Kuching: KCPS Sdn Bhd, the company responsible for managing Kuching’s city parking within the Kuching North City Hall (DBKU) and Kuching South City Council (MBKS) jurisdictions since 2005, has been revealed to have years of financial losses, low dividend payouts, and governance failures.
Pending Assemblywoman Violet Yong Wui Wui raised the issue during her debate on the State Budget 2026 at the State Legislative Assembly (DUN) today, demanding full transparency and accountability from the company and the councils that partially own it.
“KCPS is owned by MBKS (26%), DBKU (26%), and Rezeki Tinggi Sdn Bhd (48%), meaning that over half of the company is effectively owned by the public through their local councils.
“Therefore, the public has every right to demand transparency and accountability over its operations and finances,” she said.
Sign of systemic mismanagement
According to Yong, KCPS was profitable in its early years, except in 2013, but its performance declined sharply from 2017 onwards.
“The company recorded losses in 2013, 2017, 2018, 2019, 2021, 2022, and most severely in 2023, when losses totaled RM2.19 million. Its current liabilities surged to RM14.2 million in 2023.
“This is not merely a financial concern; it is a glaring sign of systemic mismanagement,” she said.
Yong added that this is even more troubling, as despite holding a monopoly over parking operations in Kuching, KCPS only declared dividends in four years over the past two decades: 2008, 2009, 2010, and 2011.
“This directly contradicts the company’s own promotional claim as stated on its website that since its operation started on 1 February 2025, the Kuching City Authorities of DBKU and MBKS have enjoyed a triple monthly guaranteed parking bay rental income with an additional 52% year-end dividend from KCPS as compared to the former concession holder.
“In reality, over 25 years of operation, the total dividends paid out amount to only RM623,500.00. How does this reflect well on a company tasked with managing an essential urban service and one that is majority-owned by DBKU and MBKS?” she asked.
Yong also criticised the payment of directors’ fees, which were made in 2017, 2018, and 2019 despite the company posting losses and declaring no dividends.
“How can a loss-making company justify paying directors while failing to deliver returns to the very public that owns it?” she asked.
Was proper oversight done?
She also questioned whether DBKU and MBKS exercised proper oversight, or whether the company was allowed to operate unchecked.
She also requested clarification on which council is more efficient in collecting parking fines and notices.
“These questions must be answered. At stake is not just the credibility of KCPS, but the integrity of our public institutions. This reflects very poorly on both DBKU and MBKS, institutions entrusted with safeguarding a public asset.
“If our councils cannot even manage a parking company properly, how can the public trust them to manage city-wide infrastructure and essential services?” she asked.
She emphasised that professionalism and transparency cannot be claimed when basic obligations, such as declaring dividends, managing debts responsibly, and ensuring public accountability, are not fulfilled.
“Now that KCPS’s operating contract has ended and its revenue stream has stopped, what will happen next? Will the company be allowed to collapse? Or will the councils inject public funds to bail it out? Will the losses be quietly written off without proper disclosure?
“I urge the Minister of Public Health, Housing, and Local Government to clarify this matter in this House,” she said.
She also highlighted public feedback from workers in downtown areas, such as Carpenter Street, Main Bazaar, and China Street, who reported that the current parking operator, Pay & Go, does not provide season parking, unlike KCPS previously did. Yong urged that this service be reinstated.
