Penang: Penang will implement new guidelines for temporary worker housing within local authority administrative areas effective September 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 stated that this move aims to manage workers' accommodation needs during the transition period as the capacity of Centralised Labour Quarters (CLQ) in the state remains insufficient.
According to BERNAMA News Agency, CLQ is the state government's main direction for workers' accommodation. Temporary worker accommodation is not intended to replace CLQ, 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.
The guidelines were approved at the State Executive Council meeting on August 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. The special committee, established 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.
The previous guidelines for temporary labour quarters (TLQ) in local authority areas were introduced in 2024 as a temporary solution, with an approval period ending December 31, 2027. However, the state government now aims 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. As a result, over the past two years, applications have been screened, and under these guidelines, residential areas are not permitted, except for certain areas.
Currently, there are 1,617 permitted TLQs under MBPP and 1,492 under MBSP, while the number of CLQ facilities remains limited, with two facilities on the island and four in Seberang Perai. Operators can obtain application forms from the local authorities starting today, with a fee of RM1,500 for units measuring 750 square feet or less, while RM3,500 will be charged for units measuring 751 square feet and above. 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.
The state government also considered 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.