Penang Island City Council (MBPP) has granted a final extension to around 300 unlicensed vehicle repair workshops on the island to legalise their operations.
The extension came as fewer than 10% of the operators have taken up the offer so far.
They now have until Dec 31 to apply for temporary conditional licences.
Penang island mayor Datuk A. Rajendran said only 30 of the 343 unlicensed vehicle repair workshops had obtained licences.
“The response is still low. We hope the extension will encourage more operators to come forward and comply with regulations,” he said after chairing the MBPP full board meeting.
Rajendran said operators faced several obstacles, including converting land-use zoning, paying relevant fees, obtaining consent from landowners and fulfilling the city council’s technical requirements.
“We welcome them to discuss their issues with us so that we can find solutions.
“However, if their premises are located in residential areas or places unsuitable under planning requirements, they will have to relocate,” he said.
Rajendran said operators granted temporary conditional licences would be allowed to remain at their current premises for up to three years while completing the legalisation process or relocating.

MBPP has also extended the application deadline for temporary conditional licences for recycling centres and scrap collection facilities until Dec 31.
Rajendran said the scheme, introduced in September last year, was being extended for the third time because operators faced similar difficulties in meeting licensing requirements.
Of the 39 recycling centres and scrap collection operators identified, 18 have obtained temporary licences while the remaining applications have either been rejected, are still being processed or were never submitted.
The mayor said recycling operators generally required larger premises and must also pay annual licensing fees.
“The temporary conditional licence is only valid for a maximum of three years.
“It is not a permanent licence, but a transition period for operators to comply with the requirements,” he said.
Separately, MBPP approved two upgrading projects within the George Town World Heritage Site under the Penang Island Urban Area Nature-Based Climate Adaptation Programme.
The projects involve back lanes and side lanes linking Lebuh Carnarvon, Lebuh Melayu and Lorong Carnarvon as well as Jalan Masjid Kapitan Keling stretching from the MBPP Pitt Street Complex to Lebuh Armenian and Jalan Kampung Kolam.
Rajendran said the projects would incorporate nature-based solutions to improve public spaces, enhance walkability and strengthen climate resilience.
He said the projects would prioritise funding from Federal Government under Budget 2025 and the National Heritage Department, with any shortfall to be covered through the World Bank Adaptation Fund and MBPP.
On another matter, MBPP agreed to lease two heritage buildings to Mutiara Realty Construction Sdn Bhd for commercial and tuition centre use under a long-term lease of up to 45 years.
Rajendran said the company secured the lease through an open tender and was expected to pay about RM3.88mil in rental over the lease period.
He said the company would restore both heritage buildings at its own expense and provide 20 free tuition places annually as part of its community contribution.
One unit of the Kampung Kolam building and another at Mount Erskine building will be returned to MBPP for public use after restoration works are completed, he added.
