KUALA LUMPUR: The parking sector is finally making a comeback after being badly impacted in 2020 and 2021 by the Covid-19 outbreak,
Parking is what keeps parking operators, building owners, manufacturers of parking equipment, and solution providers afloat.
A large number of them began to bleed red ink when the pandemic struck.
Brick-and-mortar stores have suffered due to e-commerce, the rise of ride-hailing, and post-pandemic work trends, which have reduced the number of people driving into urban regions on a daily basis.
However, growth has resumed this year, in part due to pent-up demand and adjustments made by operators, such as offering services for the expanding ride-hailing business and the emergence of electric vehicles, such as charging or vehicle maintenance.
Alex Chin Wing Wah, executive director and co-founder of Matrix Parking Solution Holdings Bhd, is optimistic about the future.
"The outlook for the market is favourable. Since the conditional MCO was removed in September 2022, the industry has been performing better. This year, a lot of companies require their employees to return to work, which has increased the use of our parking lots. On our end, there has been a significant improvement," he told the New Straits Times.
"Business in the automotive sector is booming. Undoubtedly, there will be more traffic and more cars coming into buildings. People are seeking bays to park their cars, which is connected to our line of business," he said.
According to Chin, the company expects higher revenue in financial year 2023 (FY2023) as a result of more people using its parking spaces.
He said after the MCO was lifted last year, the company was able to acquire more than 35 contracts for parking facilities.
"These are all not reflected in our FY2022 results. The profits will show up in FY2023. With double-digit growth in revenue, we anticipate being profitable this year. We have also secured over 15 new contracts in the first half of the current year, so our earnings will likely increase," he added.
Matrix Parking's revenue increased by 62 per cent to RM9.9 million for FY2022 compared to the prececding year.
However, compared to a net profit of RM874,000 in FY2021, the company saw a net loss of RM535,000 in FY2022.
Chin said Matrix Parking is now one of Malaysia's top 10 players, and he aims to make it one of the top three companies.
He intends to accomplish this by putting out more bids for parking contracts, investing in R&D to enhance the parking system, and forming partnerships with small parking operators.
"We wish to establish our company as a one-stop parking provider and search for new markets. We have secured new contracts in Langkawi, Cameron Highlands, Genting Highlands and Labuan. We want to have a significant presence throughout Malaysia," he said.
Chin said in the parking industry, there is a sizable cake to be shared by all the stakeholders.
According to him, the total revenue of Malaysia's top five players exceeds RM300 million.
"There are many opportunities for growth because new structures, including shopping malls, office towers, residential complexes, and industrial buildings, are constantly being built," he added.