Malaysia's Parliament passed the Road Transport (Amendment) Bill 2026 on June 24, officially raising the maximum compound for selected traffic offences from RM300 to RM500, effective January 1, 2029 [1]. The increase targets over 700 compoundable offences, including speeding, illegal parking, failure to display vehicle registration, driving without a valid license, and failure to obey traffic signs or undergo roadworthy inspections [2, 3, 4, 5, 6, 7].
The new maximum compound amount of RM500 will not automatically apply to all offences or offenders. Transport Minister Anthony Loke said the rate will depend on the type and severity of offence, how promptly the compound is settled, and enforcement policy. He explained, “Not all offences will be slapped with a RM500 compound...the quicker you pay the less you’d have to” [8, 9]. The bill allows a grace period until 2029 to raise public awareness and encourage better driving behaviour [2, 8, 10, 7, 1].
A new Section 42A specifically criminalizes illegal street racing and speed trials on public roads, allowing enforcement without waiting for an accident to occur [2, 3, 8, 4, 5, 6, 7, 11, 1]. First-time offenders face fines from RM2,000 to RM10,000 or imprisonment up to two years, or both. Repeat offenders face higher fines of RM5,000 to RM20,000 and/or up to five years’ imprisonment [2, 8, 5, 7, 11, 1]. Transport Minister Loke stressed the aim is to be firm on offences that jeopardize road safety while easing public services and improving enforcement efficiency through digitalisation [2].
The amendments also target “tonto” activities, or illegal spotters aiding street racers, granting powers to disperse gatherings, seize vehicles and detain offenders [4, 6]. Penalties for driving while disqualified increased to up to 3 years’ jail and RM10,000 fine, doubling previous limits [11]. New rules regulate micromobility vehicles, setting speed limits, minimum user ages, permitted routes and enforcement powers [4, 6, 11].
The legislation does not increase vehicle license fees but adjusts them to better reflect actual vehicle usage across Peninsular Malaysia, Sabah, Sarawak, Labuan and Langkawi [8, 7]. The government emphasized the amendments seek to improve road safety and provide a stronger deterrent, not to raise revenue from fines [2, 8, 10, 7, 1, 9]. The digitalisation of Road Transport Department (JPJ) services is expected to improve efficiency and service delivery [2, 5, 7].
The new compound rates and penalties will come into effect on January 1, 2029, starting the next phase of enforcement under the amended law [2, 8, 10, 7, 1].
