GEORGE TOWN, September 17 — The Penang state government has redrawn its urban map for the first time in nearly six decades, declaring 25 new towns and expanding the boundaries of 10 existing ones to keep pace with the state’s rapid social and economic growth.
Chief Minister Chow Kon Yeow said the sweeping amendment, gazetted on Sept 4, affects more than 210,000 land titles and 184,000 strata titles, ensuring town status reflects present-day development under the National Urbanisation Policy 2 (2018–2025).
Many areas once classified as rural, including Bayan Baru, Bukit Jambul, Seberang Jaya, Bandar Cassia, Simpang Ampat, Teluk Air Tawar and Bertam, have grown into dense urban centres, making reclassification essential. With the changes, Penang now comprises 42 towns — 17 existing and 25 newly declared — covering key growth areas such as Batu Maung, Sungai Ara, Pulau Silikon, Alma, Bukit Minyak and Ara Kuda.
Chow said the reclassification will streamline administration, support better urban planning, and strengthen state revenue through a fairer taxation system. While the adjustments will result in higher land and parcel tax rates from 2026, the state government has postponed new strata property tax rates until 2027 to ease the transition for more than 184,000 strata property owners.
Chow stressed that the move was necessary to future-proof Penang’s development, noting that the original town classifications were made in 1966. “This reclassification is essential for improving the administration of local governments and maximising the state’s economic potential,” he said.
Adding that the changes will position Penang for sustainable growth, efficient resource management, and stronger investment opportunities as the state advances toward 2030.
