Penang’s tourism recovery and growth, as well as the livelihoods of everyday Malaysian Hosts, would be gravely affected if the state’s proposed restrictions on high-rise residential short-term rental accommodation (STRA) is implemented, Airbnb warned today.

Following more than two years of economic disruption in Penang brought on by the pandemic, this proposal risks derailing recent recovery efforts, damaging Penangites’ livelihoods and putting jobs at risk at an incredibly critical juncture.

Tourism revitalisation is an especially vital concern for locals in Penang where the tourism and services sector contributes to almost half of the state’s GDP. A recent survey commissioned by Airbnb* found:

• 60 percent of Penangites believe that short-term rental accommodation increases tourism revenue for their communities
• 58 percent of Penangites view fellow locals renting out their homes through Airbnb as having an overall positive impact
• 52 percent of Penangites believe overall that short-term rental accommodation drives benefits not only for Hosts but also businesses in the community
• 80 percent of Penangites agree that people should be allowed to use surplus vacant apartments in states like Penang as short-term rentals, in order to combat the property overhang

As of last year, Penang ranks among the top most-searched local destinations for long-term stays by Malaysian guests on Airbnb. Penang is also a popular destination for Malaysians following the return of interstate travel, being one of the top five most searched destinations on Airbnb immediately after travel restrictions were relaxed.

“With tourism playing such a crucial role in Penang’s economy, imposing such ill-considered restrictions on short-term rental accommodation (STRA) in high-rise residential buildings would negatively impact the state’s recovery momentum and long-term tourism growth. If introduced, these rules would likely impact jobs and supplemental income for tens of thousands of everyday people in Penang, and ultimately hurt local businesses and communities by making it harder for Penang to remain competitive and attract tourists,” said Mich Goh, Head of Public Policy, Southeast Asia, India, Hong Kong and Taiwan, Airbnb. “Given this proposal’s potential to damage locals’ livelihoods, it’s also disappointing that there has been no formal consultation process with the public nor industry stakeholders in Penang to date.

“Our team continues to work diligently with the goal of each stay being a positive experience for Hosts, guests and the wider community. This includes continuing to enforce our global party ban, as well as last year’s local rollout of our 24/7 Neighbourhood Support Line. We have also previously partnered with the Malaysian Vacation Rental Services Management Association to launch an industry-led Code of Conduct aimed at championing responsible hosting.”

Airbnb is strongly urging the Penang state government to reconsider its current proposal, and look to existing mechanisms under the Strata Management Act instead. Specifically, the government should let individual Joint Management Bodies (JMBs) and Management Corporations (MCs) decide whether to enact additional STRA by-laws or restrictions. This empowers residents to decide if and how STRA should be run in their buildings.

Airbnb remains committed to being a constructive and collaborative partner to governments to help ensure sensible and balanced rules can be implemented that deliver positive outcomes for all stakeholders.

*NOTE: Based on a ClearPath Strategies survey conducted amongst 1,020 Malaysians between December 23, 2021 to January 14, 2022.

The Penang state government will implement the guidelines for prohibiting short-term rentals (homestays).

State Housing, Local Government, Town and Country Planning Committee chairman Jagdeep Singh Deo said he will present the proposal to the state executive council and the state government will announce the details later.

“We do not want a situation where it will disturb the well-being of other residents. People do not want their house to become a hotel. That’s the simple reasoning behind the guideline”

Jagdeep made the above remarks when handing over the Hari Raya aid to the city hall staff outside the Penang Island City Hall Building on Tuesday morning.

He said that once the ban on short-term rental of high-rise units is implemented, Penang will become the first state in the country to implement such policy.

Does not affect long-term rental

He said that this does not affect the long-term rental of high-rise residential units; the state government does not allow high-rise units that are used for residential purposes to be “hotels”.

“There are so many hotels in the state, those looking for short-term rentals should have plenty of accommodation.”

Jagdeep said that the state government also does not allow short-term rental of landed houses. Although there will be no real law enforcement for the time being, the authorities are monitoring the situation and will start to study how to control it.

