PENANG announced targeted reductions in its annual quit rent rates this year following complaints raised by the former chief minister and appeals from 2,885 ratepayers.
This was agreed to after a meeting between Chief Minister Chow Kon Yeow, his predecessor Lim Guan Eng, and DAP secretary-general Anthony Loke Siew Fook and party chairman Gobind Singh Deo in Kuala Lumpur.
Chow said the hopes that the matter would now be put to rest after a formal clarification and detailed explanation to the party.
He told a press conference that the state has decided to accord six exceptions in view of rising living costs and other arguments raised.
The first is that a rebate of 50 per cent would be accorded based on the previous minimum (ceiling) rate, while the state will deliberate whether a similar discount can be given for the following two years.
The second is that schools would only be imposed a quit rent of RM50 per lot, and as of March, 522 schools with land titles would be eligible.
The revision would cost the state up to RM50 million in lost revenue.
Thirdly, the state has agreed to review the appeals of landowners whose buildings sit on two or more lots.
This can address the grievances raised by 500 landowners.
Fourthly, the quit rent rates for commercial and industrial properties would not be subjected to a ceiling rate of RM325 (commercial) or RM1,200 (industrial), and the rate calculated would be based on the actual land hectare measurement.
Fifth is that the nominal quit rent rate would be fixed at RM50 for places of worship and non-profit organisations.
And lastly, the state would allow instalments to ratepayers who are struggling to pay their quit rent, said Chow.
He said that the state would continue to reach out with initiatives to explain to the public about the status of First Grade land, which involves up to 800 parcels here.
He urged landowners not to keep their land idle; they can venture into commercial, industrial, or agricultural activities to create more value for their plots.
"When they collect more income from developing or cultivating their land, then the state can likewise hope to increase their quit rent collection."
As of March, Penang has recorded 4,001 appeals, of which 2,885 were from ratepayers struggling to settle their dues, while the remaining 1,116 were appeals made on technical grounds.
The state Land and Mines Department is addressing 3,043 cases now.
As of March, a total of 163,262 or over 54 per cent of ratepayers have settled their quit rent with the state, Chow revealed.
Chow also revealed that the state may lose up to RM80 million in revenue following the move to accord discounts and allow instalment payments.
As of now, the state stands to increase its quit rent revenue by RM50 million compared to last year, when the state only secured RM116 million. - April 1, 2026.
