{"id":1474,"date":"2024-11-04T09:45:42","date_gmt":"2024-11-04T01:45:42","guid":{"rendered":"https:\/\/www.timeteccloud.com\/blog\/?p=1474"},"modified":"2024-11-25T09:27:46","modified_gmt":"2024-11-25T01:27:46","slug":"challenges-facing-the-malaysian-parking-industry-in-2025","status":"publish","type":"post","link":"https:\/\/www.timeteccloud.com\/blog\/challenges-facing-the-malaysian-parking-industry-in-2025\/","title":{"rendered":"Challenges Facing the Malaysian Parking Industry in 2025"},"content":{"rendered":"\n

The Malaysian Parking<\/a> Industry in 2025 is set to be impacted by three \u201cEs\u201d: E-Invoice, E-Wallet, and E-Plate. Here\u2019s how each will shape the industry:<\/p>\n\n\n\n

1. E-Invoice<\/a><\/strong><\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

The mandatory implementation of E-Invoice by the Inland Revenue Board Malaysia (IRBM) or Lembaga Hasil Dalam Negeri (LHDN) caused ripples in 2024, as it initially only affected large corporations, with a 6-month extension for individual E-Invoice requirements. However, a full-blown impact is expected in 2025, when E-Invoice adoption becomes mandatory for all businesses, large or small, from 1st July.

Parking is one of the industries that will be hard-hit<\/a>. With its high transaction volume, small fees, diverse parking types, varied payment methods, and mixed manned and unmanned environments, adopting E-Invoice will be complex. This brings added difficulty, higher administrative costs, and increased implementation expenses.

Some parking operators may find that their current foreign or local systems are not supportive of E-Invoice and may need to use middleware to comply with E-Invoice requirements or switch to an E-Invoice-compliant parking system<\/a> if the investment is feasible. Operators will also need to familiarize themselves with the new processes and consider whether directly integrating their parking system with the LHDN MyInvois portal or handling submissions through a back-end accounting system \u2013 or perhaps both \u2013 is more efficient.

E-Invoice is set to be one of the biggest challenges for the parking industry in 2025. Since the MyInvois portal is cloud-based, E-Invoice implementation will likely also accelerate cloud parking solution adoption in 2025.<\/p>\n\n\n\n

<\/div>\n\n\n\n

2. E-Wallet Direct for LPR<\/a><\/strong><\/p>\n\n\n\n

License Plate Recognition (LPR) was introduced to the parking industry as a touchless method for an improved parking experience a few years ago, adding more cashless payment options. For example, users could pay before exiting by scanning a QR code, leading them to an online payment page with multiple options, or they could pay at the exit by tapping a TnG card, credit, or debit card, or by using an auto pay machine before exiting.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

However, each of these methods has its drawbacks. Intermittent payments or tapping at the exit detract from a seamless, touchless experience.

The answer to this shortcoming is E-Wallet Direct. This mechanism directly integrates the LPR parking system with eWallets<\/a>. Registered eWallet users can enter and exit car parks touchlessly and cashlessly, with parking fees deducted directly from their eWallet, providing a truly seamless experience.

We expect E-Wallet Direct for LPR to start gaining momentum in 2025, though it will be somewhat delayed due to the late participation of TnG eWallet and the smaller user base of the participating Setel eWallet. With improved LPR algorithm accuracy over the years, LPR popularity has increased, with an estimated 300 parking sites installing LPR in 2024 alone, and this figure is expected to double in 2025. We anticipate more eWallet providers will jump on the bandwagon.<\/p>\n\n\n\n

<\/div>\n\n\n\n

3. E-Plate<\/strong><\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

The national E-Plate was unveiled in 2024 and is currently mandatory for new electric vehicles (EVs). However, the market believes it will gradually replace traditional number plates as a standardized option for all vehicle types.<\/p>\n\n\n\n

Based on IDePLate technology from German company Toennjes, the new JPJ E-Plate comes equipped with several safety features to prevent forgery and fraud, including an embedded RFID<\/a> chip in the aluminum plate, embossed lettering with holographic foil, and a digital signature integrated into a QR code on the plate. Additionally, each plate (front and rear) will be paired with a separate anti-tamper RFID sticker to be installed inside the windshield for secondary identification.<\/p>\n\n\n\n

The “monopoly” and standardization of license plates aim to eliminate unregulated fancy fonts, which is good news for LPR parking systems. However, it also adds uncertainties for the parking industry due to its inconclusive policy.<\/p>\n\n\n\n

We foresee if the standardized E-Plate eventually replaces all car number plates, two main parking methods could emerge for achieving a seamless, touchless, and cashless experience: E-Wallet Direct for RFID and an enhanced version of E-Wallet Direct for LPR, or perhaps a combination of both.<\/p>\n\n\n\n

Since the E-Plate has just launched, it will take quite some time for full market adoption unless the government sets a mandatory date similar to that for E-Invoice.<\/p>\n\n\n\n

Nevertheless, we foresee that the toll and parking industries will respond positively to the E-Plate in the long run.<\/p>\n\n\n\n

<\/div>\n\n\n\n

4. Minimum Wage<\/strong><\/p>\n\n\n\n

In addition to the challenges posed by the three Es in 2025, the upcoming increase in the minimum wage from RM1,500 to RM1,700 per month, effective 1st February 2025, will present another hurdle for the parking operations industry.

To cut costs, we anticipate that more unattended parking kiosks and automated parking systems will be installed to reduce manpower needs. <\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Conclusion<\/strong>
This is how the Malaysian parking industry is set to face a transformative year in 2025. With the combined impact of the three \u201cEs\u201d and rising wage demands, parking operators will need to adapt quickly to meet these new technological and operational challenges.<\/p>\n\n\n\n

\n
Parking Consultation\/ Request Demo<\/a><\/div>\n<\/div>\n\n\n\n

03-8070 9933\u00a0\u00a0\u00a0\u00a0 |\u00a0\u00a0\u00a0\u00a0\u00a0Email<\/a>\u00a0\u00a0\u00a0\u00a0 |\u00a0\u00a0\u00a0\u00a0\u00a0www.timeteccloud.com<\/a>\u00a0\u00a0\u00a0\u00a0 |\u00a0\u00a0\u00a0\u00a0\u00a0Interest Form<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

The Malaysian Parking Industry in 2025 is set to be impacted by three \u201cEs\u201d: E-Invoice, E-Wallet, and E-Plate. 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