The Penang Island City Council (MBPP) has cancelled 29,240 compound notices issued through its Automatic Number Plate Recognition (ANPR) enforcement system and will refund RM266,160 to motorists who had paid.
Penang local government committee chairman Jason H’ng Mooi Lye said the state government acknowledged the weakness of the ANPR parking enforcement, which penalised motorists who only stopped briefly to drop off or pick up passengers. “The state government acknowledges that the system cannot determine whether there is a person inside a vehicle at the time,” The Star reported him as saying at a press conference at Komtar on 10 August.
“To avoid disputes, all compounds issued through the ANPR system for parking outside designated bays will be cancelled,” he said, adding that future enforcement would be carried out manually by officers assessing the situation on the ground.
H’ng said the move did not apply to areas where parking or stopping was prohibited, or where vehicles caused an obstruction. He said the state took seriously the public feedback over ANPR parking enforcement that was introduced in April 2025.
The decision followed public criticism of the system’s limitations. According to Malay Mail, vehicles stopped to drop off passengers were also issued summonses for illegal parking, as the ANPR system could not detect whether drivers and passengers were in the vehicles.
H’ng said the ANPR system would be reviewed and no longer used for enforcement. “It will be used only to monitor but enforcement will be conducted manually after this,” he said.
Motorists who paid ANPR compounds for parking outside designated bays can submit refund claims to MBPP until 30 September. Applicants must provide the compound payment receipt and a copy of their bank statement. Documents can be submitted at the refund claim counter on Level 3 of Komtar or by e-mail to [email protected]. Those who paid through the PSP app will receive automatic refunds credited to their PSP wallets.
Motorists who received ANPR compounds for failing to pay parking fees but had actually made payment within 10 minutes after the compound was issued can also appeal to MBPP for cancellation. The ANPR system, which used patrol vehicles equipped with cameras to capture registration plates, had been issuing between 7,000 and 10,000 alleged parking violations a month.


