KPKT launches STRA pilot in Sepang to test management framework
The Housing and Local Government Ministry has partnered with the Malaysian Private Accommodation Association to pilot a management framework for short-term rental accommodation in Sepang, Selangor. The proof-of-concept project launched on Nov 6 will test registration, licensing, operational standard
PETALING JAYA (Nov 10): The Housing and Local Government Ministry (KPKT) has partnered with the Malaysian Private Accommodation Association (MySTRA) to pilot a management and regulatory framework for short-term rental accommodation (STRA) in Sepang, Selangor. The proof-of-concept project, launched on Nov 6 by Deputy Housing and Local Government Minister Datuk Aiman Athirah Sabu, will be implemented within the Sepang Municipal Council’s jurisdiction.
In a statement, KPKT stressed that the pilot does not constitute automatic approval for STRA activities or replace existing regulatory mechanisms. It will test the effectiveness of cooperation between local authorities, industry representatives and other stakeholders in real-world conditions before any approach is considered for wider implementation.
Led by KPKT through the Federal Department of Town and Country Planning (PLANMalaysia), the initiative aims to develop a more structured, practical and responsible approach to managing the growing STRA industry. The ministry said the industry’s expansion has given tourists more accommodation choices, created additional income opportunities for property owners and stimulated local economic activity, but that this growth must be balanced with the need to protect the safety, comfort and well-being of local communities.
PLANMalaysia has prepared draft STRA planning guidelines to serve as a reference for local authorities in managing and regulating these activities. KPKT said the proposed approach is intended to ensure that STRA operations are conducted responsibly, are compatible with local planning and do not adversely affect surrounding communities. It is not intended to restrict the industry or deny property owners their rights.
The collaboration is guided by the principle of “Governing Fairly, Hosting Responsibly”, reflecting the shared responsibility of government and industry to promote fair governance, responsible business practices and respect for local communities. The pilot will focus on five key areas: assessing the suitability of planning approaches including land use, environmental considerations and property characteristics; testing registration, application and licensing processes; covering operational standards and compliance including safety, cleanliness, guest management, shared facilities and community complaints; examining the use of data and digital platforms to support registration and monitoring; and identifying improvements to the draft planning guidelines, local authority procedures and related policy and legislative matters.
The initiative also supports KPKT’s broader transformation agenda to strengthen local government governance, expand digital technology adoption and improve public service delivery, in line with the KPKT Strategic Plan 2026–2030 and the National Housing Policy 2026–2035. KPKT said more structured STRA management could support the country’s tourism sector, particularly during the Visit Malaysia 2026 campaign, through greater accommodation diversity and improved professionalism among operators.
The ministry said it hopes the collaboration with MySTRA will provide a foundation for continuous improvements in local government planning and management, while developing a sustainable STRA ecosystem that balances economic growth, industry interests and community well-being.
