Airbnb crackdown: Penang introduces new licensing laws for short-term rentals
GEORGE TOWN, Aug 20 — Penang has introduced a new regulatory framework to govern short-term rentals of private acc...
Penang has implemented new licensing laws for short-term rentals, effective August 1, 2026. State local government chairman H’ng Mooi Lye revealed that all TIP (Temporary Invitation Properties) operators must obtain official licenses from their respective city councils. The Penang Private Short-term Accommodation By-Laws 2026 grant local authorities the power to license operators and penalize non-compliant ones.
A two-month grace period was granted for industry adjustment, with applications due before enforcement begins on November 1. Penang is the first Malaysian state to enforce such specific by-laws, addressing a surge in complaints about illegal short-term rentals. A TIP is defined as paid accommodation for up to six months without a tenancy agreement.
Prohibited properties include government buildings, healthcare facilities, and certain housing types. Operators must pay an RM50 application fee, with annual license fees ranging from RM1,000 to RM1,800 and additional charges for extra rooms. Violations can result in fines up to RM2,000 or imprisonment.
Written by urgent.news from Malay Mail's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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