Penang Quit Rent Revision Needed To Correct Long-Standing Disparities, Says CM

GEORGE TOWN, Feb 20 (Bernama) -- The Penang state government has stressed that the increase in quit rent in 2026 and the gazettement of 25 new townships are necessary measures to address long-standing inequities arising from rates that have not been reviewed for the past 30 years. 

Chief Minister Chow Kon Yeow said the revision done on the rates was carried out in accordance with Section 101 of the National Land Code (Act 828), noting that the last revision was undertaken in 1994, while the gazettement of urban areas has not been updated since 1966.

“The absence of a revision over such a long period has resulted in unfair quit rent disparities between rural and urban areas. Locations such as Seberang Jaya, Bertam and Bandar Cassia are now comparable to urban areas in terms of development, and therefore reclassification is justified,” he said in a statement here today.

The statement was issued in response to claims by the Penang Ratepayers Association regarding the quit rent structure, and to clarify that the state authority is empowered under Section 101(3)(b) of Act 828 to determine rates based on land classification and usage.

Penang has implemented a revised quit rent structure effective Jan 1, 2026, involving increases across various land categories.

Chow said there are cases involving first grade landowners who had previously paid only RM48 per year based on agricultural quit rent rates, despite the land having been converted to commercial use.

“As an example, a first grade land title in the Seberang Perai Selatan (SPS) district measuring 16,035.64 square metres was previously subject to an annual quit rent of RM48 based on the agricultural (coconut) rate.

“However, current findings show that the land is being used for commercial purposes, with a quit rent rate of RM3.25 per square metre.

“This results in a revised quit rent payable amounting to RM44,900, based on the current land use, total land area and the applicable commercial rate of RM3.25 per square metre,” he said.

He said this demonstrates the landowner had benefited from an excessively low quit rent rate for three decades compared with other taxpayers.

However, Chow said that to mitigate the impact of the increase, the state government has implemented measures, including the automatic provision of a 50 per cent rebate to affected landowners.

​-- BERNAMA