The Penang state government has announced an increase in the quit rent rebate rate for 2026 to 50%, up from the previously announced 32.5%. The move is intended to ease the financial burden on landowners while allowing the transition to the revised quit rent rates to be implemented in a more gradual and controlled manner.

Chief Minister Chow Kon Yeow said the revised rebate was an additional measure to balance the interests of landowners with the state’s revenue needs. He explained that the new quit rent rates will remain in force for a minimum period of 10 years, in accordance with provisions under the National Land Code. The rebate is subject to a minimum quit rent rate, and if the payable amount after the rebate is lower than the quit rent paid in the previous year, the existing amount will continue to apply.

Chow made the announcement to reporters at Komtar on December 23, 2025. He said the decision to increase the rebate rate was approved at the State Executive Council meeting on December 10. A subsequent council meeting on December 17 agreed that appeals for reductions in quit rent, outstanding quit rent, and late payment penalties may be considered through the Land Office for specific cases.

Examples include land replanted with rubber, oil palm, coconut, or fruit trees under schemes that ended within the past six years, land used for public purposes, and landowners facing hardship such as poverty, disability, or loss of income due to disasters or other reasonable circumstances. Consideration may also be given to “First Grade” landowners affected by changes in rates based on current land use, as well as those involved in the reclassification of land from rural to urban status. All appeals are subject to established conditions.

In a related move, the state government will grant a 100% exemption on penalties for outstanding quit rent and parcel rent from January 1 to December 31, 2026, involving penalties totalling RM25 million. The initiative aims to encourage land and parcel owners to settle any accumulated arrears.

Quit rent bills reflecting the new rates will be mailed in mid-January 2026, while online checking and payment will be available from January 2, 2026. The revised rates, gazetted on September 11, 2025, will take effect on January 1, 2026, affecting nearly 370,000 land titles across the state.

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