Schedule SCHEDULESupplementary
[Section 7] FORMULA FOR RENTAL 1. The amount of rental to be paid monthly by the tenant to the landlord shall be on a gradated increase as follows: Year 1 - R plus 1/4 (M - R) Year 2 - R plus 1/2 (M - R) Year 3 - R plus 3/4 (M - R) 2. Year 1 shall be deemed to be the period commencing on 1 September 1997 and ending on 31 December 1997 or the expiry of the transitional period, whichever is earlier. 3. Year 2 shall be deemed to be the period commencing on 1 January 1998 and ending on 31 December 1998 or the expiry of the transitional period, whichever is earlier. 4. Year 3 shall be deemed to be the period commencing on 1 January 1999 and ending on 31 December 1999 or the expiry of the transitional period, whichever is earlier. 5. For purposes of computation— (a) “R” is the fair rent prevailing before the repeal of the Act; and (b) “M” is the monthly rentable value of the premises fixed at one-twelfth of the annual value of the property as assessed by the local authority in which the property is situated, represented by the following formula: M = 1 x (amount of annual rate payable for the year) (percentage of the annual rate as assessed by the local authority for the year) Illustration 1. If the prevailing fair rent before the repeal of the Act is RM50, then R = RM50 2. If the annual rate payable for the year is RM108 and the percentage of the annual rate is 6 per centum per annum, then M = 1/12 x (108/6%) = 1/12 x 1,800 = RM150 3. Therefore M - R = RM(150 - 50) = RM100 4. The monthly rental to be paid by the tenant to the landlord on the gradated increase based on paragraphs 1, 2 and 3 will be— (a) Year 1 = 50 + (1/4 x 100) = 50 + 25 = RM75 (b) Year 2 = 50 + (1/2 x 100) = 50 + 50 = RM100 (c) Year 3 = 50 + (3/4 x 100) = 50 + 75 = RM125