Penang standardises quit rent for school land at RM50 per title, easing costs for over 300 titles while adjusting rates for other land uses.
GEORGE TOWN: The Penang government has standardised quit rent payments for all school land in the state at a nominal rate of RM50 per title, effective this year.
Chief Minister Chow Kon Yeow said the decision ensures a uniform payment rate so all schools are charged the same amount. He clarified the move is not intended to increase the financial burden on educational institutions.
The new rate applies to 106 titles owned by the Federal Land Commissioner and 201 titles not owned by the Commissioner. Chow noted that international schools are exempt as they fall under the business category and are taxed accordingly.
“Previously, some schools had to pay several thousand ringgit in quit rent,” he said at a press conference. “Now, they only pay RM50 per title.”
Separately, Chow addressed the issue of higher quit rent rates faced by some landowners, particularly involving “First Grade” land. He said this followed a comprehensive review after 30 years, based on current land use as per a state gazette.
The state government had not reviewed quit rent rates since 1994. This meant many First Grade land parcels were still taxed at agricultural rates despite their actual use changing to residential, commercial or industrial purposes.
Chow cited an example of a First Grade land parcel in Seberang Perai Selatan. The 10,800 square metre plot was previously taxed RM33 per year under the agricultural category.
Following verification of its industrial use, it is now taxed at RM3.25 per square metre, bringing the total annual tax to RM35,101. Chow said the increase reflects the actual rate all industrial landowners in Penang must pay.
“This measure is fairer and more equitable, as it ensures no landowner continues to pay a lower rate solely due to First Grade status,” he stated.
To help ease the burden on landowners, the state government has approved a 50% quit rent rebate for all landowners in 2026. This rebate is subject to the minimum rate and stipulated conditions.
