Penang has announced a targeted reduction in annual land charges for a group of landowners affected by steep increases under the state’s revised quit rent structure, offering welcome relief to owners of older land titles used for business and industrial purposes. The decision, announced by Chief Minister Chow Kon Yeow, follows mounting complaints from affected owners whose bills rose sharply after the state-wide rate revision.

The revised rates will now be set at 70 sen per sq m for urban land and 50 sen per sq m for rural land, specifically benefiting older titles that are being used for business and industrial activities without formal planning approval. This category includes land occupied by temporary structures, storage depots, lorry parking areas and similar uses. According to the state, more than 800 such cases have been identified so far.

Previously, some of these plots were charged significantly higher rates, with business land assessed at RM2.80 to RM3.25 per sq m, while industrial land was charged RM3.25 per sq m. The latest revision is expected to substantially reduce the financial burden on affected owners, particularly those holding legacy titles that may not reflect present-day land use realities.

However, Chow clarified that these landowners will not be eligible for the separate 50% rebate extended to most other landowners this year, noting that the state aims to strike a balance between easing the burden and maintaining a fair tax framework.

The quit rent issue has remained a closely watched topic in Penang’s property market, with over 4,000 appeals received, of which more than 3,000 are still under review. The latest move is likely to be seen as a pragmatic step towards addressing long-standing concerns, especially among owners of older commercial and industrial plots across the state.

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