Steep hike: Parking rates on Penang island will go up by 50% at designated locations for Penang Smart Parking (PSP) users starting March 2025. — ZHAFARAN NASIB/The Star
Islanders fuming over parking fee hike starting next March
GEORGE TOWN: The Penang Island City Council’s (MBPP) decision to hike public parking fees by 50% next March is driving islanders up the wall, as they feel the hike is too high.
Assistant manager Muhammad Azreen Sani, 32, said he was shocked by the announcement.
“I take the full day parking option which costs RM6, but now it will be RM9 a day.
“I have to drive to work as I need to meet clients outside. I usually spend less than RM120 a month on parking, but now it will cost me RM180 a month,” he said.
“For some, RM60 may not be much, but it is a lot to me.
“This money will have to come out of what I spend on food or car maintenance,” he said.
Muhammad Azreen feels that there has to be justification for the increase, such as an improvement in services.
“If the extra charge means more public parking spaces, I might understand, but there is limited space.
“We have to spend so much time – and petrol – driving around looking for a spot,” he said.
Under the revision, parking fees will rise from 40sen to 60sen for 30 minutes, from 80sen to RM1.20 for an hour and from RM6 to RM9 for a full day.
Penang mayor Datuk A. Rajendran said on Tuesday that the fee hike was necessary to cover the maintenance of parking sensors and implement upgrades.
The last parking fee revision was done in the 1990s, he said.
Penangites who pay annually will enjoy rates from RM1,200 to RM1,800 between March and December next year, while monthly charges will remain unchanged at RM150.
B. Premala, 67, who works as a translator, said she parks five times a week at public parking lots.
“I work 20 days a month, so I will have to spend around RM120 a month, instead of RM80, as I park up to five hours a day. That is quite a bit of money for me.
“If they had raised it by 20%, I would understand, but 50% is too much,” she said.
Retiree CK Ho, 62, shared her sentiments.
“Public parking is a general need and should not be made into a profit-oriented business,” he said.
Penang MCA publicity chief Tan Eng Hin said the council should explore alternative sources of revenue rather than burdening the public.
He said the people were already hard hit by the hike in domestic water tariff rates earlier this year.
Several days ago, the state government said it would earn between RM50mil and RM100mil extra in annual revenue by increasing land-related taxes in 2026.
“Has the state government considered the impact on low-income families who are already struggling?
“All these are pushing the people of Penang into hardship. The local council and the state government should focus on attracting investments, bringing in foreign capital and developing the tourism industry to increase Penang’s revenue,” he said.
Consumers Association of Penang president Mohideen Abdul Kader, however, welcomed the higher rates and recent introduction of dedicated bus lanes and taxis.
“Car owners occupy parking spaces for extended periods, or even days. This practice deprives others of access to parking.
“The MBPP should also consider implementing a limited time parking system,” he said, adding that the dedicated bus lanes were a positive step towards ensuring reliable public transport.
Mohideen said as long as there are no strong “dis-incentives” for car ownership and driving, Malaysians are unlikely to switch to public transport.
