Penang enforces Private Accommodation By‑Laws, vows crackdown on unlicensed short‑term rentals
GEORGE TOWN, Aug 24 — The enforcement of the Private Accommodation By-Laws 2026 marks a crucial step in ensuring that short-term accommodation operators run their businesses legally and in compliance with regulations.
President of the Malaysian Budget and Business Hotel Association (MyBHA), Dr Sri Ganesh Michiel, said the move is also vital to protect the safety of residents and tourists, while ensuring fairness and legal compliance.
“Penang has proven that effective action can be taken when there is political will and a strong commitment to ensuring fairness and legality in business operations.
“However, the effectiveness of these by-laws depends entirely on enforcement. Unlicensed operators cannot be allowed to continue accepting bookings and reaping profits, while licensed accommodation providers are required to comply with every legal requirement,” he said in a statement today.
Penang became the first state in the country to enforce the Private Accommodation By-Laws effective Aug 1, to strengthen the regulation and enforcement of private accommodation operations.
State Local Government and Town & Country Planning Committee chairman Jason H’ng Mooi Lye said the by-laws empower local councils to inspect, investigate, enter and shut down any premises found violating the rules.
He said an RM50 administration fee applies per application, while the annual licence fee is RM1,000 for premises with up to three rooms, plus RM200 for each additional room.
The private accommodation fee is RM1,800 per year per unit. Owners who flout the by-laws face compounds of up to RM2,000, imprisonment of up to one year, or both.
Meanwhile, Sri Ganesh said MyBHA backs the local authorities’ ban on short-term rentals in all stratified residential properties, subject to compliance with planning and heritage rules governing operations within the George Town World Heritage Site.
He also noted that online listings do not make a property legal without the requisite licences and approvals.
He urged both the Penang Island City Council and Seberang Perai City Council to set up a dedicated enforcement squad, conduct routine checks, act swiftly on complaints, and take stern action against violators.
“MyBHA also calls on the Malaysian Communications and Multimedia Commission (MCMC) to work with the Ministry of Tourism, Arts and Culture Malaysia, Ministry of Housing and Local Government, state governments, local authorities, and online booking platforms to identify and remove adverts for unlicensed short-term rentals,” he said.
