PENANG local authorities can now issue compounds to private lodging house (TIP) operators or homeowners following complaints from residents, under new by-laws introduced to regulate short-term accommodation in the state.
State Local Government and Town and Country Planning Committee chairman H’ng Mooi Lye said the new legislation provides local authorities with the legal authority to take enforcement action against operators, unlike the previous guidelines, which allowed them only to offer advice.
He said only one TIP registration had been recorded in Seberang Perai following the introduction of the state’s 2023 guidelines.
“Before the TIP by-laws came into force, the state government did not have the relevant information or legal authority to take action,” H’ng (PH-Jawi) said when replying to a supplementary question from Lee Khai Loon (PH-Machang Bubuk) during the State Legislative Assembly sitting today.
H’ng expressed confidence that the state government will be able to regulate TIP operations more systematically as operators begin applying for licences next year.
Replying to a question by Chee Yeeh Keen (PH-Bagan Jermal) on why the Private Lodging Houses By-Laws 2026 were introduced when the TIP Guidelines were already in place, H’ng said the by-laws came into force on Aug 1, providing a legal framework for local authorities to regulate and monitor short-term accommodation operations and enforce compliance.
“The by-laws were introduced to address issues arising from unregulated operations, including noise pollution, traffic congestion, concerns over social problems and higher maintenance costs for shared facilities in stratified properties,” he explained.
H’ng said the state government had also reviewed feedback from stakeholders during a transition period from Aug 1 to Nov 1.
Following the review, the State Executive Council approved amendments to the by-laws on Oct 19, including improvements to the fees imposed.
The amendments are undergoing the gazettement process and are expected to come into force on Jan 1, 2027.
Meanwhile, H’ng said the Penang Island City Council (MBPP), PLANMalaysia and George Town World Heritage Incorporated (GTWHI) had agreed at a meeting on Sept 28 to extend TIP operations to the George Town World Heritage Site.
He said MBPP is preparing guidelines covering TIP operations in the heritage site, including the permitted percentage or ratio, in consultation with relevant departments and agencies.
He added that the guidelines will be aligned with planning policies and heritage conservation requirements to ensure that TIP operations are properly regulated while preserving the area’s residential character, Outstanding Universal Value and the well-being of residents.
Story by K.H. Ong