By Aida Nyan
SHAH ALAM, July 9 — The state government has dismissed allegations that the implementation of its Smart Intelligent Parking (SIP) system, which will see municipal parking operations handled by a private firm, was awarded through direct negotiation.
State executive councillor for local government and tourism Dato' Ng Suee Lim described the claim as unfounded, clarifying that the selection of the operating company was made through an open tender process via a request for proposal (RFP).
“The state government has approved the initiative through Menteri Besar Selangor (Incorporated) or MBI, in collaboration with Rantaian Mesra Sdn Bhd.
"MBI has issued an RFP, and a total of 26 companies have expressed interest. Subsequently, three companies were shortlisted," he said during a press conference at the State Secretariat Building today.
Ng added that the SIP implementation is meant to streamline parking fee collection across all local councils, making it more systematic and efficient, in line with the Smart Selangor initiative that emphasises the use of technology and the Internet of Things.
The first phase will commence on August 1, involving four local authorities: the Petaling Jaya City Council (MBPJ), the Subang Jaya City Council (MBSJ), the Shah Alam City Council (MBSA), and the Selayang Municipal Council (MPS).
Among the system's main objectives is to increase the parking payment rate, which currently stands at just 30 per cent, and to minimise issues like double parking and lack of enforcement.
"Another reason is we want them (concessionaire) to be the ones focusing on the SIP, as the local councils are already overloaded with work and understaffed. Enforcement, particularly legal action through the courts, cannot be carried out effectively,” he said.
Under the new arrangement, parking revenue will be divided, with 40 per cent going to the local councils, 10 per cent to MBI, and 50 per cent to the concessionaire.
"The burden of operation will be managed by the concession company, including salary payment, training for enforcement personnel, and capital injection for the system.
"We have learned from the previous model. Now, contracts are only awarded for a 10-year period, with a five-year extension, contingent upon satisfactory performance.
"If they fail to meet targets, we will terminate the contract and return the responsibility to the government,” Ng said.
The councillor also denied allegations of a potential parking rate hike, since the current rate of between 40 sen and 60 sen per hour is reasonable when compared to other states.
He expressed hope that the SIP implementation would serve as a model for modern parking management systems, featuring closed-circuit television (CCTV) and a control centre that monitors parking operations in real-time.
Yesterday, online portal Scoop reported that a private company linked to a tycoon has submitted a proposal to the state government to take over the monitoring and maintenance of municipal parking for 50 per cent of the revenue.
The report also questioned the company's appointment, which was allegedly made via direct negotiation, raising concerns over potential losses to the local authorities and a burden on taxpayers.
