The Urban Planning Division was upgraded to a department on January 1, 1985, in line with the enforcement of the Town and Country Planning Act 1976 for the entire state of Penang. Previously, it was a division under the Secretariat Department of the Penang Municipal Council.

Once again, on May 8, 1993, the Urban Planning Department changed its name to the Department of Urban Planning and Development in line with the functions and roles it played in the development of Penang.

On February 1, 2004, the MPPP Landscape Unit was transferred to the Department of Urban Planning and Development to realize the government's desire to create an administrative area of MPPP as a City in a Garden. Starting October 1, 2004, this Department of Urban Planning and Development was renamed the Department of Planning and Development.

This department is led by a Grade J52 Urban and Rural Planner Officer known as the Director of Development Planning. The restructuring of the Penang Municipal Council was implemented on October 1, 2004, by the Public Service Department (JPA), resulting in the establishment of nine (9) departments.

Currently, the Department of Planning and Development operates on Level 16 of KOMTAR, the Administrative Division on Level 11 of KOMTAR, and the OSC Unit on Level 4 of KOMTAR. Starting November 1, 2011, the MPPP Appointment Authority decided that the Landscape Unit would be absorbed and placed under the supervision of the Department of Recreation, Tourism, and International Relations.

The Penang State Authority agreed on June 25, 2010, for the Penang Municipal Council to be upgraded to the Penang Island City Council based on the provisions of Section 4(2) of the Local Government Act 1976 (Act 171). Subsequently, the Penang Municipal Council was upgraded to the Penang Island City Council on January 1, 2015. In October 2018, the Local Centre Unit (OSC) was transferred from the Department of Planning and Development and placed under the Mayor's Unit of MBPP.

1. Carries out the provisions under the Town and Country Planning Act 1976 and other related planning and development acts.

2. Prepare local plans and other plans while formulating policies and guidelines for the control of land development and use, development planning, and urban maintenance purposes.

3. Process applications for planning permission, land subdivision, land use and building change, and more.

4. Collect and analyze data, conduct studies and research related to planning, development control, and maintenance, and plan and monitor the council's development projects.

5. Provide concept plans and development plans for council-owned lands.

DEVELOPMENT PLANNING DIVISION

1. Assist the State JPBD in the preparation of the Penang State Structure Plan.

2. Provide Local Plans as stipulated by Act 172.

3. Conduct building conversion and redevelopment studies as directed from time to time.

4. Provide and periodically review guidelines as directed.

5. Offer planning advice to developers and the public.

6. Provide reports and statistical information and data related to Planning Permissions and Development Planning.

7. Undertake planning studies and research.

8. Enforce actions under the Town and Country Planning Act 1976 (Act 172).

9. Conduct planning reviews on applications for business licenses, industries, and advertising boards in the administrative area of the Penang Island City Council.

DEVELOPMENT CONTROL DIVISION

1. Process planning permission applications.

2. Prepare report papers for Committee Meetings.

3. Process subdivision/amalgamation applications.

4. Prepare reports for departmental meetings.

5. Provide reviews on building plans.

6. Issue certificates for land-related matters.

PROJECT RESEARCH / GIS DIVISION

1. Prepare, coordinate, and manage the department's geospatial infrastructure and information.

2. Compile and coordinate statistical data based on planning permission applications for planning purposes.

3. Provide statistical information related to development pressures for internal departmental records and relevant parties.

4. Conduct research, studies, and data analysis in various planning categories.

5. Research, evaluate, plan, coordinate, and align projects related to Urban Well-being, Local Agenda 21, and Murninet.

6. Prepare and coordinate the production of departmental reports, meeting papers, and presentations for presentation at Council, State, Federal, and statutory/private body meetings.

7. Coordinate responses to State Assembly questions for the department and all feedback from Federal, State, and Council meetings.

ADMINISTRATION DIVISION

1. Manage employee data input in the HRMIS system, record service details in the Service Record Book (courses/training/seminars/workshops, examinations, leave), verification, options, appointments, and retirements.

2. Manage departmental files and personal files, record keeping, filing rooms, and file/record movements.

3. Maintain departmental asset management, office equipment, inventory requirements, and manage departmental acquisitions, stationery inventory supplies, and departmental vehicle management.

4. Supervise departmental financial management, annual budget applications, staff salary and allowance management, departmental expenses through allocated votes, process invoices, vouchers, and bills, record purchases, and monitor the Financial System.

5. Supervise the receipt and dispatch of departmental correspondence/memos, postal matters/objection notices, circular distribution, and assist in the implementation of departmental operational activities (correspondence, briefings, visits, discussions).

6. Supervise compliance with office regulations, monitor employee attendance records, disciplinary and regulatory affairs, employee/office welfare, and safety.

7. Supervise the preparation of Annual Performance Reports, Annual Work Objectives, preparation of appointment/organizational/data/statistics/audit feedback, and the implementation of Council/Government regulations.

1. Development Control Division

   1. Process planning permission applications.

   2. Process applications for subdivision/amalgamation.

   3. Provide reviews of building plans.

   4. Issue certificates for land matters applications.

   5. Undertake enforcement actions as provided for by Act 172.

2. Development Planning Division

   1. Assist the State Department of Town and Country Planning in preparing the State Structure Plan for Penang.

   2. Prepare local plans as provided for by Act 172.

   3. Conduct studies on building conversions and environmental upgrades as directed.

   4. Prepare and review guidelines periodically as directed.

3. Project Research/GIS Division

   1. Prepare, coordinate, and manage the department's geospatial infrastructure and information.

   2. Prepare and coordinate statistical data based on planning permission requests for planning purposes.

   3. Conduct planning studies for Council-owned land development proposals.

   4. Review and verify technical reviews for Council license applications.

1. Applications for Planning Permission, Whether Simultaneous or Separate, Will Be Processed and Decided Within (108) Days.

2. Applications for Approval of Subdivision Plans, Transfer, and Reacquisition Will Be Processed and Decided Within (2) Months.

3. Applications for Extension of Planning Permission Applications Shall Be Considered, and Decisions Shall Be Issued Within 2 Months.

4. Technical Reviews/Opinions Shall Be Submitted Within Forty (40) Days.

5. Prepare Payment Vouchers and Submit Them to the Treasury Department Within Seven (7) Days From the Date of Receipt.

6. Complaints Received Will Be Addressed Within Two (2) Working Days, and a Response Will Be Provided Within Three (3) Working Days From the Date of Receipt of the Complaint.

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