House rent increase (Kuala Lumpur)

My lease for my house is still going until June Protected content an additional option for 1 year. Now I got a letter from the landlord that per 1 January Protected content is asking a 20% higher rent due to increased estate expenses. Is it allowed that he does this during my contract period?

Further more if I would take the 1 year option is he allowed to deny me. My neighbors have similar contract and they are asked to vacate their apartment although they also have a 1 year option.