Two local community groups are raising red flags over Selangor’s decision to privatise parking enforcement and fee collection in Petaling Jaya and three other city councils starting August 1.
PJ Sejahtera and Persatuan Petaling Jaya Lestari argue that parking is a public resource, one that should remain under local council control, with all earnings going back into community development, not a corporate partner’s bottom line.
The groups estimate Petaling Jaya alone could lose up to RM10 million in annual revenue. More importantly, they believe the move weakens local councils' authority under the Road Transport Act 1987, which currently gives them power to manage parking matters directly.
According to them, the decision lacked transparency, with no public consultation held before the deal was made. They’re now urging the Selangor government to explain how the company was chosen and to release all related documents, including the tender process and final contract.
“This isn’t just about parking,” they said. “It’s about public accountability, transparency, and respect for local governance.”
On Wednesday, Local Government and Tourism Committee chairman Ng Suee Lim announced that Rantaian Mesra Sdn Bhd will take over parking operations under the state’s new Smart Intelligent Parking (SIP) system.
"Under the new arrangement, 50% of parking revenue will be allocated to the concessionaire, while the remaining 50% will go to the state government
“Of the state's portion, 40% will be distributed to the local councils involved, with the remaining 10% directed to Menteri Besar Selangor Incorporated (MBI)," he clarified.
Ng also stated that Rantaian Mesra was picked through an open tender process that started with 26 proposals. Three companies made it to the final round before the contract was awarded.
