Last month, I sat down with a boss to close his Sdn Bhd.
He survived MCO lockdown.
But he could not survive the rent.

He has been operating for many years in Johor Bahru.

Not a “new business”.
Not a “TikTok shop”.
A real SME with staff, suppliers, loyal customers, and a routine that works.

During MCO, he fought like crazy.

He negotiated.
He stretched cash flow.
He reduced wastage.
He cut costs until there was nothing left to cut.

When MCO ended, he thought the worst was over.

But after that, the pressure came quietly.

Raw materials increased.
Utilities increased.
Wages increased.
Small items that used to be “nothing” became “why so expensive now”.

Still, he continued.

Then he took out his rental renewal letter.
The rent used to be about RM9,000 per month.
The new number was moving towards RM20,000.

Same unit.
Same row of shop lots.
Same JB location.

That was the moment his whole face changed.

Not dramatic.
Just tired.

He looked at me and said one line:

“KTP, I cannot tahan already.”

And I believed him.
Because this is the part people don’t see:

Many SMEs are not dying because business is bad.
They are dying because the cost structure has become impossible.

When rent doubles, you need to sell much more just to stand still.
But customers don’t double overnight.
And you cannot simply increase your price by 20% without losing them.

So what happens?

You work harder.
You open earlier.
You close later.
You sacrifice weekends.

And yet the numbers still lose.

At that point, it is no longer business competition.
It is a stamina contest.

Who can tahan longer.
Who has deeper pockets.
Who can absorb losses longer without collapsing.

But in 2025 onwards, I see a different enemy.

Some clients are closing even though they are still “functioning”.
They have customers.
They have sales.
They have operations.

They just don’t have enough breathing space.
Rent has become a silent killer.

So if you are an SME boss reading this, I want to leave you with one question:

If your landlord increases rent next renewal… what is your Plan B?
Move location?
Downsize?
Change model?
Go more online?

Have you seen this happening in JB or your town too?
What was the biggest rental jump you’ve seen?