Gopeng MP Tan Kar Hing (in white) mingling with the bitcoin victims during a press conference at his service centre. -Ronnie Chin/The Star
KUALA LUMPUR: More than 60 shoplot owners in Ipoh are facing millions of ringgit in electricity claims after their tenants were found to be involved in illegal bitcoin mining activities.
In a press conference yesterday, Gopeng MP Tan Kar Hing revealed that over 30 property owners had reported the issue to their service centres, with efforts underway to gather information from more than 30 additional owners.
The claims range from RM30,000 to RM1.2 million per case.
Tan highlighted that these incidents exposed loopholes in the current legal framework.
"Under the Electricity Supply Act, Tenaga Nasional Bhd (TNB) bases its claims on revenue losses from electricity theft. However, the law does not require TNB to prove that the registered account holder is responsible for the theft.
"This creates a legal loophole, allowing illegal mining activities to go undetected while innocent property owners bear the financial burden," he said.
Tan also pointed out that illegal electricity connections could cause power outages, resulting in losses not only for homeowners but also for TNB and the country.
He urged the Energy Commission, under the Energy and Natural Resources Ministry and relevant enforcement agencies to take action against illegal bitcoin mining activities to prevent further crimes.
In the meantime, Tan said he would continue to raise these cases during the upcoming parliamentary session.
He also advised landlords to transfer TNB accounts into their tenants' names when renting out properties to avoid such incidents.
According to China Press, one property owner, Yen Pit Yun, said that the pressure of facing RM1.2 million in unpaid electricity bills from TNB could drive her to bankruptcy.
Yen explained that the upper floor of her two-storey shop lot in Panorama Lapangan Perdana, Simpang Pulai, was rented out to a tenant in July while she operated a hair salon on the ground floor.
"On Aug 30, I noticed the tenant carrying a large bag of thick electrical cables upstairs, which raised my suspicions and led me to file a police report. The next day, the tenant moved out unexpectedly.
"When I went upstairs to inspect the unit, I found it empty, with holes in the walls and damaged partitions, causing significant losses," she said.
She reported the incident to TNB, but two months later, she received a notice informing her of outstanding electricity bills exceeding RM1.2 million, leaving her feeling helpless.
Yen said her only hope now is the assistance of the Gopeng MP and others to resolve the debt issue.
Frank Knight Malaysia's Wong said Johor is an obvious market that is expected to grow.
KUALA LUMPUR: The property market is poised for growth in 2025, with a significant focus on industrial property which will be underpinned by supporting government policies and increase in foreign direct investments (FDIs), says Knight Frank Malaysia executive director of research and consultancy Amy Wong Siew Fong.
The increase in FDIs will lead to a higher number of multinational companies opting to kick start operations and thus drive the economy.
Citing a recent report conducted by Knight Frank titled “Real Estate Highlights”, Wong said respondents had ranked data centres, industrial and logistics as the top three growing real estate investment sectors for 2024.
“Moving into 2025, the green light is for data centres, industrial and logistics, while office, hospitality and retail are rather stagnant,” she said during a panel session at the 18th Bursa-Hong Leong Investment Bank (HLIB) stratum focus series here yesterday.
She highlighted that aside from the Klang Valley, Johor is an obvious market that is expected to grow, especially considering the development of the Johor-Singapore Special Economic Zone (JS-SEZ) followed by Penang.
However, in terms of investment, Wong pointed out that despite the Iskandar region playing a huge role for the JS-SEZ, the market may not be as exciting as the Johor Baru City Centre area.
“If you are talking about the JS-SEZ, I think the industrial sector will continue to be a key sector to look at and manufacturers will continue to look into areas surrounding Senai and Kulai – which always have consistent demand due to its good fundamentals,” she said.
Wong said there has also been an increase in interest in the Sarawak and Sabah region, considering its strong drive towards the green agenda.
Asked about expected downside risks for the year, Wong said there are factors that are impossible to predict such as changes in policies and rate cuts.
“With all these chess pieces in place, I think 2025 is going to be a good year for the property market,” she said.
Sharing the same optimism, HLIB group managing director and chief executive officer Lee Jim Leng said affordability remains a key factor for the property market moving forward.
