By Chan Wei Chao (REN 39846), Team Leader, Bricksmen Team · IQI Realty Sdn. Bhd. · Updated 1 November 2026
Malaysia is finalising national guidelines for short-term rental accommodation (STRA) such as Airbnb. Under the draft, only registered premises that meet local council licensing rules could operate. Booking platforms would be expected to check licences and remove unlicensed listings, and the government is studying a proposed cap of 180 nights a year. Deputy Housing and Local Government Minister Datuk Aiman Athirah Sabu outlined the plan in the Dewan Rakyat on 26 October 2026.
Nothing has been decided on the 180-night cap yet. Here is what the draft covers, how it would be approved, and what it means for owners and buyers in Penang.
What the draft guidelines cover
| Item | What has been said |
|---|---|
| Who is drafting | Ministry of Housing and Local Government (KPKT) through PLANMalaysia, with the Tourism, Arts and Culture Ministry (Motac), state governments and local councils |
| Licensing | Only premises that are registered and meet local council licensing conditions could operate legally |
| Booking platforms | Platforms are encouraged to check licence status automatically before a listing goes live, and are expected to remove listings of unlicensed premises or premises that break council conditions or the law. Authorities can also block illegal listings on platforms |
| 180-night cap | Proposed and under study; any limit must balance owners’ income and tourism needs with public safety and residents’ wellbeing. No decision has been made |
| Strata buildings | Operators must still follow the by-laws of the building’s joint management body (JMB) or management corporation (MC) under the Strata Management Act 2013 |
| Other areas | Registration, safety, cleanliness, operational management and operators’ responsibilities to neighbours |
| Enforcement | Councils and enforcement agencies can act under existing laws, including the Town and Country Planning Act 1976 and the Street, Drainage and Building Act 1974 |
A regulatory impact assessment has looked at compliance costs, rental income, the effect on hotels and tourism, accommodation choices for travellers and community welfare.
What happens next
- Final review with Motac. The ministry is waiting for Motac’s input.
- Cabinet. The guidelines will then go back to the Cabinet.
- National Council for Local Government. The council, chaired by the Prime Minister and attended by the chief ministers and menteri besar, must agree to them.
- Adoption by states and councils. Each state government and local council would then adopt the guidelines.
No target date has been given.
Why it was raised
The question came from Bukit Bendera MP Syerleena Abdul Rashid, who raised residents’ complaints about short-term rentals in residential buildings: security, noise, misuse of shared facilities, and strangers going in and out of the building.
What it means for Penang
Penang already has its own rules. Guidelines for private accommodation in strata schemes have applied since 1 April 2023, the state’s private accommodation by-laws took effect on 1 August 2026, and amendments that cut the yearly fees take effect on 1 January 2027. A one-room unit will pay about RM900 a year (licence plus TIP fee), down from about RM2,800, and the maximum number of rooms per premises rises from five to 10. Read the details in our Penang short-term rental rules and fees guide.
The national guidelines would add two things Penang owners should watch:
- Unlicensed listings could disappear from Airbnb and other platforms. If platforms start checking licences, an unlicensed unit may not be able to take bookings at all.
- A 180-night cap would limit income. As an illustration, at an average of RM200 a night, 180 nights would cap gross takings at RM36,000 a year, before fees, cleaning, management and other costs. This is our example only; no cap has been decided.
On Penang Island, the city council (MBPP) already does not allow short-term rentals in residential-title condominiums. It may consider commercial-title serviced apartments, SOHO units and individual-title landed homes in permitted zones, with planning approval. Even then, a building’s own management can ban short stays: in 2020 the Federal Court upheld a house rule banning short-term rentals at Verve Suites Mont’ Kiara, even though the land had a commercial-use condition.
Buying a unit for short-stay rental?
Check three things before you book:
- Title: is it a commercial-title serviced apartment or SOHO?
- Building rules: do the developer’s sale terms or the JMB/MC by-laws allow short stays?
- Numbers: does the investment still work with licence fees, a possible night cap, and a normal tenancy as your backup plan?
Commercial-title serviced suites to look at
| Project | Area | Indicative price | Completion |
|---|---|---|---|
| G’Vinton | George Town · Jalan Sultan Ahmad Shah | RM560,500–RM1,931,000 | 2028 |
| Scott @ Logan | George Town · Logan Road | RM496,800–RM1,664,800 | 2028 |
| The Crown | Tanjung Tokong · Seri Tanjung Pinang | From RM704,000 | Early 2029 |
Each unit still needs council approval, and you should confirm each building’s short-stay rules before buying. Check your loan with the mortgage calculator, and read about Penang’s rising airport traffic for the demand side.
Frequently asked questions
Is there a 180-night limit on Airbnb in Malaysia?
Not yet. The government is studying a proposed 180-night yearly cap as part of national guidelines that are still being finalised. No decision has been announced.
Will Airbnb remove unlicensed listings?
The government wants platforms to check licences before listing and to remove listings of unlicensed premises. The details will depend on the final guidelines.
When will the national STRA guidelines take effect?
No date has been given. They still need Motac’s input, Cabinet approval, agreement at the National Council for Local Government, and adoption by each state and council.
Can I run an Airbnb in a Penang condo?
Not in a residential-title condominium on Penang Island. Commercial-title serviced apartments and SOHO units may be considered by MBPP, subject to planning approval, a licence and the building’s own rules.
Need help choosing a short-stay-friendly unit?
I can send the latest price lists for commercial-title serviced suites in Penang and check each project’s title and short-stay rules. WhatsApp or call +60 10-313 9113.
Sources
- The Star: Guidelines to regulate short-term rental accommodation being finalised
- EdgeProp: Short-stay rental framework to retain strata rules, seek platform licence checks
- The Sun: KPKT moves to standardise short-term rental accommodation rules nationwide
- Business Today: Housing Ministry drafts nationwide rules to crack down on unlicensed short-term rentals
This article is general information based on parliamentary statements and published reports as of 1 November 2026. The guidelines are still a draft and may change. It is not legal or investment advice; project prices are indicative and depend on availability.