The federal government is drafting a set of uniform planning guidelines for short-term rental accommodation (STRA), which could require all premises operating as short-term rentals in Malaysia to be registered and fully comply with local authority licensing requirements before they can legally operate.

Deputy Housing and Local Government Minister Datuk Aiman Athirah Sabu said the guidelines are being prepared by the Ministry of Housing and Local Government (KPKT) through PLANMalaysia, in collaboration with the Ministry of Tourism, Arts and Culture (Motac), state governments and local authorities. The document is currently undergoing final review with Motac before being presented to the Cabinet and subsequently the National Council for Local Government (MNKT).

Under the proposed framework, several regulatory requirements are being outlined:

Mandatory local authority licensing: STRA operators must register their premises and comply with the relevant local authority’s licensing conditions before operating legally.

Strata management rules remain applicable: Short-term rentals in strata properties must continue to comply with the respective Joint Management Body (JMB) or Management Corporation (MC) by-laws under the Strata Management Act 2013.

Automatic licence verification: The government is encouraging cooperation with digital accommodation platforms to introduce automatic licence status checks before a property can be listed.

Removal of unlicensed listings: Digital platforms are expected to take responsibility for removing listings that do not have valid licences or breach local authority requirements and existing laws.

Stronger enforcement: Local authorities and enforcement agencies may take legal action against non-compliant operators under existing legislation, including the Town and Country Planning Act 1976 and the Street, Drainage and Building Act 1974.

The proposed framework also addresses the possibility of limiting short-term rental operations to 180 nights annually. However, Aiman Athirah said a regulatory impact assessment had been conducted, and any cap would need to balance property owners’ income opportunities, tourism industry requirements, public safety and residents’ wellbeing.

Penang has already introduced its own measures, with the Guidelines for the Operation of Private Accommodation in Strata Property Schemes taking effect on April 1, 2023, followed by the gazetting of the Private Accommodation (Local Authority) By-Laws on August 1, 2026.

The nationwide guidelines are expected to provide a common regulatory framework for states and local authorities, although their implementation will depend on the subsequent approval and adoption process.

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