“In 2025, we are expecting higher wages for civil servants and the introduction of a higher minimum wage.
“The incremental increase in disposable income is a much welcome factor in catalysing demand and raising affordability for properties across the country,” she said, adding that the current 3% overnight policy rate and stable mortgage rates are also expected to bode well for the property sector.Positive indicators such as stable employment growth rate and an expected gross domestic product growth of 4.9% for 2025, are expected to provide the right conditions for sustained growth within the property sector.
According to the National Property Information Centre, Malaysia’s property transaction values soared to RM105.65bil in the first half of 2024, marking an impressive 23.8% year-on-year growth and the highest in five years.
As of the nine months of 2024, the number was noted to have increased to RM162.96bil.
The Kuala Lumpur Property Index has increased by 31.17% in 2024 and the residential overhang situation was noted to have improved, with a 12.3% reduction in volume of unsold properties.
Purchasing a sub-sale property occasionally comes with a tenant included as part of the deal, according to the agent anyway. But what happens when all the documents are done and dusted, and then the tenant changes his/ her mind and refuses to leave?
Evictions happen more often than one might think, and the ensuing processes are some of the most headache-inducing, therapy-requiring tasks in the history of mankind.
how do cases like this even occur? sometimes, loopholes are present in documents like tenancy agreements.
As the legal contract between a landlord and a tenant, the papers outline every duty and obligation of each party while the tenancy is valid. It is extremely important to draft a well-written tenancy agreement. It might sound like the most obvious thing in the world, yet issues like these still prevail even today.
Understanding tenant’s rights
Before taking any measures, property owners need to grasp the rights afforded to tenants. Legal frameworks in most jurisdictions provide protections against unlawful eviction, which means that landlords must adhere to established protocols before evicting someone.
Ignoring these regulations can lead to legal repercussions, including financial penalties and potential lawsuits. Familiarising youself with the local tenantlandlord laws can help property owners avoid headache-inducing pitfalls.
The next course of action
■ Legal fees in eviction cases can reach up to RM30,000
■ Six months typical for case settlement
■ Keep detailed records of all interactions, payments and formal notices
should involve a thorough review of the tenancy agreement linked to the property.
As described by law firm Kevin Wu and Associates in their article titled “Tenancy Law in Malaysia: Evicting Tenants”, a tenancy agreement is a binding contract between a tenant and a landlord which outlines the rights and responsibilities of each party during the tenancy period. The tenancy period is usually created for a term which does not exceed three years, otherwise, it will be considered as a lease.
If the tenancy period has expired, they can issue a Notice to Quit, which formally requests the tenant to leave by a specific date, typically allowing a reasonable timeframe based on local regulations.
however, if the tenancy agreement is still active, the landlord will have to wait until its expiration or may need to explore other options, such as negotiating an early termination.
A Notice to Quit must be drafted per the specifics of the tenancy agreement and any local regulations, so consulting a real estate attorney is advisable.
This step ensures the notice is legally sound and appropriately delivered, protecting the landlord from potential disputes.
In the event the tenant does not move out of the rented property after the notice period ends or after the tenancy is terminated, and without the landlord’s consent, the tenant is liable to pay to the landlord double the rental payable under the tenancy pursuant to section 28(4) (a) of the civil Law Act 1956.
Attempting peaceful resolution
Often, proactive communication can help pave the way for a more positive and friendly resolution. Initiating a conversation with the tenant to discuss their situation and the possibility of vacating might be all it takes.
Offering flexible timelines or even financial incentives, such as a relocation bonus, or help with moving costs, can make the transition smoother for everyone involved. Establishing a cooperative dialogue mitigates stress and fosters goodwill, allowing both parties to reach an agreeable outcome.
If attempts at negotiation do not get the desired results and the tenant remains stubbornly uncooperative, seeking legal advice becomes paramount.
An experienced attorney specialising in landlord-tenant law can guide the property owner through the intricacies of the eviction process, from drafting necessary legal documentation to representing them in court if the situation takes a turn for the worse.
should legal proceedings become inevitable, initiating a lawsuit may involve filing a claim in a local court and subsequently obtaining a court order for eviction.
