Proposed rates hike may backfire: Labuan Chamber
Published on: Monday, December 09, 2019
By: Sohan Das
LABUAN: Folks here still anxious over the proposed increase in assessment rates now have to contend with a shocking RM300 increase for reserved parking lots anywhere on the island.
A notification issued by Labuan Corporation (LC) dated Dec 2 said the new parking fee for reserved lots would be increased from RM200 to RM500 per month, effective Jan 1.
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Labuan Chinese Chamber of Commerce Chairman Datuk Wong Kii Yii (pic) said it is a pennywise pound foolish decision because most of the holders would be forced to give up their reserved lots and this would mean LC losing a fixed annual income of RM115,000 per month from the 48 reserved lots.
He said his company had three such lots and the Chinese Chamber of Commerce has two next to the premises. The five lots alone cost RM12,000 per year at the current rate.
Based on the new rate of RM500, the monthly fee would amount to a whopping RM30,000 for a year.
“It is too costly to pay for a temporary asset with no returns.”
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As such, Wong expected most of the 48 reserved lot holders to surrender them back to LC.
He also said he was not aware of the rationale for such a drastic jump in fee.
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“Maybe the LC wants more lots to be made available for the public to use around the town area but I hope this is not the prelude to later increasing the hourly parking fee of 50 sen and 70 sen as this would have a wide effect.”
A member of the LC Advisory Council panel, Noor Halim Zaini, said:
“My personal opinion is to ease parking problem in hotspot areas by zoning parking lots with red, green and yellow colours with substantially higher fees to deter prolonged use of the lots. This would make way for other motorists looking for parking space.”
A company executive who asked not to be named said:
“If it were to create more parking lots for the public, then LC should set an example since 30 parking lots are reserved for LC officers at the LC administration tower building.
“Has this been gazetted for LC exclusive use with others parking being fined RM15?”
He noted that some of the reserved parking lots were for customers.
“Shops that sell bulk items like electrical appliances or other such products need a lot for customer convenience like clinics for visiting critical patients.
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