Penang CM Submits Report to Transport Minister Over Quit Rent Hike, Urges Media Silence

GEORGE TOWN, March 22, 2026 — Penang Chief Minister Chow Kon Yeow has submitted a report to Transport Minister and Democratic Action Party (DAP) secretary-general Anthony Loke regarding the controversial increase in the state’s quit rent rates, as political tensions continue to surround the policy change.

The report was submitted amid ongoing public debate over the revised quit rent structure introduced by the Penang state government earlier this year. The adjustment, which affects hundreds of thousands of land titles across the state, has drawn criticism from various stakeholders, including property owners and political figures who claim that the increases are too steep for certain land categories.

According to Chow, the report was intended to provide a clear explanation of the rationale behind the policy and the calculations used in determining the revised rates. He said the document outlines the state government’s position, the methodology used by land authorities, as well as the broader financial considerations behind the decision to revise the quit rent system after decades without a major review.

The Penang government had previously stated that the revision was necessary to address long-standing disparities in tax rates that had not been updated for nearly three decades. Officials argued that the outdated structure had resulted in inconsistencies where some landowners paid extremely low taxes despite using their properties for commercial or higher-value purposes.

However, the revised rates have sparked political disagreements, particularly between Chow and former Penang chief minister Lim Guan Eng, who had publicly questioned several cases of significant increases in quit rent charges. The disagreement drew national attention and prompted intervention from the party leadership.

DAP secretary-general Anthony Loke later called on both leaders to resolve the matter internally and avoid airing differences publicly, warning that continued public exchanges could undermine confidence in the state administration. Party leadership expressed concern that the ongoing dispute had escalated into a public political spat rather than a policy discussion handled through internal channels.

Following these developments, Chow said he would maintain silence in the media regarding the issue while awaiting further discussions and clarification within the party and government structures. He emphasised that the focus should remain on addressing public concerns and ensuring that the revised tax structure is implemented fairly.

The quit rent revision affects approximately 370,000 land titles across Penang, covering residential, commercial, industrial, and agricultural properties. The policy aims to modernise the state’s revenue system while ensuring land taxes reflect current land usage and market conditions.

Despite the controversy, state officials have reiterated that property owners who believe the revised rates are inaccurate or unfair have the option to file appeals for reassessment. Authorities say this mechanism is intended to ensure that legitimate grievances can be addressed while maintaining the broader objectives of the reform.

As discussions continue, the issue remains a significant topic in Penang politics, highlighting the challenges governments face when implementing fiscal reforms that directly affect property owners and businesses. Observers say the outcome of the review and internal discussions could shape how the state government proceeds with the implementation of the revised quit rent policy in the coming months.