KUALA LUMPUR – The Selangor state government has yet to finalise its Smart Intelligent Parking (SIP) concession agreement and is now in the final stages of negotiations, said State Executive Councillor for Local Government and Tourism, Datuk Ng Suee Lim.
According to Ng, discussions are ongoing between local authorities, Menteri Besar Selangor (Incorporated) or MBI Selangor, and its subsidiary Rantaian Mesra to implement the SIP system.
“The agreement is being finalised, covering all aspects including technical and financial assessments, enforcement, and governance among the three parties. It is expected to be signed by August 1.
“This approach will enable more effective regulatory oversight and ensure the project remains under direct state supervision,” he said during a press conference in Shah Alam today.
Ng denied claims that local councils are being sidelined under the new concession deal.
“Even though MBI and the concession company are involved, enforcement powers will remain with the local authorities.
“We recognise there are pros and cons to this approach. Both models have their strengths and weaknesses. This time, the state government is ensuring a win-win situation by adopting the Smart Intelligent Parking system, with MBI playing a role in parking management,” he said.
On allegations that the Petaling Jaya City Council (MBPJ) could lose up to RM10 million annually under the new concession, Ng stressed that the new model would boost revenue once fully implemented.
“There may be a slight drop initially, based on rough projections. However, the newly appointed concessionaire will be making significant investments to upgrade the system — including infrastructure and enforcement mechanisms — to ensure collections increase over time,” he said.
He added that local authorities would not bear any operational costs and are instead expected to receive higher collections due to increased efficiency, digitalisation, and centralised monitoring.
“The state government emphasises that this implementation aligns with its push for digitalising public services and developing smart cities, while preserving regulatory control and the absolute authority of local councils over parking governance in their respective jurisdictions,” he said.
Under the tripartite agreement, local authorities will retain full enforcement powers, Rantaian Mesra will act as system coordinator, and the appointed concessionaire will manage daily parking operations for four local councils — Shah Alam City Council (MBSA), Petaling Jaya City Council (MBPJ), Subang Jaya City Council (MBSJ), and Selayang Municipal Council (MPS).
Ng said the concessionaire is expected to invest RM200 million into smart parking infrastructure, including the installation of approximately 1,800 closed-circuit television (CCTV) cameras at key parking areas in the four councils during the first phase.
“The additional CCTV coverage is not just to monitor parking and detect non-paying users, but will also aid the police in urban safety efforts through live data and information sharing. This initiative is expected to help reduce urban crime rates,” he said. – July 15, 2025