Open tender system for outdoor ads starting 2019

KUALA LUMPUR (Nov 13): Starting in 2019, all applications for outdoor advertisements will be conducted through an open tender system.

The Star reports that Kuala Lumpur City Hall (DBKL) Licensing and Petty Traders Development Department director Anwar Mohd Zain said the new regulations only applied to billboards and unipole outdoor advertisements.

“In the past, advertisers were only required to pay an annual licensing fee according to the size of the billboard.

“With the new ruling, we will include a rental fee in addition to the fixed licensing fee for the advertisers through an open tender system. This will ensure transparency in the arrangement and balanced profit for both the advertisers and DBKL,” Anwar was quoted as saying by the daily.

He also said that the fee charged by advertisers would often exceed the licensing fee paid to DBKL by hundreds of thousands of ringgit.

According to Anwar, since November, DBKL has issued 224 notices for the removal of advertisement structures on government land, land reserves and private land.

There were to be no licence renewals and companies have 60 days to remove their advertisements following expiration of the licence.

Companies will not be able to renew their licences until 2019.

“Through this new enforcement, we hope to see a 15% increase in revenue for DBKL that we can utilise for the city’s benefit,” said Anwar.

In 2017, late payments by advertisers meant that RM4.6mil in revenue from the licensing fee could not be achieved.

More details will be released once a complete consensus is reached about the matter.

Of 440 advertisement structures around Kuala Lumpur, approximately 200 structures have been installed without licence and authorisation.

In early November, DBKL began removing illegal billboards and unipoles as per the Advertisement By-Laws (Federal Territory) 1982.

It begun in Jalan Kuching and will continue in Bulatan Kampung Pandan and Jalan Cheras.