The Penang Island City Council (MBPP) has introduced new guidelines governing businesses operating on private land, effective August 21, 2026.

The Guidelines for New Applications and Management of Licences on Private Land (GTP) were approved by MBPP’s Public Health Standing Committee to regulate small-scale businesses, while addressing public nuisance, cleanliness and neighbourhood safety concerns.

MBPP Mayor Dato’ Ir. A. Rajendran said individuals operating businesses on their own residential properties, private land or the land in front of their homes are required to obtain a licence from MBPP.

Under the new guidelines, businesses must comply with several conditions:

• The business area is limited to 20ft by 20ft (400 sq ft).
• A maximum of two stalls is allowed at each site.
• Only food and beverage businesses are permitted.
• Tables and chairs are not allowed.
• The licence holder must be present at all times to supervise the business.

Rajendran said the guidelines are intended to ensure that businesses operating on private land remain small-scale and do not create problems for surrounding communities.

MBPP councillor Tan Soo Siang said the guidelines would help ensure business locations remain conducive while minimising issues such as poor sanitation, traffic congestion and safety risks.

She noted that businesses operating on private land are becoming increasingly common in George Town, and are no longer limited to village areas.

Tan added that larger operations could generate significant waste and attract more traffic, potentially affecting the comfort and safety of neighbouring residents.

Meanwhile, MBPP has also approved new Guidelines for the Transfer of Development Rights for Buildings Located within the George Town World Heritage Site.

Rajendran said the new guidelines limit the transfer to a maximum of two plots, compared with no previous limit.