October 30, 2025 @ 2:35pm
ALOR STAR: The Kedah Chapter of the Malay Chamber of Commerce Malaysia (DPMM) has expressed concern over the Alor Star City Council’s (MBAS) plan to revise assessment tax rates, which are scheduled to take effect in 2026.
Its president, Datuk Mohd Zayad Md Ismail, said that while the chamber acknowledged the need for a reassessment after more than 33 years without any revision, the reported increase of more than 200 per cent in many cases was too steep.
He warned that such a drastic hike would not only drive up operational costs, particularly for small and medium-sized enterprises (SMEs), but could also threaten the sustainability of Alor Star’s economy.
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“When assessment tax costs surge, many SMEs may be forced to close down or relocate to areas with lower tax rates. This could eventually reduce local economic activity, depress commercial rental values, and turn Alor Star into a ‘high-cost, low-activity’ zone,” he said in a statement today.
Zayad said that while MBAS had introduced an online system to facilitate reassessments and payments, there was still a lack of clarity regarding the basis for the new valuations and the scale of the increases.
He said feedback from the business community suggested that in some cases, the increments — reaching several hundred per cent — were not in line with current economic realities.
To ensure the review is carried out fairly and sustainably, he urged the city council to defer the implementation of the new rates beyond 2026 to allow for a more comprehensive study involving property owners and entrepreneurs.
Zayad said any adjustments should be introduced gradually over a three- to five-year period, with increases tied to inflation, median income levels, and the post-pandemic economic situation.
He also called for special consideration for SMEs, micro-enterprises and low-cost rental premises, as well as valuations that reflect the actual condition, usage and zoning of each property.
He added that open consultations and engagement sessions with the business community and property owners should be held before any final decision is made, to build trust and transparency between stakeholders and the local authority.
“Urban development cannot be built on the hardship of small traders and local entrepreneurs. Economic stability, business competitiveness and community well-being must be prioritised in fiscal policies.
“We urge MBAS and the Kedah government to revisit this proposal with sincerity and to adopt an inclusive, sustainable and business-friendly approach in line with the state’s vision of a liveable city and progressive growth,” he said.
Earlier today, media reports said that local councils in Kedah had applied to the state government for approval to raise domestic property and commercial premises assessment taxes by up to 245 per cent.
State Housing, Local Government and Health Committee chairman Major (R) Mansor Zakaria confirmed the request but said the state government has yet to make a decision.
Keywords: NewsMalaysiaNstDpmmMbasConcernReviseAlor Star City CouncilAssessment Tax RatesKedah Chapter Of The Malay Chamber Of Commerce Malaysia