GEORGE TOWN, September 19 — Penang will raise quit rent rates for the first time in three decades beginning January 1, 2026, with homeowners paying an additional 16 sen per sq metre (psm), up from RM0.54 psm, alongside a minimum charge of RM70 per lot in urban areas.
Chief Minister Chow Kon Yeow said the revision, which will affect about 370,000 land title holders, is aimed at boosting state revenue after years of stagnant rates. He assured that no further increases will be introduced for the next ten years, noting that the adjustment could raise up to RM200 million in 2026 to support welfare programmes and cost-of-living aid.
Rates for country land will increase from RM0.22 to RM0.50 psm, with a minimum of RM50 per lot, while industrial properties will now be charged RM3.25 psm compared to RM1.29 previously, regardless of location. Businesses will also see higher rates at RM3.25 psm in urban centres and RM2.80 psm in rural areas, with minimum charges of RM280 to RM325 for land under 100 psm.
To ease the transition, the state will offer a 32.5% rebate in 2026, followed by 20% rebates in 2027 and 2028, as well as a full waiver of penalties on arrears throughout next year and a 50% discount on premiums for converting agricultural land to residential use.
Chow, who also chairs the state finance, economic and land development committee, said the long-delayed review was necessary as outdated rates had deprived the government of crucial revenue and made it difficult to manage tax arrears. “This measure will strengthen Penang’s fiscal position while balancing the need to minimise burdens on the people through rebates and exemptions,” he said.
