SIP: Operator Selection Made Through Open Tender Involving 26 Companies - Selangor MB

SHAH ALAM, July 15 (Bernama) -- Selangor Menteri Besar Datuk Seri Amirudin Shari has once again emphasised that the appointment of Rantaian Mesra Sdn Bhd as the operator to handle the implementation of the Smart Intelligent Parking System (SIP) was made through an open tender.

He said the appointment of the company by the Selangor Menteri Besar (Incorporated) or MBI was made after the Request for Proposal (RFP) was issued and a proper evaluation was conducted involving 26 interested companies.

“Upon receiving the applications, the MBI then conducted a proper verification or screening process and submitted the list of eligible candidates to the state government.

“MBI prioritises the state's interests at the forefront and does not hand over control in its entirety to any party,” he said after the 2025 Selangor Platform Strategic Partner Synergy and Appreciation Ceremony (PLATS) here today.

The menteri besar was addressing concerns raised on the legality of privatising public car parks, whether privatisation is allowed (under the Road Transport Act 1987) as public car parks are under the jurisdiction of the Ministry of Transport and local councils (PBT) are delegated to manage, enforce and collect parking fees, under Section 72 of the Road Transport Act 1987.

Previously, the media reported that the SIP is to streamline the parking fee collection system across all local authorities to be more systematic and efficient in line with the Smart Selangor initiative.

The first phase, which begins on Aug 1, involves four local authorities, namely Petaling Jaya City Council (MBPJ), Subang Jaya City Council (MBSJ), Shah Alam City Council (MBSA) and Selayang Municipal Council (MPS).

Among the main objectives of the implementation of the system is to raise parking fee compliance, which is currently only around a weak 30 per cent, as well as reduce issues such as double parking and lack of enforcement.

The collection proceeds will be divided by 40 per cent to the PBT, 10 per cent to MBI and 50 per cent to the concessionaire company, which handles parking fee collection and enforcement.

Regarding the percentage of collection, Amirudin said the matter could be discussed again with the concessionaire company and the PBT involved, taking into account the high costs incurred by the appointed company in providing facilities, including CCTV (closed-circuit television).

“The percentage of collection could be re-negotiated, but it is worth noting that the (tender) process was not a direct negotiation because 26 other companies were also evaluated before the selection was made," he said.

-- BERNAMA