A total of RM266,160 will be refunded to motorists following the cancellation of parking compounds issued through the Automatic Number Plate Recognition (ANPR) system for parking outside designated bays.
A total of 29,240 compounds for the offence were issued between last year and August 2026 within the Penang Island City Council (MBPP) area alone.
Penang Local Government and Town and Country Planning Committee chairman H’ng Mooi Lye said the decision to cancel the compounds was made after the state government considered public feedback and concerns over the implementation of the ANPR system integrated with Penang Smart Parking (PSP).
“The state government also took note of concerns involving motorists who stop briefly to drop off or pick up passengers, as the ANPR system cannot determine whether someone is inside the vehicle at the time.
“Therefore, all compounds issued through the ANPR system for parking outside designated bays will be cancelled,” he said at a press conference at his office on Monday.
Previously, the Penang government directed MBPP and Seberang Perai City Council (MBSP) to immediately suspend the use of ANPR for issuing compounds while the system and its implementation were reviewed.
Chief Minister Chow Kon Yeow said the decision followed feedback and views from members of the public regarding the system implemented by both local authorities.
Moving forward, enforcement against vehicles parked outside designated bays will be carried out manually by local authority enforcement officers based on their observations and the actual circumstances at the location.
However, Mooi Lye said the exemption would not apply to areas where parking or stopping is prohibited, or where vehicles cause an obstruction.
Motorists who have already paid compounds issued through ANPR for parking outside designated bays can submit refund claims until Sept 30, 2026. The claims will be handled by MBPP and MBSP.
For MBPP, applicants must provide the compound payment receipt and a copy of their bank statement. Claims can be submitted physically at the refund claim document counter on Level 3 of Komtar or via email.
For MBSP, claims can be submitted to the MBSP Enforcement Directorate at Level 1, Jalan Betek Branch Office in Bukit Mertajam, or through email. Applicants must also provide the payment receipt and bank statement.
For compounds paid through the PSP application, refunds will be processed automatically into the user’s PSP wallet.
Meanwhile, Mooi Lye said the state government was also aware of cases where motorists received ANPR compounds for failing to pay parking charges despite having made payment within 10 minutes of the compound being issued.
Those affected can appeal to either local authority to have the compound cancelled and obtain a refund if the compound has already been paid.
Mooi Lye said the state government would continue to prioritise the concerns and needs of Penang residents at the grassroots level to ensure public services and initiatives were delivered more effectively.
