KUALA LUMPUR (Sept 12): ITMAX System Bhd (KL:ITMAX) said on Thursday that its subsidiary has been appointed to operate a parking system in Tangkak, by the district council.

The appointment of Southmax Sdn Bhd covers the management of 5,113 street parking bays which are currently gazetted by Tangkak District Council for 15 years, the company said in an exchange filing. The contract began on Sept 1, 2024 and will end on Aug 31, 2039, it said.

“This marks another significant step for us in expanding our smart city solutions,” ITMAX managing director and chief executive officer William Tan said in a statement. “Our application, Parkmax@JOHOR, plays a key role in the digitalisation of parking operations in Johor.”

The value of the contract was not disclosed, though the company said the contract will be run on a revenue-sharing model. Southmax will receive 70% of the revenue generated from parking collections and parking compounds in the Tangkak district.

The latest parking contract, its third in Johor, further expands ITMAX’s presence in the southern state. The company had earlier won similar projects in Iskandar Puteri and Kulai, as the company sharpens its focus in Johor to replicate its successes in getting contracts in Kuala Lumpur.

The company’s most recent contract win was on Aug 16 with the Kuala Lumpur City Hall, ordering RM539.46 million worth of surveillance cameras and video signages in Kuala Lumpur.

There has been increased users and awareness of parking fee payments in Johor since the launch of its parking system, Tan said.

“As we continue to build on our momentum, we look forward to expanding our smart parking solution to cities across the Johor state,” he added.

Shares of ITMAX did not react to the contract announcement, and were up two sen or 0.6% from Wednesday to RM3.27, giving the company a market capitalisation of RM3.36 billion.