A Penang state assemblyman has proposed introducing a 3% property transfer premium on non-Penang buyers or sellers in an effort to curb speculative property activities and improve housing affordability for locals.

During the debate on the governor’s address at the state assembly, Ong Ah Teong said some outstation buyers viewed Penang properties primarily as investment assets rather than homes, contributing to artificial demand and rising property prices.

He proposed amendments to state land laws and regulations to impose a 3% transfer premium on buyers or sellers who are not Penang-born, permanent residents, or registered Penang voters for at least three terms.

According to Ong, the measure could help ensure the local housing market better serves Penangites instead of speculative investors.

“Property is a human right, not a speculative commodity for profit and wealth,” he said during the assembly sitting.

Ong also highlighted concerns over the growing number of unsold residential units in the state. He noted that Penang recorded 14,344 unsold homes as of the second quarter of 2024, with most units concentrated in the higher-priced segment.

He warned that the situation could worsen if developers continue prioritising high-end developments that offer better profit margins, potentially resulting in more unsold properties and a market mismatch for ordinary homebuyers.

The Batu Lanchang assemblyman further cautioned that excessive speculation could eventually contribute to a property bubble, leaving local residents to bear the economic consequences if the market weakens.

He suggested that revenue collected from the proposed levy could be channelled into a housing trust fund to support Rumah Mutiaraku projects as well as rent-to-own initiatives for the B40 group and young Penangites.

Ong also cited similar ownership controls implemented in places such as Kelantan, Sabah, Sarawak, Singapore, and Spain.

Acacia Park, the latest residential addition to Tambun Indah’s established Pearl City township in Simpang Ampat. Sitting adjacent to the completed Dahlia Garden, the development puts residents within minutes of Pearl City Mall, GEMS International School, SMJK Jit Sin II, and the township’s growing range of shops and amenities. The North-South Expressway and Penang Second Bridge are both roughly a 10-minute drive away, keeping the city and the island well within reach.

The project comprises 95 units of 2-storey terrace homes offered in two layout options. Both layouts share the same core specification: 4 bedrooms and 3 bathrooms, with every bedroom having its own attached bathroom.

Property Project : Acacia Park
Location : Pearl City, Simpang Ampat
Property Type : 2-storey terrace
Total Units: 95
Land Area: (to be confirmed)
Built-up Area: (to be confirmed)
Tenure : Freehold
Developer : Palmington Sdn. Bhd.
Indicative Price: RM700,000 onwards

DISCLAIMER: This article is solely based on research done using publicly available data. This is not an advertisement. Any claim, statistic, quote or other representation about a project or service should be verified with the developer, provider, or party in question.

About Nexus Industrial Hub

Nexus Industrial Hub is a freehold light industrial development situated in Jawi, Nibong Tebal, close to Sungai Bakap and Batu Kawan. It consists of 40 two-storey semi-detached units designed for a range of uses, including warehousing, logistics, manufacturing, and office-industrial setups. Key design elements include high ceilings, wide internal roads, multi-point entry for loading and unloading, and natural daylight to support practical operations.

The development offers three unit types with different build-up and land sizes, providing options to accommodate varying business scales. Its location is linked by the North-South Expressway and in proximity to the Penang First and Second Bridges, with nearby access to established industrial areas and local amenities.

Find out more about Nexus Industrial Hub

The Penang government has yet to make a decision on the future of the proposed RM1 billion Jelutong landfill rehabilitation and reclamation project after its Environmental Impact Assessment (EIA) application was rejected for the fifth time.

State Local Government Committee chairman H’ng Mooi Lye said the matter would be brought to the state executive council (Exco) for further discussion once an extension of time (EOT) request is submitted by the developer.

According to H’ng, the latest EIA submission was rejected by the Department of Environment (DoE) on March 2 due to unresolved technical issues.

“At this point, there is still no decision whether the project will be extended or stopped. We need to look at the full picture and consider all factors before any decision is made,” he said during the state legislative assembly sitting.

He added that the Penang Development Corporation (PDC), as the implementing agency, is expected to present a paper on the EOT request during the upcoming Exco meeting scheduled for May 20.

The project developer, PLB Engineering Bhd, has also proposed additional components for the project, including a potential public recreational park. The state government is expected to assess whether the revised proposals are viable and comply with regulatory requirements.

The issue has attracted renewed public attention following concerns raised by the Protect Karpal Singh Drive Action Committee. The group urged the state government to honour an earlier commitment by Chief Minister Chow Kon Yeow not to grant further extensions if EIA approval was not secured by Feb 26.

The committee claimed that records from the DoE’s EKAS database showed the project had failed to obtain EIA approval five consecutive times over more than 680 days. It also questioned the acceptance of a fifth submission after the stated deadline had passed and called for greater transparency regarding approvals and extensions.

While supporting efforts to rehabilitate the Jelutong landfill site, the group reiterated its opposition to the proposed coastal reclamation component, citing concerns over environmental impact and public objections raised during consultations.

The Jelutong Waste Disposal Site, located near Jalan Perusahaan Jelutong, ceased operations last November to facilitate rehabilitation works. The 34-hectare landfill had been operating for over 40 years before the state announced redevelopment plans in 2020.

The Housing and Local Government Ministry (KPKT) is exploring the introduction of an Option to Purchase (OTP) clause under the proposed Real Property Development Bill, in a move aimed at reducing sick, delayed and abandoned housing projects.

Minister Nga Kor Ming said the proposed OTP mechanism would allow both homebuyers and developers to withdraw before signing the Sale and Purchase Agreement (SPA), offering greater flexibility and lowering early financial and legal commitments.

The proposal is part of the broader “Reformasi Perumahan Madani” agenda, which seeks to modernise Malaysia’s housing framework while supporting sustainable industry growth.

According to Nga, the OTP clause could help developers better assess genuine market demand before proceeding further into project execution. This would enable more informed decision-making and reduce the risk of financial strain caused by weak sales.

“By having a clearer picture of actual demand, developers can avoid overcommitting and prevent projects from running into difficulties midway,” he said.

The initiative is expected to minimise the likelihood of projects becoming abandoned or unsold, a long-standing issue in the local property market.

Nga also highlighted the strength of Malaysia’s property sector, noting that transactions exceeded RM240 billion in 2025 — the highest in a decade — driven by improved investor confidence and stable economic conditions.

Efforts to address legacy issues are ongoing. Since December 2022, KPKT’s taskforce has revived over 1,500 sick and abandoned projects nationwide, with a combined gross development value exceeding RM140 billion, benefiting more than 176,000 homebuyers.

In parallel, the ministry is accelerating digitalisation through platforms such as e-SPA, TEDUH and the Housing Integrated Management System (HIMS) to improve transparency and efficiency.