KUALA LUMPUR (Aug 1): ITMAX System Bhd (KL:ITMAX) said on Friday that its 70%-owned subsidiary, Selmax Sdn Bhd, has secured a 10-year contract from the Subang Jaya City Council (MBSJ) to manage parking in the city under the Selangor Intelligent Parking (SIP) system, with an option for a five-year extension.
Selmax will implement the contract in partnership with Rantaian Mesra Sdn Bhd, which serves as the SIP system provider, ITMAX said in a bourse filing.
The smart parking operator said the parties will formalise their roles through a tripartite agreement involving Selmax, MBSJ and Rantaian Mesra.
Rantaian Mesra, a wholly-owned unit of Menteri Besar Selangor Inc (MBI), was recently appointed by the Selangor government to operate the SIP in four local councils in the state — MBSJ, Petaling Jaya City Council (MBPJ), Shah Alam City Council (MBSA) and Selayang Municipal Council (MPS) — for 10 years together with the local councils and a private company.
ITMAX, in its filing, said that revenue from parking and compound collections in Subang Jaya will be shared among the three parties, with Selmax receiving 50%, MBSJ 40% and Rantaian Mesra 10%.
“Selmax will be responsible for the emoluments and bonuses of parking attendants deployed to manage the gazetted car park spaces in the areas under the jurisdiction of MBSJ.”
It will also maintain the parking areas — including repainting and repairs — and deploy monitoring cameras, enforcement vehicles and other necessary infrastructure.
ITMAX said the contract is expected to contribute positively to its earnings and net assets over the contract period.
Shares in ITMAX finished five sen or 1.25% higher at RM4.06 on Friday, valuing the group at RM4.19 billion.