New concessionaire to manage parking fee collection in Selangor from Aug 1, for MBPJ, MBSJ, MBSA, MPS

The Selangor state government has announced that a newly appointed concession company will take over public parking fee collection and enforcement for four local councils (PBTs) in the state starting from August 1, Bernama reports.

State local government and tourism committee chairman Datuk Ng Suee Lim said the appointment of the company was made via Mentri Besar Selangor (Incorporated) subsidiary Rantaian Mesra, with the four PBTs being the Petaling Jaya city council (MBPJ), Subang Jaya city council (MBSJ), Shah Alam city council (MBSA) and Selayang municipal council (MPS).

He said the move is part of the state government’s efforts to boost public parking revenue, of which collection currently amounts to only about 30% from 1,000 designated bays, and that the low compliance was mainly due to the lack of manpower for enforcement. “With the company dedicated to managing on-street parking, fee collection is projected to reach more than 60%,” he said.

Ng said both fee collection and enforcement will be handled by the company, with the councils and state government providing close supervision. He added that the concessionaire would also absorb a few enforcement officers by training them and placing them under its payroll.

In terms of revenue, this would be split equally, Ng said, with the concessionaire receiving 50% and the remaining 50% to the state, with 40% of this going to the councils and 10% to MBI Selangor.

Ng denied claims made in media reports that the appointment had been made through a direct tender process, stating that 26 companies responded to a request for proposal (RFP) before three were eventually shortlisted.

He said that the company that was appointed was selected based on strict performance conditions. “If targets are not met, the 10-year contract can be terminated at any time,” he explained.

He assured that the new system would not lead to higher parking rates, which ranges between 40 and 60 sen per hour, depending on the council. There are also no changes in how parking payments are made – the same apps as available now can be used to pay parking fees.

Ng added that having a company solely focused on on-street parking collection and enforcement would relieve councils of those duties, leaving them with resources to focus on other responsibilities.