Penang will maintain current rental rates for local authority premises, citing reasonable pricing and rising operational costs.
GEORGE TOWN: Penang will maintain the current rental rates for business premises under the supervision of the two state local authorities (PBTs), namely the Penang Island City Council (MBPP) and the Seberang Perai City Council (MBSP).
State Local Government and Urban and Rural Planning Committee chairman H’ng Mooi Lye said the current rental rate is being maintained for now as it is reasonable and lower than the current market rate.
“The monthly rental rates under MBPP for stalls in public markets range from RM6 to RM330, while food complexes range from RM8 to RM800.
“For MBSP, the rental rates for stalls in public markets range from RM33 to RM300, while food complexes range from RM36 to RM330,” he said in a statement today.
He said the state government, however, welcomed the Prime Minister Datuk Seri Anwar Ibrahim’s suggestion for PBTs and related agencies to consider reducing the rental rates for business premises to help petty traders affected by the increase in the cost of living and current operating costs.
H’ng said that the local authorities will also continue to review and study the Prime Minister’s recommendations from time to time based on the current financial position and capabilities of the local authorities.
He said the state government always takes a caring and proactive approach in setting the rental rates for business premises under the supervision of the PBTs, ensuring that the rates remain reasonable and lower than the current market rates, and are subject to the size, facilities and location of the business premises.
H’ng said that the prolonged West Asia conflict also has a ripple effect on the global economy, including the increase in crude oil prices and logistics costs that are affecting the operations of local authorities in the state.
He said that the increase in diesel prices in the international market has caused a sharp rise in PBT’s operational expenses, particularly involving the use of heavy vehicles for public cleaning, solid waste collection, tree maintenance and various other municipal services.
“The increase in operating costs is an unexpected expense that puts pressure on the current financial position of the local authorities and exceeds the budget allocation for 2026, with diesel expenses by both local authorities also expected to rise by 15 to 20 per cent this year,” he also said.
He added that although there is an increase in operating costs, the financial impact will not be passed on to petty traders through increased rental rates for premises under the supervision of PBTs to protect the continuity of their businesses, which are also facing current increases in operating costs.
On Tuesday, Anwar ordered the rental rates for business premises owned by all federal government agencies to be reduced starting this month to help petty traders lower their operating costs, and also urged all local authorities across the country to take the same approach.
