By The Edge Malaysia | 14 Jul 2025
This article first appeared in The Edge Malaysia Weekly on July 14, 2025 - July 20, 2025
From Aug 1, a newly appointed concession company, Rantaian Mesra Sdn Bhd, will take over parking fee collection and enforcement for 10 years in four Selangor local councils: Petaling Jaya City Council (MBPJ), Subang Jaya City Council (MBSJ), Shah Alam City Council (MBSA) and Selayang Municipal Council (MPS).
State local government and tourism committee chairman Datuk Ng Suee Lim reportedly said Menteri Besar Selangor Inc (MBI Selangor) appointed Rantaian Mesra (formerly known as Better Rewards Sdn Bhd) after 26 companies responded to a Request for Proposal (RFP).
Ng also said Rantaian Mesra was selected based on strict performance conditions and “the 10-year contract can be terminated at any time” if targets are not met, and he assured that parking rates would not rise but remain at between 40 sen and 60 sen per hour.
Ng said the state had appointed a concession company to improve parking revenue, with current collection at just 30% from 1,000 bays. The goal is to raise the rate to at least 60%.
According to Ng, the concessionaire will handle both fee collection and enforcement under close supervision from the councils and state governments.
In return, Rantaian Mesra will get 50% of revenue, while 40% will go to the local councils and the remaining 10% to MBI Selangor.
A company search reveals, however, that Rantaian Mesra is wholly owned by MBI Selangor — the body established to administer assets and investments of the Selangor government.
Rantaian Mesra’s directors are MBI Selangor group CEO Datuk TS Saipolyazan Mat Yusof and Ahmad Azri Zainal Nor, MBI Selangor’s head of corporate social responsibility and corporate communications, according to data from the Companies Commission of Malaysia (SSM).
It is not wrong for the state government to set up a company to handle parking collection, provided it can operate it efficiently. What is perplexing is why the state government went through the trouble of conducting a public RFP only to award the concession to a state-owned entity.
Can the public be blamed for thinking the RFP is just for show?
This raises the question: Is Rantaian Mesra allowed to sell its concession to third parties? And is MBI Selangor permitted to divest its interest?
Source: https://tinyurl.com/vjzt2j7h
Our comment.
Our critical view that aligns with this article perspective:
The Selangor government’s decision to award a 10-year parking fee concession to its own state-owned enterprise, Rantaian Mesra (wholly owned by MBI Selangor), undercuts the principles of a free market economy. While a public RFP was conducted, selecting a government-linked company raises eyebrows about transparency and fair competition.
This move risks crowding out capable private-sector players who could drive innovation and efficiency in urban infrastructure. By monopolizing enforcement and fee collection, the state not only limits market dynamism but also perpetuates public skepticism about government-linked deals. The optics of awarding the contract to a firm with direct ties to the state—after a supposedly competitive process—undermines confidence in the RFP’s integrity.
A better approach would be to open bidding more transparently and ensure that evaluation criteria prioritize operational efficiency, technological innovation, and public accountability—regardless of ownership. Private sector participation could foster better services and revenue collection while preserving trust in public institutions.