Why are international schools excluded from the nominal quit rent rate?

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International Schools Excluded from Nominal Quit Rent Rate Due to Business Classification

International schools are not eligible for the nominal RM50 quit rent rate in Penang because they are classified as businesses and are therefore subject to the standard quit rent charges. This distinction means they will be required to pay the usual rates applicable to commercial entities, rather than the concessionary rate offered to other types of schools.
Business Classification Dictates Standard Rates

The Penang state government has explicitly stated that international schools are considered businesses. This classification is the primary reason for their exclusion from the nominal RM50 quit rent rate that has been established for other schools within the state. Consequently, these institutions will be assessed and charged quit rent according to the standard rates applicable to commercial properties.
Standard Rates Apply to Business Operations

Unlike national and state schools, which benefit from the reduced RM50 quit rent per lot, international schools fall outside this provision. The decision underscores a policy of distinguishing between educational institutions operating as non-profit entities or public services and those functioning as commercial enterprises. As such, the financial obligations for international schools regarding quit rent align with those of other businesses operating within Penang.
Previous Quit Rent Practices

Historically, quit rent rates for schools were aligned with those for residential buildings. The state had previously granted nominal rates, sometimes as low as RM1, upon appeal. However, the new policy specifically targets a RM50 nominal rate for all schools, with a clear exemption for international schools based on their business nature.

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Why are international schools excluded from the nominal quit rent rate?

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