Latest news with #STRA
New Straits Times
7 days ago
- Business
- New Straits Times
Short-term rental rules under review to protect consumers
KUALA LUMPUR: The Tourism, Arts and Culture Ministry (Motac) and the Housing and Local Government Ministry (KPKT) are currently in the process of reviewing the planning guidelines for Short-Term Rental Accommodation (STRA). Its deputy minister, Khairul Firdaus Akbar Khan, said the review incorporates input from various stakeholders and aims to develop an appropriate and effective mechanism for monitoring service quality within the STRA ecosystem. "To address issues related to STRA, KPKT, through the Town and Country Planning Department, has developed the planning guidelines as a reference for all local authorities across Malaysia. "The guidelines outline several regulatory aspects for STRA hosts, including the categories of residential premises allowed, requirements for registration and licensing, safety considerations, duration of stay, and enforcement actions. "Since the regulation of tourist accommodation premises falls under the jurisdiction of state governments and is administered by their respective local authorities, Motac and KPKT are currently reviewing the STRA planning guidelines," Khairul told the New Straits Times today. He said the Penang government and the Petaling Jaya City Council are among the local authorities that have taken proactive steps in regulating STRA, and they could serve as models for other states in Malaysia. STRA refers to the rental of residential properties — such as apartments, condominiums, or houses — for short-term stays, typically of less than 30 days. On June 3, Malaysian Budget and Business Hotel Association president Dr Sri Ganesh Michiel had urged the government to address the issue of unregulated STRA and the unlicensed sale of lodging options through online travel agencies (OTAs) and social media platforms. Ganesh said five key issues stem from the lack of regulatory oversight, including safety risks to tourists due to non-compliance with fire safety and health standards, as well as disturbances to residential communities caused by unchecked transient occupancy. Other concerns include loss of tax revenue for local councils and the federal government, distorted market pricing, disadvantageous law-abiding hotel operators, and weak consumer protection, leaving tourists vulnerable to scams and unsafe premises.
New Straits Times
03-06-2025
- Business
- New Straits Times
Govt urged to address unlicensed lodging or risk Visit Malaysia Year 2026's integrity
KUALA LUMPUR: The government has been urged to address the issue of unregulated short-term rental accommodations (STRA) and the unlicensed sale of lodging options through online travel agencies (OTAs) and social media platforms. Malaysian Budget and Business Hotel Association president Dr Sri Ganesh Michiel warned that failure to act immediately could jeopardise the integrity, sustainability and overall success of Visit Malaysia Year 2026 (VMY 2026). "The presence of unlicensed and unregulated STRA units, including apartments, condominiums and private residences converted into transient lodging, has created a parallel and illegal accommodation economy. "These entities operate outside any legal framework, do not pay licensing fees or taxes, are not subject to safety inspections, and undermine legitimate hoteliers and tourism players who have invested significantly in complying with national and local laws and regulations," he said in a statement yesterday. Ganesh said five key issues stem from the lack of regulatory oversight, including safety risks to tourists due to non-compliance with fire safety and health standards, as well as disturbances to residential communities caused by unchecked transient occupancy. Other concerns include loss of tax revenue for local councils and the federal government, distorted market pricing, disadvantageous law-abiding hotel operators and weak consumer protection, leaving tourists vulnerable to scams and unsafe premises. He said despite multiple complaints and discussions, unlicensed accommodations continue to be openly promoted and transacted online, including via major OTAs, classified sites and increasingly on social media platforms. Ganesh said MyBHA is calling for the setting-up of a high-level inter-ministerial task force led by the Housing and Local Government Ministry and Tourism, Arts and Culture Ministry to introduce and enforce immediate regulations for all short-term rental accommodations. "This includes empowering local authorities to consistently and firmly enforce regulations and laws without negatively impacting licensed and registered hotel businesses and establishing minimum safety and operating standards for all accommodation providers," he said. Ganesh also wants the Digital Ministry and Communications Ministry to hold digital platforms and OTAs accountable for listings published on their portals, and enforce legal responsibilities for verifying licensing status before allowing listings. He also proposed the introduction of digital governance standards and penalties for platforms that facilitate illegal accommodation listings, including measures to prevent social media from becoming black markets for unlicensed stays, such as blacklisting, banning, and removing non-compliant (non-hotel) properties from digital platforms.