About Sactuary Terrace

A residential development by IJM Land at Alma in Bukit Mertajam. Located on 8.9 acres of land along Jalan Santuari 2, about a 20-minute drive to both Penang bridges. Nearby amenities include AEON Mall, Tesco Hypermarket, eateries, schools and banks. This development will offer 95 units of 2-storey terrace houses.

(Photos taken in Mac 2022)

Find out more about Sanctuary Terrace

The Penang state government has allocated almost RM8mil for landslide repairs along the slopes of Lorong Bukit Kukus, Paya Terubong, here that will begin in the third quarter of this year.

Penang Infrastructure and Transport Committee chairman Zairil Khir Johari said the restoration work conducted by the Penang City Council (MBPP) will be completed in 18 months, which is the first quarter of 2024.

“The state government has taken necessary preventive steps to ensure the stability of existing hill slops and not threaten the safety of the public, property and the environment of residents of Grandview Heights and bukit Saujana apartments.

“The area involves over 400 houses with over 2,000 residents and previously landslides at hill slopes have occurred in 2017, 2018 and 2020 but did not involve any loss of vehicles, or lives,” he told reporters after conducting a visit at the slope area in Paya Terubong here on Monday (April 25).

He said following the incidents, the state government through the MBPP engineering department was instructed to appoint a certified geotechnical engineering consultant to conduct an initial study and to present suggestions on slope repairs along Lorong Bukit Kukus in the first quarter of last year.

Zairil said on April 20, the state government approved almost RM8mil in allocations for slop repairs to ensure the safety and welfare of the residents and their property.

He said slope repair work in the area involve a distance of 3.5 hectares and netting has been placed at the location since 2019 as a precautionary measure to ensure that severe landslides would not occur.

He added that the state government had instructed all local authorities to monitor hill slopes periodically and to take necessary legal action against landowners, including farmers in those areas.

“We found they are conducting agricultural activities along the hill slopes in Paya Terubong, Bukit Bendera and Balik Pulau without proper approval.

“So, we ask these farmers, some of whom have been doing it for a long time, to immediately contact the MBPP by June latest to ensure that they register with the MBPP and monitoring can be conducted to ensure they comply with the guidelines involving hill slopes,” he added.

Source: Bernama

Nasdaq-listed printed circuit boards (PCBs), radio frequency (RF) components and RF microwave/microelectronic assemblies manufacturer TTM Technologies Inc is investing US$130 million (about RM550 million) to set up a plant in Penang.

In a joint statement on Monday (April 25) in conjunction with the plant’s ground-breaking ceremony, Malaysian Investment Development Authority (MIDA), InvestPenang and TTM said the latter’s expansion to Penang is in direct response to customer requirements for advanced technology PCB supply chain resiliency and diversification in regions beyond China.

They said TTM selected Penang as the location for this new plant after an extensive review of multiple countries with careful consideration of investment and operating costs, customer proximity and supply chain support.

Penang is also attractive due to its well-established electrical and electronics (E&E) industry ecosystem.

The new plant will serve TTM’s global commercial markets including networking communications, data center computing, and medical, industrial, and instrumentation.

Penang Chief Minister Chow Kon Yeow said Penang is recognised as one of the major players in the global semiconductor industry, particularly in the areas of assembly and test as well as equipment manufacturing.

“The state, via InvestPenang, strives to bolster our efforts to outpace investors’ expectations by providing continuous facilitation and utmost support along the journey,” he said.

This state-of-the-art, highly automated plant will be built upon approximately 27 acres of industrial land at Penang Science Park.

Construction is expected to take 12 to 15 months followed by equipment installations in mid-2023.

Pilot production is targeted to begin in the second half of 2023, with volume production commencing in 2024 and gradually ramping up to full Phase 1 capacity in 2025.

TTM expects the new plant to achieve full run rate revenue of approximately US$180 million (approximately RM761.5 million) in 2025.

The factory has also been planned to support a 25% upside Phase 2 expansion.

TTM president and chief executive officer Thomas Edman said the plant marks the start of an important new chapter to support customers with differentiated high value-add engineering and PCB product solutions on a global basis.

“As an early-mover into Southeast Asia for the production of advanced technology PCBs, TTM is responding to our customers’ needs for supply chain resiliency, regional diversification and growth capacity,” he said.

Source: TheEdgeMarkets.com