MBSA eyeing revenue increase | The Star

Fourfold rise subject to renewal of parking concessionaire’s contract

SHAH Alam City Council (MBSA) is aiming for a quadruple revenue increase from parking compounds and rental of parking bays next year.

The contract of parking concessionaire Suasa Efektif Sdn Bhd, which is in charge of monitoring parking bays and issuing compounds, is slated to end in April.

Shah Alam mayor Dr Nor Fuad Abd Hamid said currently proceeds from parking compounds were shared equally between MBSA and Suasa Efektif.

“On average, MBSA receives RM12mil annually from services managed by the concessionaire.

“Once we have full control over parking and compounds, we expect revenue to go up to RM40mil a year,” he told reporters at Wisma MBSA in Shah Alam, Selangor after presenting the city council’s Budget 2024.

Nor Fuad said currently, Suasa Efektif paid MBSA a fixed amount for the bays before collecting parking fees from motorists.

On average, he said, some 80,000 compounds relating to parking offences were issued every month.

He, however, added that the state government had yet to decide whether Suasa Efektif’s contract would be renewed.

“If renewed, the city council will try to renegotiate for returns to be split 80-20 with the concessionaire,” he said.

On a related matter, Nor Fuad said MBSA planned on adding 10,000 parking bays in Shah Alam by end of 2024.

He said this would cater to the growing number of motorists from a number of recent developments in the city.

In his speech, Nor Fuad said MBSA expected to spend RM587.5mil next year, an increase of 1.4% from this year’s expenditure.

This figure includes RM468.3mil for management and services and another RM119.2mil for development purposes.

The increase in spending took into account the increase in Shah Alam’s population and current economic climate, he added.

A Statistics Department 2020 census showed that about 830,000 people lived in Shah Alam.

Despite the tough economic climate, the mayor said MBSA was optimistic of achieving a 5% revenue increase to RM530.5mil next year.

He outlined several measures to enhance revenue, which included use of technology to deliver services.

Other measures involved setting up a task force to recover assessment arrears and introduction of a performance indicator for departments involved in collecting payments.