Daily Express
10-05-2025
- Business
- Daily Express
Action on illegal lodgings hailed: Budget hotels also want fee move reviewed
Published on: Saturday, May 10, 2025 Published on: Sat, May 10, 2025 Text Size: 'While tourist numbers are up, hotel receipts are down. This might be due to tourists staying at unregulated STRA units, which don't contribute to the economy through licensing or taxes,' Ong (3rd from right) said. Kota Kinabalu: The Sabah chapter of the Malaysia Budget & Business Hotel Association (MyBHA) commended City Hall for its recent crackdown on 207 illegal STRA (Short Term Rental Accommodation) operators and urged for a statewide expansion of enforcement. 'We hope the government sustains this momentum and take a page from Penang's proactive STRA regulation efforts,' said its Chairman, James Ong Kim Loke. There is concern that unregulated STRA platforms may be contributing to lower hotel revenues, despite rising tourist arrivals. 'While tourist numbers are up, hotel receipts are down. This might be due to tourists staying at unregulated STRA units, which don't contribute to the economy through licensing or taxes,' Ong said. He also urged the State Government to intervene in City Hall's (DBKK) decision to revert to the original hotel licensing fee structure, calling it outdated and unsustainable. He said the licensing fees, calculated based on the number of occupied rooms per night, unfairly burden hotel operators and contradict the principle that such fees should be fixed operational expenses. 'This by-law is not cast in stone and can be overridden if the will is there. It is not right to charge guests indirectly through a fluctuating licensing fee. 'It penalises hotels for doing better,' said Ong. He added that MyBHA members had two meetings with DBKK last year, but the sessions were largely one-sided. 'We were just informed the old directive from 1989 allowing RM10 per room per year would be lifted by January 1, 2025. It gave the impression that it was non-negotiable.' Ong said some hotels have yet to pay the new 2025 licensing fees, pending the outcome of MyBHA's request for an urgent meeting with DBKK on the matter. He said Melaka and Penang imposed fixed business licence and signage fees while revenue from heritage tax is transparently managed and reinvested in tourism. He criticised DBKK's method of charging licensing fees as a revenue-based model, calling it an unpredictable and punitive fluctuating tax. A second-class 100-room hotel operating at 60 percent occupancy, he explained, would face a licensing fee of RM4,800 per month amounting to RM57,600 annually. 'This is just too much for small players like us. Why single us out? Are hotel operators the only ones occupying Kota Kinabalu City?' he said. He warned that unless changes are made, hotel operators may be forced to raise room rates, making them less competitive and giving more ground to illegal operators. MyBHA Sabah also hopes to seek an audience with Datuk Seri Panglima Masidi Manjun, the state's Finance Minister and former Minister of Tourism. 'He should understand our predicament better. Our members are doing their best to run viable businesses. We just want fair governance and a conducive environment to survive in 2025.' * Follow us on Instagram and join our Telegram and/or WhatsApp channel(s) for the latest news you don't want to miss. * Do you have access to the Daily Express e-paper and online exclusive news? Check out subscription plans available. Stay up-to-date by following Daily Express's Telegram channel. Daily Express Malaysia
The Star
03-05-2025
- Business
- The Star
Tanzania, Malawi end trade standoff after diplomatic talks
DAR ES SALAAM, May 3 (Xinhua) -- Tanzania and Malawi on Friday ended their trade standoff after bilateral discussions that reaffirmed a shared commitment to strengthening trade, fostering economic cooperation, and resolving existing issues. A jointly-signed communique issued on Friday after a bilateral meeting between senior officials of the two countries said they agreed to lift trade restrictions, pledging to finalize legal frameworks required for the signing of the Simplified Trade Regime Agreement (STRA). Both delegations reaffirmed their commitment to finalizing the relevant legal framework for the STRA and to implementing it upon completion of domestic legal processes by May 30, said the communique signed by Tanzanian Minister of Foreign Affairs and East African Cooperation Mahmoud Thabit Kombo and Malawian Minister of Foreign Affairs Nancy Gladys Tembo. According to the communique, Malawi appreciated Tanzania's decision to lift the import ban on plant and plant products from Malawi, which Tanzania imposed on April 23. In reciprocity, the government of Malawi committed to issuing an administrative instrument to the relevant authorities to facilitate imports and exports between the two countries, with effect from the date of this communique, said the communique. Tensions began in March after Malawi imposed restrictions on selected agricultural produce from Tanzania, escalating in April when Tanzania implemented reciprocal measures. Tanzania also imposed similar restrictions on South Africa, which had blocked agricultural imports from Tanzania. However, in a public notice issued on April 25, Tanzanian Minister of Agriculture Hussein Bashe confirmed that the restrictions had been suspended, effective April 23. The ban was officially lifted on April 26 following diplomatic overtures from Malawi and South Africa, aimed at fostering dialogue and strengthening cooperation.
