Selangor still finalising smart parking deal, says exco

Selangor state executive councillor Ng Suee Lim clarified that discussions are still ongoing over the privatisation of street parking management across four local authorities.

Speaking to reporters at a press conference in Shah Alam earlier today, he said a final agreement is expected to be signed by Aug 1.

Ng, who holds the local government and tourism portfolio, said Menteri Besar Incorporated (MBI) Selangor is in the final stages of negotiations with its subsidiary, Rantaian Mesra Sdn Bhd, to implement the Selangor Intelligent Parking (SIP) system.

“When the time comes on Aug 1, they (MBI) will make the announcement,” he said.

He explained that SIP involves a collaboration between local authorities, Rantaian Mesra, which will act as a coordinator, and a private concession company handling field operations.

“This implementation will be formalised through a tripartite agreement between the local councils, Rantaian Mesra Sdn Bhd, and the concession company to ensure that the roles, scope, and responsibilities of each party are clearly defined and comply with established governance practices.

“Details regarding technical, financial, enforcement, and governance aspects among the three parties are being finalised and are expected to be signed by Aug 1,” said the Sekinchan assemblyperson.

“This step will enable more effective oversight and ensure that the project remains under the direct monitoring of the state government,” he added.

The four local authorities involved in the initiative are the Petaling Jaya City Council (MBPJ), Subang Jaya City Council (MBSJ), Shah Alam City Council (MBSA), and Selayang Municipal Council (MPS).

Ng said all four have agreed in principle to the privatisation proposal, although there is still room for improvement.

He was responding to concerns over the move, including fears of reduced revenue for the councils.

RM200m private investment

Under the proposed model, Ng (above) said the concession company is expected to invest RM200 million to develop the SIP infrastructure, which includes installing about 1,800 CCTV cameras at parking lots.

The company is expected to recoup its investment within three years.

“Financially, parking revenue will be shared among the local councils, Rantaian Mesra, and the concession company according to their respective financial models and functions.

“It is important to note that the local councils will not bear any operational costs and are expected to collect more revenue than before due to system efficiency improvements, digitalisation, and centralised monitoring,” he said.

Earlier today, Selangor Menteri Besar Amirudin Shari also addressed the matter, promising to review the concerns raised over outsourcing the collection of parking fees.

“I will look into this again since the issue has been brought up,” he said during a press conference after attending an event at the state secretariat building.

The Star earlier quoted Amirudin as confirming Ng’s previous remarks on the state’s plans to roll out the SIP initiative, aimed at modernising on-street parking management in Selangor with Internet of Things (IoT) technology.

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