It is important to keep in mind that these processes can be time-consuming, sometimes stretching over several months and may lead to increased frustration and anxiety for property owners feeling trapped in their predicament.
The financial and emotional toll
The financial ramifications of an eviction can be substantial, adding to the overall stress of the situation. Legal fees can accumulate quickly, especially if the case drags on or requires multiple court appearances.
several studies have found that the fees can reach up to rm30,000 and the eviction process could drag on for half a year.
Additionally, there’s always the potential risk of property damage. In some unfortunate scenarios, tenants may do intentional harm to the property during their exit, resulting in costly repairs and delays in re-renting or selling the unit.
The emotional toll can also be significant. The anxiety, frustration and uncertainty in dealing with a non-compliant tenant can weigh heavily on property owners, making it difficult for them to focus on other aspects of their lives.
understanding that it’s normal for property owners to feel overwhelmed in these situations can be helpful, so seek out support from friends, family or even groups of fellow landlords who can provide the necessary guidance and reassurance needed.
Be proactive
To reduce the risk of facing similar challenges in the future, property owners should consider using several proactive strategies. First and foremost, thorough tenant screening is crucial.
conducting comprehensive background checks that include evaluating rental histories, credit scores and personal references can be beneficial.
A well-informed decision at the outset can minimise the likelihood of disputes later on.
Additionally, it is vital to draft a clear and comprehensive tenancy agreement that explicitly outlines all terms and conditions related to the lease.
This should cover aspects such as payment schedules, maintenance responsibilities, acceptable behaviour standards and clear procedures for termination.
A well-defined agreement can help forestall misunderstandings and promote clarity among both parties.
Maintaining open lines of communication with tenants is also essential. regular check-ins can help address any concerns they may have before they escalate into larger issues.
Moreover, keeping detailed records of all interactions, payments and formal notices can further protect property owners in any future disputes.
PETALING JAYA: Making landlords fully liable for their tenants is an infringement of fundamental liberties under the Federal Constitution, say property owners’ groups.
While a tenancy agreement must be in place to state the tenancy purpose and rights to terminate it, they said the proposed Residential Tenancy Act (RTA) must address all issues affecting both landlords and tenants.
Strata Owners Association Malaysia chairman Datuk Theng Book said it was unfair to put full responsibility on the landlord alone.
“Firstly, how would the landlord know if the tenant is a criminal? It is against the freedom of contract and Constitution to deal with our own property,” he said in an interview recently.
Theng, who is a lawyer, said landlords must have a tenancy agreement to spell out the purposes of the tenancy and rights to terminate it upon breaches, such as when tenants conduct illegal activities on the property.
“Or landlords can lodge a police report. The police must act,” he said.
When asked if a tenancy agreement was enough to safeguard landlords and tenants, he said it was as much as landlords can do.
“What else can landlords do? The police cannot pass their responsibility to landlords. It’s their job to go after criminals,” he said.
When asked further about the RTA, Theng said it should address the concerns of liberties being infringed while it is being drafted.
Senior lawyer Datuk Joy Appukuttan agreed, saying that the fundamental liberties under Article 5(1) of the Constitution, as well as equality before the law and protection under Article 8(1), would be infringed if the landlords are made absolutely liable for their tenants.
“The proposed RTA should be fair and address all issues affecting both landlord and tenants,” he said.
Joy, who is also Strata Property Owners Association Selangor legal adviser, said landlords could only provide stricter contractual terms in the tenancy agreement, which still boils down to enforceability.
“If the landlord knowingly allows his premises to be used for illegal purposes, then perhaps there is a case. If not, we can’t blame the landlord alone,” he added.
However, he also said the RTA was a move in the right direction.
“Many countries have such laws. However, the RTA must also provide a tribunal for adjudication of disputes between landlord and tenant.
“It is similar to the set-up of the Housing Tribunal and Strata Management Tribunal,” he said.
Joy said the tribunal could provide a swift form of remedy for landlord and tenant disputes.
“Such tribunals will be able to act swiftly and efficiently. If the landlord and tenant can represent themselves at these tribunals, then the cost would be lower.
“The current process of going to court is tedious, time consuming and costly,” he added.