GEORGE TOWN: Penangites will enjoy a 50% rebate on their quit rent in 2026.
Chief Minister Chow Kon Yeow said the state executive council (MMK) agreed on Dec 10, 2025, to increase the rebate rate for 2026 from 32.5% to 50%.
"The decision was made as an additional measure to ease the financial burden of landowners and ensure that the transition to the new rates can be implemented in stages and in a controlled manner.
"The new rates will remain the same for a minimum period of 10 years as provided by law through the National Land Code (Act 828).
"The rebates are however subject to the minimum rates that have been set," he said during a press conference held at his office in Komtar on Tuesday (Dec 23).
The rebates are to ease the quit rent increase in the state, which will rise between 29% and 200% for various land categories from 2026.
Chow said the rebate is still subject to the minimum quit rent rates.
"If the quit rent amount after the rebate is lower than the existing quit rent that was paid the previous year (2025), then the existing amount will be applied.
"This approach is to ensure a balance between the interests of landowners and the state's revenue requirements," he said.
Chow said the state Land Revenue Office has agreed to allow landowners to submit appeals through the land office for reductions in quit rent, arrears and any outstanding late payment fees.
"Appeal cases that may be considered include land replanted with rubber, oil palm, coconut or fruit trees under any scheme whose tenure has ended within six years or less, land used for public purposes and land whose owners face hardships such as poverty, persons with disabilities or loss of income due to disasters and other circumstances.
"We may consider appeals by First Grade landowners affected by changes in rates based on current land use, as well as landowners involved in the process of reclassification of land from rural to urban.
"All applications and appeal decisions are subject to the conditions that have been set.
"This appeal mechanism is provided as a channel for landowners who are significantly affected by the implementation of the new quit rent rates," he said.
Chow said the state will grant a 100% exemption on fines for arrears of quit rent and parcel rent from Jan 1 to Dec 31, 2026, involving fine arrears amounting to RM25mil.
"This initiative aims to encourage landowners and parcel owners to pay their quit rent or parcel rent including any accumulated arrears.
"Quit rent bills will be posted to all landowners in mid-Jan, but landowners may check and pay their bills online starting from Jan 2," he said.
The state government reviewed the quit rent and reclassified rural to urban land throughout Penang as per the provisions of Section 101 of the National Land Code (Act 828) on Sept 19, 2025.
The implementation of the new quit rent rates involves nearly 370,000 land titles across Penang, covering various land categories and uses, including residential, commercial, industrial, agricultural and other special categories.
The total number of land titles involved in the quit rent review is 378,329, while the total number involved in the reclassification of land from rural to urban is 221,134.
The new rates will come into effect on Jan 1, 2026.
