MCA: 'Smart Parking System should not harm but protect local govt authorities, Malaysian citizens'

Focus Malaysia

a day ago

AN MCA leader has expressed concern over the recent decision by the Selangor state government to implement the Smart Intelligent Parking (SIP) system across four local councils starting Aug 1, saying the approach, aimed at addressing the issue of low parking fee collection, appears to have been poorly thought through.
Its vice president Datuk Lawrence Low said this in response to Selangor local government and tourism committee chairman Datuk Ng Suee Lim's announcement of the concession deal during the Selangor state assembly sitting last week.
Ng had said that the state was implementing the SIP system to modernise on-street parking using Internet of Things (IoT) technology, allowing local councils to focus on other duties.
The agreement, signed in March, involves four local councils, Petaling Jaya City Council (MBPJ), Subang Jaya City Council (MBSJ), Selayang Municipal Council (MPS) and Shah Alam City Council (MBSA).
'(Ng) stated that the privatisation is part of the state's strategy to combat the low parking collection rate, which currently stands at only 30 per cent across 1,000 designated parking bays,' said Low.
'However, the pressing question remains: why hasn't the state government tackled the underlying issues within the local government authorities (PBT)?
'There are various avenues to explore, such as improving mobile applications, strengthening enforcement, offering staff incentives, or even revising local PBT regulations.'
Low cautioned that while privatisation may seem like a quick fix, it comes at a significant cost, whereby local PBTs are now required to share 50% of their revenue with the SIP operator Rantaian Mesra Sdn Bhd.
'This revenue is crucial for PBTs and, ultimately, for the welfare of the community,' he argued.
'Two local associations, PJ Sejahtera and the Sustainable Petaling Jaya Association, have raised concerns that MBPJ could lose up to RM10 mil annually due to the implementation of SIP.
'Will Ng take full responsibility for this loss? Who truly stands to benefit from this decision; the public, or political insiders?'
Calling for the state government to urgently conduct a thorough review of the situation, Low said any necessary changes, including amending or even cancelling the concession, should be made to protect PBT revenues and ensure the wellbeing of the community.
Under the new arrangement, 50% of parking revenue will be allocated to the concessionaire, while the remaining 50% will go to the state government.
Of the state's portion, 40% will be distributed to the local councils involved, with the remaining 10% directed to Menteri Besar Selangor Incorporated (MBI). ‒ July 15, 2025
Main image: Carz Automedia Malaysia