THE PENANG Consumers Protection Association has come to the defence of the state government over the move to increase quit rent from next year, saying it was marginal and not burdensome for most ratepayers.
Although the move triggers concerns over inflation as it contributes to a living cost spike, association president Datuk K. Koris Atan said there is a need to evaluate the hike rationally and be pragmatic.
The hike is marginal except for those in the commercial and industrial parcels, he said.
The new rates on individual homes in urban areas will be 70 sen per sq metre from Jan 1, up by 16 sen, while the rate for rural land goes up by 22 sen to 50 sen per sq m.
Enterprises are scheduled to pay RM3.25 per sq m in urban areas and RM2.80 in rural areas, while the industrial rate is raised from RM1.29 to RM3.25 per sq m.
To this, Koris calculated that the residential parcels in Taman Lip Sin, would pay RM70 compared to the present rate of RM30, which was not revised for the past 30 years.
"It is an increase which we as consumers should be able to manage. There is of course concern, but a spike of RM50 is within expectations. Ratepayers can pay up to RM15 for a plate of char koay teow, I do not see why they cannot pay more for quit rent."
But Koris stressed that Penang needs to improve its quality of services in local government areas, invest in mitigating the worsening traffic congestion and high carbon emissions while also being cautious over public budget expenditure.
"Our leaders must invest in areas which yield high returns and not just be driven by political sentiments. They must place the priority of the entire state first, not just for their political survival," said Koris.
Then it makes complete sense to raise rates in the state, he argued.
Chief Minister Chow Kon Yeow announced that the state plans to increase its annual quit rent by between 29% and 200% for various land categories from next year but strata title holders would only be subjected to the increase from 2027.
Those in the industrial and commercial areas, would likely face the maximum quantum of the increase, which comes as the state searches for additional revenue to underwrite new infrastructure, welfare needs and new measures to fight climate change.
The move will affect 370,000 landowners in the state.
The Penang Ratepayers Association urged the state to introduce more land classification categories, particularly a "tourism" class, before imposing any quit rent increase, arguing that hotels and short - term rental operators profit heavily while residents bear the brunt of traffic congestion and rising living costs.
Its president K.N. Lee said that lumping tourism-related properties under the broad “commercial” category was unfair as it ignored the high returns such operators make compared to mixed-use residential or heritage homes.
"Tourism-exclusive properties such as hotels and short-term rentals generate significant income but also contribute to traffic congestion and pollution. They should be taxed at higher rates, while traditional town houses or mixed-use homes should enjoy lower rates to encourage local occupancy," she said in a statement.
Lee said the association strongly objected to the proposed quit rent hike scheduled to take effect in 2026, describing it as "one of the steepest" in recent years.
She called for a transparent and data-driven approach, including clear disclosure of valuation data, inviting town hall sessions to explain the rationale for the increases.
Penang Opposition Leader Mohamed Fauzi Yusoff from PAS, also joined in the chorus of those objecting to the hike.
He said that the blanket rates should not apply to village houses, low-cost houses, mixed-use buildings, and businesses.
He said the current zoning structure, in which areas are classified as being urban or rural, does not account for the reality of life in local communities.
Fauzi said ratepayers are already shouldering the burden of the widened sales and services tax, and despite basic goods being exempted, the move has affected the supply chain, causing the prices of daily goods to increase.
The reclassification of localities from rural to urban, see Penang formally adopting 42 townships throughout the nation's second smallest state.
It also reflects that the state has among the highest gearing ratio for density, another factor driving the worsening congestion on the roads here.
The 25 newly created townships are Bayan Baru, Batu Maung, Sungai Ara, Pulau Silikon, Bukit Jambul, Puncak Penara, Perdana Mutiara, Pinang Emas, Bayu Emas, Lembah Perai, Alma, Bukit Minyak, Bukit Tengah, Bandar Perda, Seberang Jaya, Jawi, Bandar Cassia, Simpang Ampat, Bandar Tasek Mutiara, Sungai Dua, Teluk Air Tawar, Bertam, Tasek Gelugor, Pokok Sena and Ara Kuda. - September 22, 2025.
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