Penang: The Penang state government has announced an increase in the quit rent rebate rate for 2026 to 50 percent, up from the previously announced 32.5 percent, in an effort to ease the financial burden on landowners while ensuring a gradual and controlled transition to the new quit rent rates. Chief Minister Chow Kon Yeow emphasized that the quit rent rebate is subject to the minimum quit rent rate prescribed, with the new quit rent rates remaining effective for a minimum period of 10 years as outlined in the National Land Code (Act 828).
According to BERNAMA News Agency, Chief Minister Chow explained that if the quit rent amount after applying the rebate is lower than what was paid in the previous year, the existing quit rent amount will be maintained. This approach aims to strike a balance between the interests of landowners and the state's revenue needs. In addition to the rebate, the state executive council has agreed to consider appeals for quit rent reductions, outstanding arrears, and late payment penalties through an appeal mechanism available at land offices for specific cases.
Chow further elaborated that appeal considerations would include First Grade landowners impacted by rate changes based on current land use, as well as those involved in reclassifying land from rural to urban. All appeal applications and decisions are subject to predefined conditions, with the appeal mechanism offering a channel for landowners significantly affected by the new quit rent rates.
Additionally, Chow noted that quit rent bills will be mailed to all landowners in mid-January, though they can start checking and paying their bills online from January 2. The state government had previously agreed to a 100 percent exemption on late payment penalties for outstanding quit rent and parcel rent from January 1, 2026, to December 31, 2026, covering penalty arrears amounting to RM25 million.
On September 19, the Penang state government initiated a review of quit rent rates and the reclassification of rural land to urban land, in accordance with Section 101 of the National Land Code (Act 828), set to take effect from January 1 of the following year. This review impacts nearly 370,000 land titles throughout Penang, spanning various land categories and uses, including residential, commercial, industrial, agricultural, and other special categories.