Malaysia's proposed 180-night rental cap could shrink long-stay nomad options

What the draft rules would change

Malaysia plans national rules for short-term rental accommodation. Right now, rules differ from state to state. Under the draft, a short-stay home could only operate legally if it's registered and meets local authority licensing rules. The Ministry of Housing and Local Government is still assessing a proposed limit of 180 rental nights a year. Deputy Housing and Local Government Minister Aiman Athirah Sabu set out the plan in parliament Oct. 26.

The guidelines cover registration, safety, cleanliness, how operators run their units and what they owe the local community. Condos and other strata buildings would still follow their own management bodies' by-laws. The government also wants booking platforms to check a unit's licence automatically before it's listed. Platforms would have to delist units that are unlicensed or break the rules.

Still a draft, with no start date

The rules aren't in force. The ministry is waiting for input from the Tourism, Arts and Culture Ministry before sending the guidelines back to the Cabinet. After that, the National Council for Local Government has to agree to them and then each state and local authority has to adopt them.

No date has been set. On the cap, the deputy minister said any limit must weigh owners' rental income and the needs of the tourism industry against public safety and residents' well-being.

Penang already has its own rules. Its private accommodation by-laws took effect Aug. 1, 2026. Amendments starting Jan. 1, 2027, set a fixed annual licence fee of RM500 per unit. In Selangor, a separate state proposal for a 180-night cap was still under review in January.

What nomads who book short stays should watch

The cap and the licence rules apply to property operators, not to guests. Nothing changes yet for visitors, DE Rantau Nomad Pass holders or anyone renting on a standard long-term lease. The effect on nomads would be indirect.

If unlicensed units are delisted and licensed ones can only be rented for 180 nights a year, there would be fewer short-stay homes on booking platforms.

That matters most for nomads who stay for months in Kuala Lumpur, Penang or other cities by booking one platform listing after another. Before booking long stays in Penang from 2027, it's worth checking that the host holds a local licence. It's also worth budgeting for a conventional tenancy as a backup. More on rentals and visas is in our Malaysia guide.