The Rent Control Act was enacted in 1966 to regulate the rental of privately-owned buildings built before 1948, owing to the shortage of housing during the post-war period. This Act was repeal last year to enable the landlords to "recover" possession of the controlled premises for the purpose of "development".

However, to alleviate the immediate need for alternative housing as a result of the repeal, and to facilitate adjustments by tenants to payment of rental at market rates, a transitional period was introduced, which is due to expire at the end of this month..

Thousand of tenants who cannot afford the dramatic increase in rent now face eviction. A member of Penang Repeal Rent Control Act People Action Committee, said rent increases are in three broad categories: from RM100 to RM700, RM290 to RM3,000 and the highest from RM200 to RM10,000.

Penang had 12,577 units of pre-war buildings and the repeal of the Act affects 16,116 families and 60,273 people. According to SOS, since the Act come into force, more than 100 households have been evicted, about 550 households face rising rentals and eviction, and another 220 households had moved due to unaffordable rentals.

The Penang state government which had promised the tenants that there would be a "magic formula" to resolve their problems before last November election, has so far failed to provide a safety net to the desperate pre-war premises tenants.