Outsourced parking management not new in Selangor, concessionaire arrangement in place since 1996: exco

Following a number of groups’ questioning the decision by the Selangor state government to award the parking fee collection and enforcement rights to a company, Selangor local government and tourism committee chairman Datuk Ng Suee Lim has stated that parking management through a concessionaire has been in use in Selangor since 1996, reported Bernama.

The implementation of the concessionary parking management that is to be signed and enforced on August 1 this year will improve the existing system, Ng said. “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 Menteri Besar Selangor Incorporated (MBI) playing a role in parking management,” he said.

The decision to implement the parking management system arose from the 33rd 2024 state executive council meeting (MMKN) which convened on November 28, 2024, and this was confirmed in the 34th 2024 state executive council meeting that followed on December 6, 2024, Ng said.

“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, named Rantaian Mesra Sdn Bhd, be appointed to implement the Smart TLK management in the state of Selangor,” he said.

Outsourced parking management not new in Selangor, concessionaire arrangement in place since 1996: exco

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, the committee chairman continued.

“This implementation will be formalised through a tripartite agreement between the specific PBT, the concessionaire and Rantaian Mesra to define clearly each party’s role, scope and responsibility that comply with the prescribed governance,” Ng said.

The concessionaire would invest RM200 million for the Smart Parking infrastructure, including the installation of 1,800 CCTV cameras in the four PBTs involved in the first phase. Meanwhile, 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).

The concessionaire is only responsible for system maintenance and payment of staff salaries while all enforcement action, including the issuance of compound notices, would still be carried out by PBT officers. The local authorities would not bear any operating costs, but are instead expected to receive higher collections, Ng said.

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