26/08/2026
RM1,800 TIP Fee โ what exactly are we paying for?
One point that has caused a lot of confusion under Penangโs new 2026 TIP framework is the difference between the RM1,000 licence fee and the RM1,800 TIP fee.
They are not the same charge.
Under the current fee schedule:
โข RM50 โ application / administrative fee
โข RM1,000 per year โ licence fee for the stated 3-room-and-below category
โข RM1,800 per year per unit โ Private Accommodation (TIP) fee
The RM1,800 is therefore a separate annual TIP charge, not another name for the licence fee.
Based on the explanation we received from MBPP Pelesenan, conventional accommodation has a room-night reporting mechanism, while TIP does not operate under the same data structure. The TIP charge is therefore implemented as a fixed annual amount per unit.
Important distinction: the RM1,800 fee itself is stated in the 2026 By-Laws; the explanation above refers to the implementation rationale communicated to us.
For owners and operators, the bigger question is not simply โIs RM1,800 expensive?โ
The more useful question is:
What is the full annual compliance and operating cost of this unit?
For some strata properties, building-level JMB / MC charges may also apply separately.
Weโll break that down in the next update.
