There has been a lot of news in the papers regarding billboards in MBPJ over the last one year. It is because they were the first to tackle this issue head on. Pretty soon we'll probably see MPSJ in the news, with the billboard operators mostly angry at MPSJ... But lets look at what has happened.

The history...

Pre 2009, there has been 3 categories of billboards in MPSJ areas.

1. Signage
- this is billboards under thier contract with MPSJ, special case. There have exclusivity in certain zones in exchange for constructing bus stops and pedestrian bridges throughout MPSJ.

2. Legal billboards
- This are other billboard operators who have constucted billboards legally. For a billboard to be legal, it needs
a) Planning Approval (Kebenaran Merancang) - given by MPSJ
b) Structural Permit - given by MPSJ
c) Visual License - given by MPSJ
d) If on govt land, need TOL (temporary occupancy license) - Land Office
Not many billboards comply with this, tho some actually have License without a) and b). Technically, MPSJ shouldn't have allowed for that, but somehow, pre-2008, all these were allowed.

3. Illegal billboards
- Some of these have no approval at all, and others just have visual license approved and paid.

This has not only caused a loss of income to MPSJ, but also a certain amount of chaos in moving forward.


The dilemma today...

For the purpose of this article, we will refer to the common billboard size, 10' x 40'. The normal rates (since MPSJ started in 1998 till now) is
a) Planning Approval (Kebenaran Merancang) - RM200
b) Structural Permit - RM250
c) Visual License - RM500/visual
d) Billboard license - RM5000
e) If on govt land, need TOL (temporary occupancy license) - previously RM2000, now RM3000
(there is also RM1000 deposit to MPSJ, RM5000 deposit on TOL)

Total due for 2009 is RM8950. However, which we might soon see in the papers, some of this billboard companies will be crying bloody murder, as they claim RM8950 is too expensive, killing their business. They will also claim that previously they only paid RM500 + RM1000 deposit for their billboards. They will claim that the sudden rates are an attempt to kill their rice bowl. They claim that the billboard occupancy rate is around 50% (really? I don't notice that many empty billboards around Subang Jaya, though I admit I've not gone around calculating), and per billboard they only earn an average of RM18k/yr.

Today we had a dialogue with such companies. We want to be fair, we gave them a chance to hear them out. It got pretty ugly at some points.


The future...

From 2010 onwards, based on the state guidelines, all billboards will pay 25% of their revenue to MPSJ under a profit sharing basis, instead of the respective fees.


The decision..
Considering that some billboard companies have been paying the full/proper rates before this, and are willing to do so for 2009, do we stick to this? Are we business un-friendly to do so? We don't want to destroy industries, really, that would also cost job losses and also less revenue to the goverment.