GEORGE TOWN: The Penang government will maintain current rental rates for business premises under local authorities for the time being, said state local government and town and country planning committee chairman H'ng Mooi Lye.
In a statement on Thursday (May 7), H'ng said monthly rental rates for stalls at public markets under the Penang Island City Council (MBPP) range from RM6 to RM330, while rates under the Seberang Perai City Council (MBSP) range from RM33 to RM300.
He said rental rates for food complexes under MBPP range from RM8 to RM800 a month, while MBSP charges between RM36 and RM330.
"The prolonged geopolitical conflict in the Middle East has triggered a chain reaction in the global economy, driving up crude oil prices and logistics costs.
"The state government and local councils have also been affected, particularly by the increase in diesel prices in the international market.
"This has led to higher operational expenses for local councils, especially for the daily use of heavy vehicles for public cleaning, solid waste collection, tree maintenance, and other services," he said.
H'ng said the increase in operating costs had resulted in unplanned expenditure, putting pressure on the local councils' financial position and exceeding the allocations budgeted for 2026.
He said diesel expenditure for both councils was expected to increase by 15% to 20% this year compared with 2025.
He added that the financial impact would not be passed on to small traders for premises under the supervision of both councils.
"Local authorities in Penang will continue to maintain current rental rates for business premises under their supervision, as the rates are already reasonable and below market levels," he said.
It was reported earlier this week that Anwar urged all local authorities and state governments to reduce rental rates for small traders.
He said Putrajaya would lower rental rates at federal government-owned commercial premises from this month to ease cost pressures on small traders.
He added that the move would involve premises owned by government-linked entities and agencies, and urged state governments and local councils nationwide to adopt similar measures.
"I have sought ways to reduce the burden on small traders within our means. The first step is to reduce rental rates," he said.
