GEORGE TOWN: The hike in Penang’s quit rent and parcel rent rates from 2027 could become a “financial burden for ordinary Penangites”, warns MCA vice-president Datuk Tan Teik Cheng (pic).
Tan, who is the Penang MCA chairman, said many residents were already struggling with inflation, stagnant wages and the expanded Sales and Service Tax.
Nearly 400,000 land and homeowners will be affected by Penang’s sweeping reclassification of town and village boundaries, which the state government described as an administrative exercise to reflect rapid urban growth.
Tan, however, urged full transparency, starting with a disclosure of the exact percentage or quantum of increase for each area.
“Penangites deserve to know what they will be expected to pay and how the new rates differ across localities,” he said in a statement yesterday.
He also called for the state to reveal its projected additional yearly revenue, so that the public could determine whether the increase is justified, along with a breakdown of how the funds will be used.
“Without this transparency, the increase risks being seen as a revenue-raising exercise. Penangites need assurance that the money will directly benefit them, whether through better infrastructure, public services or amenities,” he said.
Tan proposed cushioning measures, including moratoriums or exemptions for low-income households, senior citizens and the unemployed, as well as an independent audit on how the revenue is spent.
On Wednesday, Chief Minister Chow Kon Yeow confirmed that 210,000 landowners and 184,000 strata title holders will pay higher rates from 2027 following the redrawing of 10 town boundaries and the gazetting of 25 areas as townships instead of villages.
The exercise, gazetted on Sept 4, is the most extensive reclassification since 1966.
The 10 expanded townships are Bayan Lepas, Balik Pulau, Batu Ferringhi, Tanjung Bungah, George Town, Bukit Mertajam, Sungai Bakap, Nibong Tebal, Kepala Batas and Butterworth.
The 25 newly created townships are Bayan Baru, Batu Maung, Sungai Ara, Pulau Silikon, Bukit Jambul, Puncak Penara, Perdana Mutiara, Pinang Emas, Bayu Emas, Lembah Perai, Alma, Bukit Minyak, Bukit Tengah, Bandar Perda, Seberang Jaya, Jawi, Bandar Cassia, Simpang Ampat, Bandar Tasek Mutiara, Sungai Dua, Teluk Air Tawar, Bertam, Tasek Gelugor, Pokok Sena and Ara Kuda.
The amendments mean that owners of these properties will see new quit rent and parcel rent rates from next year.
However, to cushion the impact, the state will defer the new parcel tax rates for strata properties until 2027.
PLANMalaysia defines a town as a gazetted area and its built-up surroundings with at least 10,000 residents, or smaller areas where at least 60% of adults work outside agriculture.
In Penang’s settlement hierarchy, George Town is recognised as a regional city, while Balik Pulau, Batu Kawan, Bandar Cassia, Bayan Baru, Bukit Mertajam, Butterworth, Kepala Batas and Nibong Tebal are listed as principal towns.
Chow said the state had considered factors such as population density, geography, environmentally sensitive areas, brownfield sites, lot boundaries, road alignments and economic potential in redrawing boundaries, though it was not legally bound to do so.
