GEORGE TOWN: Several landowners who criticised Penang’s latest quit rent revision had left out key details, such as their lot size and the actual business or industrial use of their land, says Penang Chief Minister Chow Kon Yeow.
Responding to their criticism, some amplified by Bagan MP Lim Guan Eng, Chow said the cases involved land with First Grade titles, a type of freehold statutory title issued before the National Land Code that did not specify land-use conditions at the time.
He said authorities also found several other cases of quit rent increases that involved land where multiple buildings, businesses and factories were already operating. In a case in Juru, the quit rent for a 0.32ha plot rose from RM4 to RM8,991. This example was cited by Lim in calling for the state government to make fair and reasonable revisions.
Responding to this, Chow said the land was being used for business premises, including a lorry parking area.
“The sum looks ‘frightening’, but look at the details.
“Checks by the Land Office showed that many affected landowners had been paying very low quit rent for more than 30 years.
“The increase is due to factors such as changes in land use, land size and whether the land is classified as rural or urban.
Under the Penang State Land Rules gazetted on Sept 11, 2025, land classified as industrial is taxed at RM3.25 per sq m across the state, while commercial land is taxed at RM3.25 per sq m in urban areas and RM2.80 per sq m in rural areas.
Chow said there are about 230,000 plots with First Grade titles in Penang.
Of these, 126,516 are residential lots, followed by agricultural (35,624), commercial (28,015), village houses (13,737) and industrial (3,499).
