Penang is tightening its rules on worker accommodation. Starting January 1 next year, the state government will stop accepting any new applications for Temporary Labour Quarters (TLQ). The focus will now shift toward helping existing operators transition to Centralised Labour Quarters (CLQ), which follow stricter standards set in the 2022 guidelines.

State executive councillor Jason H’ng Mooi Lye told the state assembly that local authorities will be working closely with current TLQ operators to ensure they meet the updated requirements. The idea is to move away from temporary setups and push for proper, purpose-built accommodations that are safer, more organised, and better for surrounding communities.

He also shared that the 2022 guidelines are currently being reviewed by PLANMalaysia. One of the options being discussed is allowing light and medium industrial zones to build their own CLQs within their premises specifically for their workers. TLQs operating in commercial areas may also be allowed to convert into CLQs, depending on feasibility.

But there’s one clear line: no CLQs will be allowed in residential zones. This means any TLQs currently located in housing areas must move out once their permits expire — and the absolute final deadline is December 31, 2027.

For context, the guidelines for temporary labour quarters only came into effect on January 1, 2024. All TLQ approvals are temporary and valid for a maximum of three years. These rules are meant to act as a short-term fix to address concerns about worker housing conditions and the impact of foreign worker placements within local neighbourhoods.

H’ng said the bigger goal is to ensure better living conditions for workers while protecting the well-being and comfort of local residents. As part of the guideline review, the state is also discussing technical matters like plot ratios, building capacity, required facilities, and the planning permission process.

As of now, Penang has a growing number of CLQ projects. Under the Penang Island City Council (MBPP), there are three operational CLQs and another one with approved planning permission. Over on the mainland under MBSP, there are three operational CLQs, seven under construction, and nine more that have already received planning permission.