GEORGE TOWN, Dec 23 — The Penang state government has agreed to increase the quit rent rebate rate for 2026 to 50 per cent from the previously announced 32.5 per cent, to ease the financial burden of landowners while ensuring a gradual and controlled transition to the new quit rent rates.
However, Chief Minister Chow Kon Yeow said the quit rent rebate is subject to the minimum quit rent rate prescribed, and the new quit rent rates will remain in effect for a minimum period of 10 years as provided under the National Land Code (Act 828).
“In this regard, if the quit rent amount after the rebate is lower than the existing amount paid in the previous year, the existing quit rent amount will apply.
“This approach is intended to ensure a balance between the interests of landowners and the state’s revenue requirements,” he said during a press conference today.
In addition to the rebate, the State Executive Council has agreed that, in some instances, appeals for quit rent reductions, outstanding arrears, and late-payment penalties may be considered through the appeal mechanism at land offices.
Chow added that appeal considerations would also cover First Grade landowners affected by rate changes based on current land use, as well as landowners involved in the reclassification of land from rural to urban.
All appeal applications and decisions are subject to stipulated conditions, and the appeal mechanism serves as a channel for landowners who are significantly affected by the implementation of the new quit rent rates.
He said that quit rent bills will be posted to all landowners in mid-January, but landowners may begin checking and paying their quit rent bills online starting January 2.
Previously, the state government had also agreed to grant a 100 per cent exemption from late-payment penalties for outstanding quit rent and parcel rent from January 1, 2026, to December 31, 2026, covering RM25 million in penalty arrears.
On September 19, the state government implemented a review of quit rent rates and the reclassification of rural land to urban land across Penang, in line with the provisions of Section 101 of Act 828, which will take effect from January 1 next year.
The quit rent rate review covers nearly 370,000 land titles in Penang, spanning residential, commercial, industrial, agricultural, and other special categories.
