ILLEGAL DOUBLE COMMISSION IN PENANG: A BLOW TO CONSUMER RIGHTS AND THE STATE’S REPUTATION

I write with deep concern about an ongoing practice in Penang’s rental market—one that quietly burdens tenants, undermines investor confidence, and may be in breach of Malaysia’s laws protecting consumers.

It has become increasingly common for both tenants and landlords to be charged one month’s rent each as agent commission.

This appears to go against the spirit and letter of the Valuers, Appraisers, Estate Agents and Property Managers Act 1981 (Act 242), which permits only one party—typically the landlord—to bear this cost. The law, enforced by the Board of Valuers, Appraisers, Estate Agents and Property Managers (LPPEH) under the Ministry of Finance, is clear—but its enforcement in this context seems lacking.

This is not a small matter. Renters—including students, young families, and digital professionals—are often faced with paying 4 to 5 months’ rent upfront, making housing less accessible and significantly more expensive.

Many are unaware that such practices may be illegal. It is a consumer rights issue, and one that deserves thoughtful and immediate attention.

There are broader implications too:

It may deter foreign talent and remote workers under MM2H and DE Rantau from choosing Penang, especially when housing feels opaque or overly costly.

It risks dampening Malaysia’s vision of becoming a digital and semiconductor hub, where talent mobility is essential.

It contributes to regional inequality, as renters in Penang and the northern region are effectively paying more than those in other parts of the country for the same right to secure a home.

Perhaps most importantly, it erodes public trust, especially if such practices continue unchecked.

I respectfully urge the Ministry of Finance, LPPEH, and the Penang State Government to look into this matter with urgency. It is my hope that the relevant authorities will step in to enforce the law, ensure transparency, and protect the rights of both renters and landlords.

This is not just about property—it is about fairness, trust, and doing what is right for Penang, its people, and the country. With proactive leadership, I believe this issue can be resolved in a way that strengthens confidence in our systems and supports Malaysia’s global ambitions.

Sincerely,
Anas Zubedy
Penang