Penang to implement new worker housing guidelines, only business, industrial areas allowed

GEORGE TOWN (Aug 18): Penang will implement new guidelines for temporary worker housing within local authority administrative areas effective Sept 1, with such accommodation only permitted in commercial and industrial areas.

State Local Government and Town and Country Planning Committee chairman Jason H’ng Mooi Lye said the move aims to manage workers’ accommodation needs during the transition period as the capacity of centralised labour quarters (CLQs) in the state remains insufficient.

“CLQs are the state government’s main direction for workers’ accommodation. Temporary worker accommodation is not intended to replace CLQs, let alone create opportunities for permanent worker accommodation.

“Instead, this proposal serves as an alternative to manage the transition period until CLQ capacity is sufficient and workers’ accommodation needs can be better organised,” he said at a press conference at Komtar here on Monday.

He said the guidelines were approved at the state executive council meeting on Aug 12 and will serve as a reference for the Special Committee for Consideration and Evaluation of Worker Accommodation Applications in assessing each application based on location suitability and the stipulated control measures.

H’ng said the special committee, whose establishment was approved on May 15, comprises representatives from the Local Government Division, PLANMalaysia Penang, Penang Island City Council (MBPP), Seberang Perai City Council (MBSP), the Fire and Rescue Department and the Penang Labour Department, among others.

He said the previous guidelines for temporary labour quarters (TLQs) in local authority areas were introduced in 2024 as a temporary solution, with an approval period of three years ending Dec 31, 2027 but the state government now wants to reduce the areas where worker accommodation is permitted, particularly in residential areas.

“Local authorities frequently receive complaints from residential areas when foreign workers live next to residents’ homes and disturbances occur. That is why, over the past two years, we have begun screening applications, and under these guidelines, residential areas are not permitted, except for certain areas,” he said.

He said there are currently 1,617 permitted TLQs under the MBPP and 1,492 under the MBSP, while the number of CLQ facilities remains limited, with two facilities on the island and four in Seberang Perai.

H’ng said operators can obtain application forms from the local authorities starting Monday, with a fee of RM1,500 for each unit measuring 750 sq ft or less, while RM3,500 will be charged for units measuring 751 sq ft and above.

He said every operator is also required to obtain a permit from the PBT before applying for a certificate of accommodation from the Penang Labour Department, while occupancy density requirements will be subject to the department’s stipulations.

He said the state government also took into account the needs of small and medium enterprises, including restaurant operators and small-scale factories that face difficulties placing workers in CLQs due to distance, before finalising the new guidelines.

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