GEORGE TOWN — Penang has introduced a new regulatory framework to govern short-term rentals of private accommodations, including Airbnbs and homestays, effective August 1.

State local government and town and country planning committee chairman H’ng Mooi Lye announced that the Penang Private Short-term Accommodation By-Laws 2026 now require all TIP operators to obtain official licences from their respective city councils.

“The by-laws will give both the Penang Island City Council (MBPP) and Seberang Perai City Council (MBSP) the authority to license operators and act against those who fail to comply,” H’ng said during a press conference at Komtar today.

To allow the industry to adjust, the state has granted a two-month grace period. Operators must submit their applications before enforcement begins on November 1.H’ng noted that Penang is the first state in Malaysia to implement such specific by-laws. Previously, local authorities lacked the legal teeth to take action against unlicensed operators.

“Now, there is a clear legal basis for both local authorities to issue licences and take action against those who do not comply,” he added.

The move follows a surge in complaints. Between 2020 and March this year, MBPP received 364 complaints regarding public nuisance and safety issues linked to illegal TIPs, while MBSP recorded 24.