KUALA LUMPUR (July 30): ITMAX System Bhd (KL:ITMAX) said on Tuesday that its subsdiary has been appointed the operator of a smart parking system by the Kulai Municipal Council in Johor.

Southmax Sdn Bhd (SSB), a 65%-owned unit of ITMAX, will operate the smart parking system for 3,974 street parking bays across 28 locations in Kulai district, the company said in an exchange filing. The appointment, effective Aug 1, 2024, will last 15 years, it noted.

SSB is mandated to provide security deposits covering six months' worth of staff emoluments and six months' projected parking revenue.

“SSB is responsible for the costs of the development, management and maintenance of the smart parking system as well as the parking space equipment and signage,” said the company in its bourse filing today.

Besides, a formal contract outlining all terms will be executed by both parties, and the letter of agreement (LOA) will remain effective throughout the duration of the agreement.

ITMAX is primarily engaged in the supply, installation and management of public space networked systems. This includes specialising in the installation of networked lighting systems and traffic management systems.

Under Phase 1, SSB will operate the smart parking system for 3,974 street parking bays across 28 locations in the Kulai area. Under a revenue sharing model, Southmax will receive 70% of the revenue generated from parking collections and parking compounds through its application, Parkmax@JOHOR.

ITMAX System managing director and CEO William Tan Wei Lun said this contract marks the company's second appointment as a smart parking system operator in Johor.

"We will integrate the smart parking system with our current video surveillance and artificial intelligence solutions to streamline parking operations. We are optimistic that this system will significantly benefit the local council and help us expand this service offering to other cities," said Tan.

At the midday break, ITMAX added 1.89% or 6 sen to RM3.23 with 759,500 shares traded.