Sibu: Sibu MP Oscar Ling Chai Yew urges reconsideration of the proposed removal of free lunchtime parking and calls for structural reform of local government funding regarding the Sibu Municipal Council’s (SMC) proposal to abolish its free parking policy during the lunch hour.
He urged the council to carefully reconsider the move, warning that, given the current economic climate, removing the lunchtime parking exemption could impose hidden economic constraints on local businesses. The broader economic losses resulting from the policy, he argued, could far outweigh the relatively modest increase in parking revenue, making it a case of “being penny wise, pound foolish.”
Ling pointed out that the Sibu Municipal Council currently generates only slightly over RM2 million annually from parking fees within its jurisdiction.
“Even if the lunchtime exemption were abolished, the council would likely gain only a few hundred thousand ringgit in additional annual revenue. However, the negative impact on lunchtime commercial activity and the reduced willingness of consumers to visit the town centre could result in economic losses that far exceed those additional earnings,” he said.
He specifically emphasised that if this policy is implemented, the group most directly affected will be office workers in the town centre. A 1.5-hour paid lunch-hour parking period means that workers would have to pay an additional RM1.26 per day.
While this amount may appear insignificant at first, it accumulates over time. When calculated on a monthly or yearly basis, it would become a considerable additional financial burden for residents, effectively reducing consumers’ disposable income.
“The primary purpose of parking charges should never be to serve as a major source of revenue for local authorities. Instead, parking fees are intended to regulate traffic flow, improve parking turnover, and ultimately stimulate economic activity in commercial areas.
“Given that parking revenue constitutes only a very small proportion of the council’s total annual income, insisting on removing the lunchtime exemption could discourage people from shopping and dining in the town centre during lunch hours, affecting local businesses and undermining long-term economic development,” he said.
Such an approach, he mentioned, prioritises short-term gains at the expense of broader economic prosperity.
Ling acknowledged the financial constraints currently faced by the Sibu Municipal Council. At present, the council’s two largest sources of revenue are assessment rates and the Federal Government’s annual allocation under the Malaysian Road Records Information System (MARRIS) Fund for road maintenance. Other revenue streams remain relatively limited, restricting the council’s capacity to drive local development.
He noted that this situation reflects a deeper structural issue. In recent years, the Sarawak Government has successfully expanded its revenue base and accumulated substantial fiscal reserves. Unfortunately, much of this financial strength has been concentrated at the state level through large-scale development projects, while local governments have not directly benefited to the same extent.
This disconnect, in which “the state enjoys fiscal abundance while local councils remain financially constrained,” risks creating a perception among the people of Sibu that they can see Sarawak’s growing prosperity but cannot experience its benefits firsthand. Over time, insufficient funding for local councils could slow down local development and infrastructure upgrades.
Ling further pointed out that, based on available information, approximately 10 out of Sarawak’s 25 local councils are currently operating under budget deficits.
“This indicates that the existing local government financing system still has considerable room for improvement. If structural funding limitations force local councils to raise additional revenue from taxpayers and small businesses to obtain a few hundred thousand ringgit in parking fees, it would not only increase the financial burden on the public but also fail to provide a sustainable solution to the long-term fiscal health of local governments,” he added.
To fundamentally improve the current fiscal structure and allow ordinary people to enjoy Sarawak’s economic prosperity more directly, Oscar Ling proposed that the Sarawak Government consider introducing a permanent institutionalised matching grant based on the assessment rates collected by each local council.
For example, if the Sibu Municipal Council collects RM30 million annually in assessment rates, the state government could provide a matching RM30 million development grant directly to the council each year. Alternatively, the state government could allocate annual institutionalised grants based on the population size within each local authority’s jurisdiction.
He believes that such a system of “sharing prosperity and decentralising wealth” would provide local councils with more stable and adequate financial resources, enabling them to respond more effectively to local development needs, road maintenance, and infrastructure improvements.
In closing, Ling urged the Sibu Municipal Council to listen carefully to the concerns of businesses and residents by reconsidering its proposal and retaining the existing free lunchtime parking policy to preserve the vibrancy of Sibu’s lunchtime economy. At the same time, he urged the Sarawak Government to address the issue of unequal local government financing.
“Given the state’s strong fiscal position today, it should embrace the principle of “returning prosperity to the people and empowering local communities” through a more equitable system of institutionalised funding for local councils,” he said.
