Penang Cancels ANPR Parking Compounds, Offers Refunds

Motorists issued compounds through Penang’s automated number plate recognition (ANPR) system for parking outside designated bays will have them cancelled, while those who have already paid will get refunds.

State local government committee chairman H’ng Mooi Lye said refund claims could be made to the Penang Island City Council (MBPP) or Seberang Perai City Council (MBSP) until Sept 30. Those who paid through the Penang Smart Parking (PSP) app will be refunded automatically into their PSP wallets.

He said motorists who were compounded for not paying for parking, but made payment within 10 minutes of the compound being issued, could also appeal for the compound to be cancelled or refunded if it had already been paid.

H’ng said the move followed complaints that the ANPR system could not tell whether a vehicle was actually parked or had merely stopped briefly to pick up or drop off passengers.

He said enforcement against vehicles parked outside designated bays would now be carried out manually by council officers, although action would continue against vehicles in no-parking or no-stopping areas or those causing an obstruction.

For refunds made outside the PSP app, motorists must submit their compound receipt and a copy of their bank statement to MBPP at Level 3, Komtar, or MBSP’s Enforcement Directorate at its Jalan Betek branch office in Bukit Mertajam. Applications may also be emailed to perbendaharaan@mbpp.gov.my or direktorat@mbsp.gov.my.

Meanwhile the press statement by Yb H’ng Mooi Lye State Exco for Local Government, Town and Country Planning is as follows –

“Recently, concerns and views have been expressed by the general public through social media, elected representatives, consumer associations and various stakeholders regarding the implementation of the Automated Number Plate Recognition (ANPR) system, which is integrated with the Penang Smart Parking (PSP) system. The Penang State Government takes seriously the views, concerns and feedback raised by the people.

“For everyone’s information, the ANPR system is part of the development of the PSP system proposed by the vendor through the Request for Proposal (RFP) process for parking management in Penang. Its implementation was intended as an aid to Local Authority (PBT) enforcement officers in carrying out their duties more efficiently, transparently and consistently. Importantly, the Penang Island City Council (MBPP) did not incur any additional costs for the implementation of ANPR, as it forms part of the overall PSP system.

“As soon as the issue concerning ANPR became widely known, I held a meeting with Dato’ Ir. Rajendran P. Anthony, Mayor of MBPP, and his team on 7 August 2026 to obtain an explanation and an update on the latest developments. Subsequently, a report was submitted by my office to the Chief Minister of Penang on the same day. As a follow-up, the Chief Minister issued a statement directing that the implementation of ANPR be stopped and that the system be reviewed.

“The State Government also acknowledges the public’s concern regarding situations where drivers may stop only briefly to drop off or pick up passengers, while the ANPR system is unable to determine whether there is an individual inside the vehicle at that particular time.

“To ensure that there is no dispute over this matter, all compounds issued through the ANPR system for the offence of parking outside a designated parking bay will be cancelled. For future offences involving parking outside a designated parking bay, enforcement action will be carried out manually by PBT enforcement officers on the ground, based on their observations and the actual circumstances, except in areas where parking, stopping or causing an obstruction is prohibited.

“For individuals who have already paid compounds issued through ANPR for the offence of parking outside a designated parking bay, both Local Authorities—the Penang Island City Council (MBPP) and the Seberang Perai City Council (MBSP)—will allow refund applications to be submitted until 30 September 2026.

“The State Government also understands that some users have received compounds issued through ANPR even though they had made parking payments within a very short period. Therefore, any individual who had received a compound for failing to make a parking payment, but had in fact made the payment within ten (10) minutes of the time the compound was issued, may submit an appeal to either PBT for cancellation of the compound and a refund if the compound has already been paid.

Penang Island City Council (MBPP):

The required documents are as follows:

For compound payments made through the Penang Smart Parking (PSP) application, refunds will be processed automatically into the user’s PSP wallet account.

Receipt for payment of the compound

Copy of bank statement

Refund claim documents may be submitted at the counter on Level 3, KOMTAR (in person), or via email at perbendaharaan@mbpp.gov.my (online).

Seberang Perai City Council (MBSP):The required documents are as follows:

• Receipt for payment of the compound
• Copy of bank statement