Penang First State To Enforce Private Homestay By-law

GEORGE TOWN, Aug 21 (Bernama) -- Penang has become the first state in Malaysia to implement the Private Homestay (Penang Local Authorities) By-Law 2026 (UUK TIP), which came into effect on Aug 1, to strengthen the regulation and enforcement of private homestay (TIP) operations.

State Local Government and and Town and Country Planning Committee chairman Jason H’ng Mooi Lye said the proposal to gazette the by-law was approved by the State Executive Council on June 10, with the state government giving operators a two-month period to apply for licences.

He said the TIP refers to short-term accommodations of no more than six consecutive months without a tenancy relationship between the owner and tenant, whether managed independently or through specific platforms for a fee.

“TIP operation is becoming increasingly popular in line with the growth of the tourism sector and high demand for short-term accommodation, while also providing an alternative option, especially for families or groups requiring more space at affordable rates,” he told a media conference at Komtar today.

However, H’ng said TIP operations must be carried out in an orderly and responsible manner to prevent disturbances to residents, including noise pollution, traffic congestion, social problems and increased maintenance costs for strata properties.

According to him, the Penang Island City Council (MBPP) received 364 complaints related to public nuisance and safety concerns arising from illegal TIP operations between 2020 and March 2026, while the Seberang Perai City Council (MBSP) received 24 complaints.

He said that under the by-law, TIP operators must obtain a licence from the relevant local authority and comply with regulations relating to operations, cleanliness, safety, prohibited activities and nuisance control.

The by-law also gives local authorities powers to conduct inspections and investigations, enter premises and close premises in the event of violations.

H’ng said an administrative fee of RM50 would be imposed for each application, while the annual licence fee would be RM1,000 for premises with up to three rooms, with an additional RM200 per year for each extra room.

In addition, an annual TIP fee of RM1,800 will also be imposed for each unit, while premises owners who fail to comply with the by-laws may be fined up to RM2,000, jailed for up to one year, or both.

He said TIP operations would not be allowed in premises owned by the government or statutory bodies, healthcare or childcare centres, workers’ hostels, private educational institutions, as well as low-cost and low-medium-cost housing, controlled-price homes and People's Housing Projects.

He added that areas where TIP operations are permitted will be subject to the controls of MBPP and MBSP, while on the island, the designated zones must be in line with the Penang Local Draft of Island City Council Local Plan 2040 and the George Town World Heritage Site Special Area Plan.

-- BERNAMA