SHAH Alam City Council (MBSA) has set a target of quadrupling its revenue from parking compounds and rental of parking bays next year. The contract of parking concessionaire Suasa Efektif Sdn Bhd, responsible for monitoring parking bays and issuing compounds, is set to end in April. Currently, the proceeds from parking compounds are divided equally between MBSA and Suasa Efektif. However, Mayor Dr Nor Fuad Abd Hamid expects revenue to increase from RM12 million to RM40 million per year once they have full control over parking and compounds. He stated this during the budget presentation at Wisma MBSA in Shah Alam, Selangor.
The mayor also mentioned that Suasa Efektif currently pays a fixed amount to MBSA for the bays before collecting parking fees from motorists. On average, around 80,000 compounds relating to parking offences are issued every month. However, it is still undecided whether Suasa Efektif’s contract will be renewed. If renewed, the city council intends to renegotiate for an 80-20 split in returns with the concessionaire.
In addition, MBSA plans to add 10,000 parking bays in Shah Alam by the end of 2024 to accommodate the growing number of motorists resulting from recent developments. The proposed budget for next year is RM587.5 million, a 1.4% increase from this year’s expenditure. This allocation includes RM468.3 million for management and services, as well as RM119.2 million for development purposes. The increase in spending is attributed to the population growth in Shah Alam and the current economic climate.
According to a Statistics Department 2020 census, the population of Shah Alam is approximately 830,000 people. Despite the challenging economic situation, the mayor remains optimistic about achieving a 5% increase in revenue to RM530.5 million next year. To enhance revenue, MBSA plans to leverage technology to deliver services. They will also establish a task force to recover assessment arrears and introduce performance indicators for departments involved in collecting payments.
Credit: The Star : Metro Feed
