Outsourcing Parking Is Not New In Selangor - Exco

SHAH ALAM, July 15 (Bernama) -- Parking management through a concessionaire has been in use in Selangor since 1996 and as of June, five local authorities (PBTs) still outsourced parking management to concessionaires, says State Local Government and Tourism Committee chairman Datuk Ng Suee Lim.

Ng said the implementation of concessionary parking management, which will be signed and enforced on Aug 1, will improve the existing system.

"This (privatisation) has its pros and cons, so this time the state is ensuring a win-win situation by adopting the approach of using Smart Intelligent Parking (SIP), with the Menteri Besar Selangor Incorporated or Selangor MBI playing a role in parking management," he said at his office at the Selangor State Secretariat Building (SUK) today.

Ng said the decision to implement the management system stemmed from the 33rd/2024 State Executive Council Meeting (MMKN) which convened on Nov 28, 2024, and was confirmed in the 34th/2024 MMKN on Dec 6, 2024.

“The Selangor government agreed in principle to implement parking management (TLK) through a collaboration between the Selangor MBI and private companies.

“Then the 12th/MMKN 2025 on April 23, 2025, confirmed by the 13th/MMKN 2025 on April 30, 2025, agreed that a wholly owned subsidiary under the MBI Group, namely Rantaian Mesra Sdn Bhd, be appointed to implement the Smart TLK management in the state of Selangor,” he said.

Meanwhile, Ng said the Smart Parking model would involve a tripartite collaboration between the local authority (PBT) as the body determining policy, payment rates and parking zones, Rantaian Mesra as the system coordinator responsible for technical reporting, and the concessionaire appointed.

"This implementation will be formalised through a tripartite agreement between the specific PBT, the concessionaire and Rantaian Mesa Sdn. Bhd to define clearly each party’s role, scope and responsibility that comply with the prescribed governance," he said.

Ng said the concessionaire would invest RM200 million for the Smart Parking Infrastructure, including the installation of 1,800 closed-circuit cameras in the four PBTs involved in the first phase.

Meanwhile, he said enforcement remained under the jurisdiction of the PBT as provided for in the Road Transport Act 1987 (Act 333) and the Local Government Act 1976 (Act 171).

He explained that the concessionaire was only responsible for system maintenance, payment of staff salaries (emoluments) while all enforcement action, including the issuing of compound notices, would still be carried out by PBT officers.

Ng said the PBTs would not bear any operating costs but were expected to receive higher collections.

-- BERNAMA