UDA to absorb costs of RM12.5 mil to provide rental discounts, moratoriums to ease MSME burden — Steven Sim

KUALA LUMPUR (May 8): UDA Holdings Bhd, an agency under the Entrepreneur Development and Cooperatives Ministry, will absorb RM12.5 million in costs to help ease the burden on micro, small and medium enterprises (MSMEs) amid rising cost pressures from Middle East tensions.

The measures comprise a rental discount, a moratorium to enable flexible monthly rental payments, and deferring increases on complex operational service charges at its commercial properties, Entrepreneur Development and Cooperatives Minister Steven Sim Chee Keong said in a statement on Thursday.

“UDA is expected to bear costs amounting to RM12.5 million to implement these measures for retailers and MSME entrepreneurs,” Sim said.

He said the rental discount comprises a 10% discount to all tenants and an additional targeted 10% to MSME entrepreneurs from May until December 2026.

The moratorium, meanwhile, includes allowing tenants rental arrears of up to three months based on performance assessment and operational needs.

As for deferment of complex operational service charges hikes, UDA said it will bear the cost of the increase, serving as utility cost relief for MSMEs.

The move comes after Prime Minister Datuk Seri Anwar Ibrahim called for business premises under government agencies, such as Majlis Amanah Rakyat and UDA, to reduce rental rates to ease the burden on retailers and entrepreneurs in the MSME sector.

UDA is involved in property development, investment and management, facility management and hospitality. Its shopping mall portfolio includes the Pertama Complex in Kuala Lumpur, Angsana Seremban, Angsana Ipoh Mall, and Angsana Johor Bahru Mall.

The ongoing geopolitical conflict in the Middle East, now into its third month, has disrupted the global supply chain, raising prices on a wide array of goods and services, particularly oil, and in turn energy prices.

Elevated energy prices and logistics costs introduce significant cost pressures on retailers, especially those in the MSME segment.

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