Attention: Malaysia tightens regulations on Airbnb!
- Erik & Aya
- 7 days ago
- 2 min read
Image is for illustration purposes only.
Moves to Tighten Airbnb Regulations and Economic Impact Report – What to Watch Next
In 2025, Malaysia is moving toward tightening regulations on short-term residential accommodations (STRA), including platforms like Airbnb.At the same time, Airbnb has drawn attention by releasing a new report highlighting its contributions to the Malaysian economy.
In this article, we present the latest developments in Malaysia's Airbnb landscape from two perspectives: the government's regulatory direction and Airbnb’s response.
1. Government: Licensing system to be introduced for Airbnb-style accommodations (July 2025)
In July 2025, Malaysia's Deputy Minister of Tourism, Arts and Culture announced in Parliament that new guidelines for Short-Term Residential Accommodation (STRA) are expected to be introduced by the end of the year.
The main points of the guideline include:
STRA properties such as those listed on Airbnb must obtain a business license from the local authority before they can be registered as tourism accommodation.
Local authorities will be responsible for regulating and enforcing the rules.
At the same time, amendments to the Tourism Industry Act 1992 are expected to be tabled in Parliament between the end of 2025 and early 2026. These amendments will cover licensing procedures, insurance, platform registration, and the establishment of a tourism court.
This indicates a clear move toward stricter regulation of short-term rental services like Airbnb.
2. Airbnb: Emphasizing its Economic Contribution to Malaysia (May 2025)
Meanwhile, in May 2025, Airbnb released an economic impact report conducted by Oxford Economics (report likely commissioned or supported by Airbnb).
Key findings include:
Economic impact in 2024: RM9.2 billion
Job creation: 93,600 jobs, with total wages amounting to RM2.1 billion
67% of guests were domestic travelers, contributing directly to the local economy
Guest spending totaled RM11 billion (including food, transport, retail, entertainment, etc.)
62% of total spending occurred outside urban areas, showing significant impact on rural economies
The report highlights Airbnb’s positive contributions not only to tourism, but also to sectors such as manufacturing, transportation, wholesale and retail, and food and beverage.
3. Balancing Regulation and Growth — Key Points to Watch
These two developments highlight the ongoing challenge of how to integrate sharing economy-based accommodation services like Airbnb into a regulatory framework.
The government sees the need for a proper system to ensure healthy tourism growth, public safety, and local governance,while Airbnb emphasizes its contributions to the local economy and tourism recovery, seemingly advocating for a more flexible approach.
Conclusion
As the official guidelines and amendments to the Tourism Industry Act move forward, there could be significant impacts on Airbnb hosts and travelers in Malaysia.
Although the specific details of the system have yet to be finalized, it will be important to continue monitoring how the balance between regulation and economic benefits is struck, and what kind of framework will ultimately be established.
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📚 Sources
New Straits Times-”New rules coming for Airbnb-style stays”（ July 30, 2025）
Business Times (New Straits Times)-”Airbnb injects RM9.2bil into Malaysian economy in 2024, driving RM2.1bil in wages”（ August 7, 2025）
