PJ MP warns RM10 million revenue loss from outsourced parking, urges councillor stand

SHAH ALAM – Petaling Jaya Member of Parliament Lee Chean Chung plans to contact all city councillors, urging them to oppose the Selangor state government's decision to outsource parking fee collection to a private concessionaire.

He warned that this move could result in an annual revenue loss of up to RM10 million for the Petaling Jaya City Council (MBPJ).

Lee's concerns come in response to reports that the Selangor government has announced a new company will take over parking fee collection and enforcement for four local councils including MBPJ, Subang Jaya City Council (MBSJ), Shah Alam City Council (MBSA) and Selayang Municipal Council (MPS) starting August 1.

"MBPJ collected RM20 million a year. Assuming the same payment rate and a reduced commission from 90 per cent to 40 pe rcent, it will impact about RM10 million of revenue.

"I will write to all city councillors and urge them to take a stand," he told Sinar Daily.

The initiative, reportedly part of the Selangor Intelligent Parking (SIP) system, was confirmed by State Local Government and Tourism Committee chairman Datuk Ng Suee Lim at the Selangor State Assembly on July 9.

Ng explained that Menteri Besar Selangor (Incorporated) made the appointment as part of the first phase of parking system centralisation.

The goal is to improve collection rates, which currently stand at only around 30 per cent from an estimated 1,000 designated bays.

While the state contends the move will boost efficiency and earnings, Lee fears it will have the opposite effect for MBPJ.

As of press time, Selangor Menteri Besar Datuk Seri Amirudin Shari has not responded to Sinar Daily’s request for comment on the matter.