Penang Raises Quit Rent Rebate To 50 Pct For 2026

GEORGE TOWN, Dec 23 (Bernama) -- The Penang state government has agreed to increase the quit rent rebate rate for 2026 to 50 per cent from the previously announced 32.5 per cent, to ease the financial burden of landowners while ensuring a gradual and controlled transition to the new quit rent rates.

Chief Minister Chow Kon Yeow said, however, that the quit rent rebate is subject to the minimum quit rent rate prescribed, and the new quit rent rates will remain in effect for a minimum period of 10 years as provided under the National Land Code (Act 828).

“In this regard, if the quit rent amount after the rebate is lower than the existing amount paid in the previous year, the existing quit rent amount will apply.

“This approach is intended to ensure a balance between the interests of landowners and the state’s revenue requirements,” he told a press conference here today.

In addition to the rebate, he said the state executive council has also agreed that appeals for quit rent reductions, outstanding arrears and late payment penalties may be considered through the appeal mechanism at land offices for certain cases.

Elaborating further, Chow said appeal considerations would also cover First Grade landowners affected by changes in rates based on current land use, as well as landowners involved in the process of reclassifying land from rural to urban.

He said all appeal applications and decisions are subject to stipulated conditions, and that the appeal mechanism serves as a channel for landowners who are significantly affected by the implementation of the new quit rent rates.

Chow also said quit rent bills will be posted to all landowners in mid-January, but landowners may begin checking and paying their quit rent bills online starting Jan 2.

Previously, the state government had also agreed to grant a 100 per cent exemption on late payment penalties for outstanding quit rent and parcel rent from Jan 1, 2026 to Dec 31, 2026, involving penalty arrears amounting to RM25 million.

On Sept 19, the state government implemented a review of quit rent rates and the reclassification of rural land to urban land across Penang, in line with the provisions of Section 101 of the National Land Code (Act 828), which will take effect from Jan 1 next year.

The quit rent rate review involves nearly 370,000 land titles throughout Penang, covering various land categories and uses, including residential, commercial, industrial, agricultural and other special categories.

-- BERNAMA