Economics theory considers rent control as a form of inefficiency and distortion to the economy as a result of government intervention. It argues that rent control causes housing deterioration and abandonment of buildings which leads to decay and gradually destroys the city.

However, the reality seems to differ from the theoretical framework in the case of Malaysia. The repeal Rent Control Act 1966 in Malaysia since January 2000 has caused rent in ‘pre-war’ buildings, built before 1948, to increase Continue reading →