are typically management companies representing owners such as Real Estate Investment Trusts (REITs), public-listed companies, or Government-Linked Companies (GLCs). The majority of tenancies are for periods of three years or less.

A significant proportion of respondents expressed support for the establishment of a specialized mediation body to handle landlord-tenant disputes in retail premises, aiming to reduce reliance on court proceedings. Furthermore, a large number of respondents favored the introduction of specific legislation to regulate landlord-tenant relationships in the retail sector.