Motorists could soon face higher traffic compounds under a proposed amendment to the Road Transport Act 1987, with the government seeking to increase the maximum compound rate from RM300 to RM500 beginning January 1, 2029.
Transport Minister Anthony Loke said the proposed increase is aimed at improving compliance with road regulations and strengthening deterrence against traffic offences, rather than generating additional revenue for the government.
“The increase from RM300 to RM500 does not mean every offender will automatically receive a RM500 compound,” Loke told the Dewan Rakyat while tabling the Road Transport (Amendment) Bill 2026 for its second reading.
He explained that the amendment would only raise the maximum allowable compound amount, while the actual fine imposed would continue to depend on the nature and severity of the offence, settlement period and existing enforcement procedures.
Among the offences that could be subjected to the revised compound rates are improper display of vehicle registration numbers, operating a vehicle without a valid road tax, driving without a valid licence, speeding and failing to comply with traffic instructions or signals.
The proposed changes would also cover offences involving vehicles that fail to undergo mandatory periodic inspections.
Loke said the delayed implementation date would provide sufficient time for public awareness campaigns and help encourage better driving habits among road users.
In a major move against illegal racing, the Bill also proposes the introduction of a new Section 42A, which would make street racing and road speed testing standalone offences under the law.
The amendment would allow authorities to take action against offenders without having to wait for accidents, injuries or fatalities to occur.
Under the proposed law, first-time offenders caught participating in illegal races or speed tests could face fines ranging from RM2,000 to RM10,000, imprisonment of up to two years, or both.
Repeat offenders would face harsher punishment, including fines of between RM5,000 and RM20,000, jail terms of up to five years, or both.
Meanwhile, amendments to Sections 16 and 17 of the Act would not result in higher road tax fees or the introduction of new charges.
Instead, the changes are intended to ensure that motor vehicle licence fees are based on where vehicles are primarily used.
For example, vehicles operating in Peninsular Malaysia would continue to be charged according to Peninsular rates, while vehicles based in Sabah, Sarawak, Labuan or Langkawi would remain subject to their respective regional rates.
Loke said the move would create a fairer licensing system and prevent revenue leakage caused by vehicle owners renewing licences in lower-rate regions despite primarily using their vehicles elsewhere.
The Bill also seeks to modernise regulations involving electric vehicles (EVs).
Amendments to Section 10 would allow all electric vehicles to be properly registered using unique electric vehicle serial numbers and chassis numbers, recognising that EVs do not have traditional engine numbers like conventional vehicles.
According to Loke, the broader amendments are designed to accelerate the digitalisation of Road Transport Department (JPJ) services, including the use of electronic notices and documents, while strengthening enforcement against serious and repeat traffic offenders.
The proposed legislation also introduces updated provisions to address illegal racing, modified vehicles, special-purpose vehicles, foreign-registered vehicles and cross-border transportation issues as Malaysia’s transport landscape continues to evolve.
