Penang cancels 29,240 parking compounds issued by ANPR enforcement system, to refund RM266,160

Following the decision to suspend the automatic number plate recognition (ANPR) system used for issuing parking compounds, the Penang state government has cancelled 29,240 parking compounds issued by the system for parking outside designated bays

According to state local government committee chairman H’ng Mooi Lye, the compounds, which were issued by the Penang island city council (MBPP) from 2025 and up to August this year, would be cancelled. He said that motorists who had paid could apply for refunds until September 30, with RM266,160 set to be refunded.

Refunds for compounds paid through the Penang Smart Parking application would be credited automatically to users’ wallets, while those who had paid through kiosks or other channels would need to submit the required documents to the respective local authorities to process their claims, the New Straits Times reports.

He added that motorists who had received compounds for failing to pay parking charges could also appeal for cancellation if they had made payment within 10 minutes of the compound being issued.

H’ng said the decision was made after authorities took note of public concerns over the system’s inability to determine whether a vehicle was parked illegally or had briefly stopped to pick up or drop off passengers.

As such, enforcement against vehicles parked outside designated bays would now be carried out manually by enforcement officers, based on the actual conditions at the location. Action will continue to be taken against vehicles parked in no-parking areas or those causing an obstruction.

Penang cancels 29,240 parking compounds issued by ANPR enforcement system, to refund RM266,160

While the ANPR system has been suspended and a review of it has been called for, H’ng said the move did not mean the use of ANPR itself had been scrapped. He said any future use of ANPR for parking enforcement would have to take into account conditions on the ground, particularly on Penang island, where narrower roads mean motorists may need to stop briefly to pick up or drop off passengers.

He said the state government was considering measures such as introducing a 10-minute buffer period or conducting multiple scans of a vehicle before an automated compound can be issued.