MBPJ enforcement officer issuing a parking compound in Jalan Kilang 51/205, off Jalan Tandang. — MUHAMAD SHAHRIL ROSLI/The Star
PETALING Jaya City Council (MBPJ) is holding firm to its refusal to sign Selangor’s parking privatisation deal until all uncertainties are resolved, including a guarantee that its revenue will not fall below current levels.
Mayor Mohamad Zahri Samingon said MBPJ’s parking revenue, which stood at RM13.8mil annually, was the highest among local councils in Selangor.
The city council needed assurance that earnings would not decline under the new scheme, he said.
“Privatisation usually occurs when councils face financial difficulties, but our revenue is exemplary,” he said in an exclusive interview with StarMetro.
“For us to adopt any new system, it is critical to secure or surpass our current income,” he reiterated.
MBPJ’s cautious approach is influenced by past experiences, particularly with a previous operator which owes over RM7mil in unpaid fees.
The operator, which signed a 20-year concession in August 1999, had its contract terminated in 2017.
“We have learned from past mistakes; clear terms on revenue, enforcement and accountability are essential,” Mohamad Zahri emphasised.
SIP has been implemented in areas under three local councils, including Selayang Municipal Council, since Aug 1. — Filepic
SIP sparks controversy
Selangor Intelligent Parking (SIP) system was announced earlier this year to centralise on-street parking management in four local authorities – MBPJ, Subang Jaya City Council (MBSJ), Shah Alam City Council (MBSA) and Selayang Municipal Council (MPS).
Under the model, the concessionaire – Selmax Sdn Bhd – is expected to invest RM200mil into smart parking infrastructure, including installation of approximately 1,800 closed-circuit TV (CCTV) cameras at key parking areas under the four local councils during the first phase.
SIP kicked off on Aug 1 but the roll-out has been slow following mounting opposition from councillors, residents and elected representatives concerned about the possible increase in parking rates, lack of communication transparency, and its impact on ratepayers.
Under the plan, revenue from parking fees will be split, with 50% going to the concessionaire, 40% to the local councils and 10% to Menteri Besar Selangor Incorporated (MBI), the state’s investment arm which awarded the contract.
So far, MBSJ, MBSA and MPS have gone ahead with the system, with Petaling Jaya being the only holdout.
Mohamad Zahri said MBPJ had attended four briefings with MBI and was preparing for a fifth on Sept 25, which will involve councillors.
“We must review the formula for enforcement officers,” he said, referencing MBI’s request for personnel numbering 70.
“Our officers manage more than just parking; they are also involved in other enforcement duties, including the Pantas (fast action) squad.
“We want to revert to the original formula of 50 officers.”
The mayor is also wary of the concessionaire’s promises to reduce manpower by using artificial intelligence (AI), pending confirmation of a comprehensive installation schedule for CCTV and related systems as part of SIP.
“All details must be clearly stated in the contract, to prevent accountability issues later,” he stressed.
Protecting the coffers
Since assuming control of parking operations in 2019, MBPJ has experienced consistent growth, with revenue increasing by approximately RM2mil annually.
In 2024, parking fees generated RM13.8mil, supplemented by RM5mil in compounds.
By July this year, parking revenue reached RM6.1mil, with fines contributing RM3.4mil by August.
“The SIP takeover poses implications for MBPJ’s revenue, as the state allocates only 40% to us,” Mohamad Zahri noted.
“MBPJ needs guaranteed income. If our current revenue is RM13mil, we must maintain or exceed that under the new programme.
“That has to be written clearly in the contract,” he said.
He also clarified that his refusal to sign the agreement was not a personal decision but one based on councillors’ concerns.
“Our councillors are our ambassadors,” he said.
“They answer to the people. If the rakyat is unhappy, they will blame us,” he added.
The appointment of Selmax, a subsidiary of ITMax System Sdn Bhd, as the SIP concessionaire has also come under criticism as the company lacks track record in parking management.
Critics have also questioned its selection as Selmax did not submit a proposal during the SIP programme tender.
When asked about this, Mohamad Zahri refused to be drawn into the matter, stating that MBPJ adhered to the state executive council’s decisions.
“The choice of Selmax is up to MBI, provided transparency is upheld,” he said.
Fears and responsibilities
One of the biggest concerns among residents is whether the concessionaire will hike parking fees once it takes over.
Attempting to allay these fears, Mohamad Zahri said: “Any increase, even 10 or 20sen, has to be approved by the state. We cannot just increase it.”
The mayor said the matter would be brought up during the Sept 25 meeting, stressing that the contract must make this clear to avoid burdening the public.
He also stressed the importance of outlining consequences should the operator fail to meet its obligations under the 10+5 year concession agreement.
“If the SIP system fails or if the operator commits a breach of contract, all this must be in the agreement.
“We are fulfilling our trust and responsibility as a city council.”
In this regard, MBPJ has requested defined roles for its officers seconded to the concessionaire, including provisions on compensation for extra work.
“If 50 of our officers are going to work with the private company, there will be dos and don’ts stipulated.
“If they need to claim for extra work, all these elements must be considered,” he said.
He added that MBPJ would also set up a task force to monitor the implementation and ensure compliance.
The mayor acknowledged that privatisation could alleviate MBPJ’s financial burdens, with the concessionaire assuming maintenance costs.
“In a way, the savings in emoluments can be redirected towards drainage or other services,” he noted.
However, he insisted that public interest remained paramount.
“Our decision not to sign is a protective measure for public interest, as represented by our councillors.
“We need to ensure revenue stability and clarity on enforcement before proceeding,” he stated.
The upcoming Sept 25 meeting is expected to be pivotal, with MBPJ councillors poised to demand written guarantees from MBI.
Until then, Mohamad Zahri insists, Petaling Jaya’s parking facilities remain under city council control.
