The Malaysia Short-Term Rental Accommodation Association (MySTRA) has thrown its support behind Penang’s new licensing framework for short-term rentals but warned that the minimum combined annual charge of RM2,800 per unit could price out small operators and individual hosts.
Under the Private Accommodation By-Laws 2026, which took effect on 1 August, operators must pay an RM50 application fee, an annual licence fee starting at RM1,000 for premises with up to three rooms, plus a separate annual TIP fee of RM1,800 per unit, Daily Express reported.
MySTRA President Jayden Lee said the association backs fair licensing and firm enforcement against non-compliant operators but argued the fee structure fails to distinguish between a single-unit host and a professional operator managing dozens of properties.
“A minimum annual charge of RM2,800 per unit is far too high, particularly when STRA operators and property owners are already facing rising management fees, assessment rates, utilities, maintenance costs, platform commissions, insurance, taxes and other compliance expenses,” Lee said.
He said a tiered fee structure would be fairer and fairer and workable. An individual operating one unit, he argued, should not be treated the same way as a large-scale commercial accommodation operator.
Lee also raised concerns about the collection of an estimated RM16.8 million per year, based on approximately 6,000 STRA units in Penang. If millions of ringgit are to be collected annually, he said, the industry needs clarity on how those funds will strengthen regulation and contribute to Penang’s tourism economy.
Penang was the first state in Malaysia to enforce the Private Accommodation By-Laws, with the state executive council approving the regulations on 10 June, The Star reported. State Local Government, Town and Country Planning Committee chairman Jason H’ng Mooi Lye said the by-laws give local councils clearer powers to inspect, investigate and shut down premises that breach the rules.
Operators who flout the by-laws face compounds of up to RM2,000, imprisonment of up to one year, or both. H’ng said operators would have about two months to apply, with fuller enforcement expected from 1 November.
MySTRA called for a reasonable extension of the rollout period and a phased compliance programme that prioritises registration and education before penalties and closure action. Lee noted that premises which accepted forward bookings before the announcement may also face contractual obligations to guests, online platforms and service providers.
The Malaysian Budget and Business Hotel Association (MyBHA) has backed the by-laws, calling for dedicated enforcement squads and collaboration with the Malaysian Communications and Multimedia Commission to remove online advertisements for unlicensed short-term rentals.
