Malaysia
Penang lowers quit rent for old industrial plots after landowners protest steep hikes
Penang has moved to ease the burden on certain landowners by reducing annual quit rent charges after complaints over steep increases under the state’s revised rates. — Picture by Sayuti Zainudin

GEORGE TOWN, April 1 — Penang has moved to ease the burden on certain landowners by reducing annual quit rent charges after complaints over steep increases under the state’s revised rates.

According to Free Malaysia Today (FMT), the state executive council has agreed to lower charges for older land titles used for business and industrial purposes, particularly those without planning approval.

Chief Minister Chow Kon Yeow said such plots often involved temporary structures, depots and lorry sites, with more than 800 cases identified. 

“They cannot enjoy two big discounts,” he was quoted as saying today, explaining that the affected group would not qualify for the 50 per cent rebate given to most other landowners this year.

He added that the new rate would be set at 70 sen per sq m in urban areas and 50 sen per sq m in rural areas. Previously, some of these plots were charged at the higher business or industrial quit rent rates, ranging from RM2.80 to RM3.25 per sq m.

The quit rent issue had drawn strong protests from landowners, especially those holding older titles, who said their bills had risen sharply after the revised structure was introduced.

Penang has already rolled out several relief measures, including a 50 per cent rebate for most landowners, nominal RM50 charges for schools and certain non-profit land, and instalment payment options for those facing difficulties.

As of yesterday, Chow said 163,262 landowners had paid, representing just over 54 per cent of last year’s active payers. He acknowledged collections were slightly behind, noting that some owners might be waiting to see if further concessions would be announced, FMT reported.

The state has also received 4,001 appeals, with 3,043 still under consideration.

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