Penang: 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.
According to BERNAMA News Agency, 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. Dr. Michiel emphasized the importance of enforcement for these by-laws, stating that unlicensed operators must not be allowed to continue operations while licensed providers adhere to legal requirements.
Penang is the first state in the country to implement the Private Accommodation By-Laws as of August 1, aiming to strengthen the regulation and enforcement of private accommodation operations. State Local Government and Town and Country Planning Committee chairman Jason H'ng Mooi Lye explained that the by-laws empower local councils to inspect, investigate, enter, and shut down premises found in violation. An RM50 administration fee is required per application, with an annual license fee of RM1,000 for premises with up to three rooms, and an additional RM200 for each extra room.
The private accommodation fee is set at RM1,800 per year per unit, and owners who violate the by-laws may face penalties of up to RM2,000, imprisonment for up to one year, or both. Meanwhile, Dr. Michiel expressed MyBHA's support for the ban on short-term rentals in all stratified residential properties, emphasizing compliance with planning and heritage rules within the George Town World Heritage Site.
He further noted that online listings do not legalize a property without the necessary licenses and approvals. Dr. Michiel urged the Penang Island City Council and Seberang Perai City Council to establish a dedicated enforcement squad, conduct routine checks, swiftly address complaints, and take firm action against violators. He also called on the Malaysian Communications and Multimedia Commission (MCMC) to collaborate with various ministries, state governments, local authorities, and online booking platforms to identify and remove ads for unlicensed short-term rentals.