Why do we need the AES?

The sole objective of the AES and other speed camera operations by the government is to cutthe number of accidents and save lives on the roads.

The AES uses automated cameras to capture images of vehicles going over the speed limits andbeating the red lights. The images are immediately sent to a control centre to be processed.Road Transport Department (RTD) officials check and identify the offences before issuing thesummonses. The summonses are sent via registered mail.

What is the road accident situation in Malaysia?

Based on police statistics, there were 450,000 road accidents recorded last year with 6,877 deaths. Please refer to the Road Accident statistic page on this website for more information.

Are there warning signs on the roads about the AES?

Yes. For speeding offences, the first signboards are placed between two and three kilometres before the cameras. For traffic light offences, the warning signs are located between 50 and 500 metres.

How does the Government decide on the location of the AES cameras?

The Government determines the locations of the AES cameras based on accident-prone areas. The selection of these areas is based on accident data related to speeding and accidents at intersections that is provided by the police. The cameras cannot be arbitrarily placed.

Tender Process: Who are the service providers?

The idea for the AES was first proposed.
By November, the government identified nine local companies which were either providing AES in other countries or had technology partners providing AES at that time. They were invited to submit a Request For Proposal (RFP).
Seven submitted the RFP. But only six companies took part in the live demonstrations which were carried out for a month in June that year. The companies produced more than 63,000 images from the 43 scenarios given to them.

A technical committee consisting of various departments analysed and judged the companies’ performances with a key criterion of the ability to capture images which are admissible in court.

Who were in the technical committee?
• Malaysian Institute of Road Research (MIROS)
• Standards and Industrial Research Institute of Malaysia (SIRIM)
• Malaysian Administrative Modernisation and Management (MAMPU)
• Road Transport Department
• Attorney-General’s Chambers
• Ministry of Home Affairs
• Ministry of Works
• Royal Malaysian Police
• Computerized Vehicle Inspection Centre (PUSPAKOM)
• Malaysian Highway Authority
• Auditor-General Department
• Malaysian Anti-Corruption Commission (MACC)

Only two out of the six companies were deemed to have met the technical committee’s specifications. They were Beta Tegap Sdn Bhd which introduced the Redflex Traffic System and ATES Sdn Bhd with its ROBOT Visual System.

The first phase of the project started on September 23 with cameras installed at 14 locations in Selangor, Kuala Lumpur, Putrajaya and Perak.

Has enforcement been privatized under the AES?

No, the two service providers are only responsible for the procurement, installation, operation and maintenance of the system. The RTD is the sole government agency responsible for the identification, verification and issuance of summonses for offences under the AES.

Why didn’t the Government procure and operate the AES?

The Government studied various models of implementation of the AES in other countries including the possibility of procuring and operating it on its own. After a detailed study, the Government decided the best model would be to outsource the AES on a Build, Own, Operate and Transfer (BOOT) model.

Under this model, all costs pertaining to the procurement, installation and maintenance of the system are solely borne by the two service providers.

Is it true that the more summonses are issued, the two companies will reap more profits?

The amount paid to the two service providers is based on the 3-Tier formula, which limits profits earned by the companies to a reasonable level even when more summonses are issued.

Whatever the number of summonses issued, the revenue of the two service providers is capped at an Internal Rate of Return of 17 percent.

All paid summonses are channeled to the Government Consolidated Fund. Payment to the service providers is carried out by the Finance Ministry.

The 3 – Tier Formula

Tier 1
Payment for the services provided by the company is limited to RM80 million a year for each company. This is based on an amount of RM16 being paid for each valid summons up to a limit if five million summonses. Payment to the companies is subject to the amount collected from the summonses paid.
Tier 2
Based on the balance from Tier 1, each company is permitted to a fee of up to RM270 million per annum. The Government will retain the same amount of on a ration of 1:1.
Tier 3
If the amount of fines collected were to exceed Tier 1 and Tier 2, the company will get a fee of only 7.5 percent of each summons paid. The Government will retain 92.5 percent of the remaining balance of the summons.