Penang enforces private accommodation by-laws

George Town, Penang has implemented the Private Accommodation By-Laws 2026, a crucial measure to ensure short-term accommodation operators operate legally and in compliance with regulations. MyBHA President Dr Sri Ganesh Michiel emphasized that the move is vital for resident and tourist safety, as well as fairness and legal adherence.

Penang's success in enforcing these by-laws demonstrates the impact of political will and a strong commitment to fair and legal business operations. However, enforcement is key - unlicensed operators must cease accepting bookings while licensed operators must comply with every legal requirement. Penang became the first state to enforce the by-laws on Aug 1, empowering local councils to inspect, investigate, enter, and shut down any premises violating the rules.

These violations attract a RM50 administration fee per application, an annual licence fee of RM1,000 for up to three rooms, plus RM200 for each additional room, and a maximum fine of RM2,000, one year imprisonment, or both for repeated offenses. MyBHA supports a ban on short-term rentals in all stratified residential properties, as long as planning and heritage rules are followed within the George Town World Heritage Site.

They also urge local councils to establish a dedicated enforcement squad, conduct frequent checks, respond swiftly to complaints, and impose strict penalties on violators. MyBHA further calls for the Malaysian Communications and Multimedia Commission (MCMC) to collaborate with relevant ministries, state governments, local authorities, and online booking platforms to identify and remove adverts for unlicensed short-term rentals.