The Star
21-04-2025
- Business
- The Star
Sleepless nights for weary neighbours
FOR over two years, CK Hong a resident of Taman Seputeh, Kuala Lumpur, endured relentless disturbances from his neighbour's double-storey link house that was rented out as a short-term rental accommodation (STRA) to groups of tourists and families. He witnessed wedding ceremonies, late night parties, and even film crews conducting shoots in the early hours of the morning. Hong complains of sleepless nights due to noise from a neighbouring house run as a homestay. 'Several residents lodged complaints with the authorities through our Taman Seputeh Residents Association (RA) regarding the noise from that house,' said Hong. 'The occupants were given stern warnings by Kuala Lumpur City Hall (DBKL) and the police. 'However, once a new group checks in, the same problem recurs. 'My worst experience was in July last year when a film crew blocked the entrance to my house.' Over time, Hong observed entire busloads of guests arriving at the property for short stays. He is now at his wits' end dealing with the constant disruptions, especially when groups of 10 to 15 people gather at the house next door. In a separate case, an Airbnb (online marketplace for short-and-long-term homestay) operator, who declined to be named, told StarMetro that the management of a condominium in Bukit Bintang had imposed a RM50,000 security deposit on STRA operators. 'The condominium permits Airbnb operations and all of us have registered with the management accordingly. 'While the steep deposit may be reasonable for large-scale operators who own over 10 units, it is unfair and burdensome for small-scale operators with few or one unit. 'We pay a fixed monthly rental to the unit owners and cover the cost regardless of occupancy, which is already a major challenge,' she said. According to the operator, the security deposit requirement was only introduced during the first meeting between the management and Airbnb operators. A memo by the management, provided to StarMetro, stated that damage to common facilities, blocked plumbing and security concerns were reasons for implementing the policy. Despite the contrasting nature of these two cases, one involving a landed premises and the other a strata property, the challenges are indicative of wider issues faced by Kuala Lumpur residents living next to STRA units. Although DBKL has an existing standard operating procedure (SOP) for tourist accommodation, stakeholders are calling for comprehensive guidelines to regulate STRA use across both landed and strata properties. They want a more solid regulation to keep STRA in check for different properties and called for enforcement action should operators fail to comply with the existing laws. The management body of condominiums and high-rise residence can determine whether their strata properties can be used for STRA. Regulatory framework In response to the problems concerning STRA, DBKL said in a statement that STRA fell under Class A9: Tourist Accommoda-tion, as outlined in the Draft Kuala Lumpur Local Plan 2040. 'The operation of STRA is subject to designated land use zones. 'It is permitted or conditionally permitted on lots under the primary land use categories of commercial, mixed development and institutional. 'For lots designated under the primary residential land use zone, its operation is only permitted, subject to conditions and only within identified village areas. 'In strata-titled properties, STRA activities may only proceed with approval from the management body and must comply with the by-laws or house rules, which must be adopted through an Annual General Meeting (AGM) or Extraordinary General Meeting (EGM). 'Any amendments to the by-laws must also be filed with the Commissioner of Buildings Kuala Lumpur (COBKL), in accordance with Section 32(6) of the Strata Management Act 2013 (Act 757),' DBKL said. It added that COBKL had established an SOP as a guide for developers, joint management bodies (JMB) and management corporations (MC) in Kuala Lumpur. 'This SOP covers areas such as safety, emergency access, use of common property and insurance policies to ensure the safe and orderly operation of STRA. 'DBKL remains committed to ensuring STRA activities are carried out in a regulated manner without compromising residents' well-being and in accordance with existing laws and procedures.' Prevailing problem Chong says the issue on STRA in strata properties is bound by the Strata Management Act 2013. Strata Owners Association Malaysia (SOAM) honorary secretary Kelvin Chong said STRA in private and strata properties remained an ongoing issue affecting high-rise communities. 'We've received numerous complaints about STRA at highrise buildings on STRA issues, especially when it started affecting other residents. 'There are about 30 complaints lodged with us this year excluding inquiries on STRA raised during the building's management meeting. 'However, whether to allow such operations ultimately lies with the respective MCs or JMBs. 'While the Strata Management (Maintenance and Management) Regulations 2015 do not explicitly permit or prohibit STRA, it is governed by the house rules or by-laws adopted by the MC.' Chong said the Strata Management Act 2013 did not differentiate between land use types for high-rise residences. Any property with a strata title is bound by the same rules. 'This means that whether the condominium is built on residential or mixed commercial land, it is still subject to the by-laws adopted by the MC,' he said. While this structure has its advantages, Chong noted it also has downsides. 'The benefit is that management bodies can better regulate STRA operators and impose penalties for damage or nuisance. 'Maybe an appropriate amount of RM100 or RM200 deposit per night can be collected by the MC from the operator. 'Allowing STRA can also help raise property value and boost the local economy,' he said. However, Chong warned that problems might arise if a new JMB or MC committee decided to reverse a previous decision. 'For example, if a new committee vetoes the move to allow STRA, operators may be forced to shut down and forfeit their investments in renovations,' he said. Chong urged the Housing and Local Government Ministry (KPKT) to introduce national guidelines on STRA to protect community harmony. 'COB should also assist high-rise management teams in resolving disputes related to STRA to promote a more harmonious living environment,' he added. The management body of condominiums and high-rise residence can determine whether their strata properties can be used for STRA. Legal matters KPKT, when contacted, said it was working with the Tourism, Arts and Culture Ministry (Motac) to draft STRA guidelines for Cabinet approval. However, Motac did not respond as at press time. The Star on Nov 25 last year reported Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi saying that the upcoming STRA guidelines aimed to ensure legal compliance, streamline licensing and address issues such as noise, lack of parking spaces, waste disposal and misuse of shared facilities. On Jan 20, 2023, Bernama reported that all operators must register their STRA properties with Motac as required under the Tourism Industry Act 1992 (Act 482), in an effort to control the increasing number of residential homes being converted into homestays. In the absence of federal guidelines, some local authorities have implemented their own measures. For instance, on May 30, 2023, a local daily reported that the Penang Island City Council banned all forms of STRA in residential units on the island, except for commercial properties such as serviced apartments and various types of office suites.
