Malaysia’s Short-Term Rental Sector to Get Nationwide Framework
Malaysia’s short-term rental market—covering platforms like Airbnb and other Short-Term Residential Accommodation (STRA) services—is set for its first nationwide framework.
Deputy Tourism, Arts and Culture Minister Khairul Firdaus Akbar Khan announced that draft STRA guidelines, developed by the Housing and Local Government Ministry (KPKT) through PlanMalaysia, will be presented to the Cabinet soon. Once endorsed, they will move to the National Council for Local Government for final approval.
The rollout is targeted by the end of this year.
Local Authority Licence Required Before Registration
A key change for property owners:
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STRA premises must first obtain a business operating licence from the relevant local authority before they can be registered as tourist accommodation with the Ministry of Tourism, Arts and Culture (Motac).
“This is crucial, as licensing and enforcement fall under the jurisdiction of local councils,” Khairul Firdaus explained.
The move aims to give state governments and local authorities a clearer, more coordinated role in STRA regulation, balancing tourism growth with community interests.
Tourism Industry Act Amendments in the Pipeline
Motac is also preparing amendments to the Tourism Industry Act 1992, expected to be tabled either at the end of 2025 or early 2026.
The amendment process has included 54 engagement sessions with nearly 1,000 stakeholders, from ministries and NGOs to industry players in Sabah and Sarawak.
Proposed changes include:
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Improved licensing procedures for tourism operators
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Mandatory insurance protection for guests and operators
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Stronger enforcement powers for regulatory bodies
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Digital platform registration requirements for online booking sites
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Creation of a Tourism Tribunal to handle disputes
Why This Matters for Property Owners and Investors
The upcoming framework and legislative changes could have direct implications for property owners engaged in short-term rentals:
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Compliance Costs – Owners may need to invest in licensing, insurance, and facility upgrades to meet local authority requirements.
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Zoning and Restrictions – Local councils could limit STRA operations in certain residential zones.
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Professionalisation – A more regulated environment may favour full-time operators and investors who treat STRA as a structured business.
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Platform Accountability – Digital platforms could be required to verify that all listings are licensed, potentially removing unregistered properties.
Potential Impact on Malaysia’s Tourism and Real Estate
If implemented well, the STRA guidelines could:
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Boost traveller confidence in Malaysia’s short-term rental market through better safety and service standards.
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Enhance cooperation between state governments, local councils, and federal agencies.
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Increase demand for compliant, well-managed properties, especially in high-tourism areas like Kuala Lumpur, Penang, Langkawi, and Johor Bahru.
However, tighter regulations may also lead to a consolidation of operators, with casual hosts exiting the market due to compliance challenges.
Bottom Line:
Malaysia’s STRA regulations are moving toward a more structured, sustainable, and professional model. For property investors and operators, now is the time to review compliance readiness—from licensing to insurance—to stay ahead of the upcoming changes.
Stay updated on property market developments and policy changes at klproperty.cc—your source for smart property insights in Malaysia.
