Penang Bans New Worker Accommodation in Residential Areas From September 1
Penang will no longer allow new temporary worker housing in residential areas, restricting such accommodation to commercial and industrial zones under tighter guidelines taking effect 1 September.
State Local Government and Town and Country Planning Committee chairman Jason H’ng Mooi Lye said the shift aims to reduce neighbourhood disturbances while the state transitions workers into Centralised Labour Quarters (CLQs), the Star reported.
“Our aim is to scale down the previous guidelines. TLQ permits issued under the 2024 guidelines are valid for three years and will expire on 31 December 2027,” H’ng said at a press conference at Komtar on 17 August.
He said the new rules were approved at the state executive council meeting on 12 August and will be handled by the Special Committee for Consideration and Evaluation of Worker Accommodation Applications, which comprises representatives from PLANMalaysia Penang, the Fire and Rescue Department and the Penang Labour Department, according to The Edge Malaysia.
Local authorities frequently receive complaints when foreign workers live next to residents’ homes, H’ng said, adding that the state has begun screening applications over the past two years.
The new guidelines also set minimum space and toilet requirements. Dormitories must provide each worker at least 3 sq m of space, with one toilet for every 15 workers. High-rise buildings require at least 3.6 sq m per worker, with one toilet for every six.
Penang currently has 1,617 permitted Temporary Labour Quarters (TLQs) under the Penang Island City Council (MBPP) and 1,492 under the Seberang Perai City Council (MBSP). By comparison, CLQ capacity remains limited, with just two facilities on the island and four in Seberang Perai.
Operators can obtain application forms from local authorities starting 17 August, with a fee of RM1,500 per unit measuring 750 sq ft or less and RM3,500 for units above 751 sq ft. Every operator must first obtain a local authority permit before applying for a Certificate of Accommodation from the Penang Labour Department.
Existing accommodations in residential areas will face review if operators apply to continue. H’ng cited long-standing premises such as those in Taman Pelangi near Juru as examples that would be examined, The Star noted.
The state government also considered the needs of small and medium enterprises, including restaurant operators and small-scale factories that struggle to place workers in CLQs due to distance, before finalising the guidelines, The Edge Malaysia reported.
