PENANG: Malaysia Short-Term Rental Accommodation Association (MySTRA) supports the introduction of a proper licensing framework for short-term rental accommodation in Penang but warns that the minimum combined annual charges of RM2,800 for a typical STRA unit are excessive and risk placing an unsustainable burden on hosts, operators and property owners.
Under the newly announced fee structure, an operator may be required to pay an annual licence fee starting from RM1,000 for premises with up to three rooms, together with a separate annual TIP fee of RM1,800 per unit.
This brings the minimum combined annual charge to RM2,800, excluding the RM50 application fee, additional-room charges and other regulatory and operational expenses.
MySTRA President Jayden Lee (pic) said it supports fair licensing, responsible hosting and firm enforcement against operators who refuse to comply with reasonable safety and community standards.
However, he said, licensing must encourage operators to become legal and compliant—not make compliance financially unviable.
“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,” he said.
“MySTRA is ready to sit down with the Penang Government, MBPP and MBSP immediately. Our objective is not to resist regulation, but to help develop a framework that operators can realistically comply with and that the authorities can effectively enforce,” he said.
He said the dialogue should address, among others, the basis used to determine the minimum RM2,800 annual charges, whether the fee level is proportionate to the scale and risks of individual STRA operations, how the collected fees will be used to improve regulation, enforcement, visitor safety and Penang’s tourism ecosystem, the financial impact on individual hosts, small operators and property owners, the need for different fee categories for single-unit hosts and large professional operators, the implementation period required for existing operators to understand and comply with the new requirements; and a practical mechanism for registering eligible operators and taking action against genuinely illegal or irresponsible operations.
Jayden said the RM2,800 is only the beginning of an operator’s compliance costs as the minimum RM2,800 annual charge does not represent the total cost of operating an STRA unit.
Depending on the property and management structure, he said a responsible operator may also need to bear JMB or MC registration and annual administrative fees; security deposits imposed by building man- agement, SSM registration and business-compliance expenses; assessment rates and commercial utility costs; property maintenance and management charges; fire-safety and premises-compliance expenses; public liability and property insurance; service tax and tourism-tax obligations, where applicable; online accommodation platform commissions; cleaning, and guest-management and security expenses.
“Many STRA property owners are not large corporations. They include individuals and families who own one or two units and depend on the income to meet housing- loan repayments, maintenance charges and other property expenses.
“A flat or disproportionately high annual fee does not adequately distinguish between a single-unit host and a professional opera- tor managing dozens or hundreds of units,” he said.
Jayden said licensing fees should be pro- portionate to the size and nature of the operation.
“A tiered structure would be fairer and more sustainable. An individual operating one unit should not be treated in the same way as a large-scale commercial accommodation operator,” he said.
RM16.8m collection raises questionACCORDING to Jayden, total estimated STRA units in Malaysia is 85,000 of which 7,000 STRA units are in Kota Kinabalu, Sabah and approximately 6,000 STRA units in Penang.
Based on the 6,000 STRA units, he said the combined RM2,800 annual charges could amount to as much as RM16.8 million per year if all estimated units were eligible and licensed.
“If millions of ringgit are to be collected annually from the STRA ecosystem, the industry needs to understand how these funds will strengthen regulation and contribute to Penang’s tourism economy.
He said a short notice creates significant operational pressure as the Private Accommodation By-Laws came into effect on August 1, 2026, with enforcement expected to begin on November 1, 2026.
He said premises that accepted forward bookings before the announcement may also face contractual obligations to guests, online platforms and service providers.
“MySTRA therefore calls for a reasonable extension of the implementation period, together with a phased compliance programme that prioritises registration and education before penalties and closure action," he said.
