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Malaysia’s RM300 Traffic Fine Is So Low, Some Drivers Would Rather Pay It Than Buy Insurance; That’s About To Change

Malaysia’s RM300 Traffic Fine Is So Low, Some Drivers Would Rather Pay It Than Buy Insurance; That’s About To Change

Malaysia is overhauling its road traffic laws after acknowledging that the current RM300 maximum fine has become so ineffective that some drivers find it cheaper to skip road tax and insurance altogether.

In Brief
  • Malaysia's RM300 maximum traffic fine is so low that some drivers find it cheaper to skip road tax and insurance entirely.
  • The Road Transport (Amendment) Bill 2026 introduces tiered fines and ANPR cameras to catch uninsured vehicles without roadblocks.
  • New provisions will criminalise tipping off illegal street racers about enforcement operations, targeting the wider network, not just racers.

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Transport Minister Anthony Loke has a problem.

The country’s maximum traffic fine — RM300 — has become so cheap that some drivers have quietly done the maths and decided it’s more economical to skip road tax and insurance altogether, and simply pay the fine if caught.

“That’s a system that has stopped working,” Loke said at a media briefing on Thursday (18 June).

His solution: a sweeping amendment bill that goes well beyond just raising the numbers.

The Road Transport (Amendment) Bill 2026 will be tabled in Parliament on Monday (22 June) for its first reading, with a second reading and debate scheduled for Tuesday.

If all goes smoothly, the bill could be passed by Tuesday evening (23 June).

The Camera That Replaces The Roadblock

Not every traffic offence will be bumped to the maximum.

Loke was clear that the revised fines will be tiered — and even then, a transition period of at least two years is expected before the new rates take effect.

Perhaps the most significant change isn’t about fines at all.

The Road Transport Department (JPJ) has completed the tendering and system integration for an Automatic Number Plate Recognition (ANPR) system.

Within months, enforcement vehicles will be fitted with cameras capable of scanning surrounding cars in real time — identifying instantly whether a vehicle has valid road tax and insurance, without stopping anyone.

No more roadblocks, no more officers standing at a window.

Loke said this also reduces direct contact between enforcers and drivers — addressing long-standing concerns about integrity and abuse of power at the point of enforcement.

As it is, ANPR is already being tested on Malaysian highways as a stepping stone toward a seamless barrier-free Multi-Lane Free Flow (MLFF) system.

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Targeting The Tip-Off Network

The bill also takes aim at illegal street racing — not just the racers, but the people who help them evade the law.

A new provision will make it an offence to tip off illegal racers about incoming enforcement operations.

It is a recognition that dismantling the activity requires cutting off the network around it, not just catching the participants.

The bill was reviewed by a special parliamentary select committee — with opposition MPs at the table from the start, leaving little room for dissent when it reaches the floor.

Beyond fines and enforcement technology, the amendment also covers:

  • Regulation of new micro-mobility devices such as e-scooters
  • Offences related to false information and forged or cloned vehicle number plates
  • Obstruction of enforcement operations

A second round of amendments is expected later this year, focusing on compensation for victims of road accidents caused by drunk, drug-impaired, or reckless drivers.

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Parts of this story have been sourced from Oriental Daily.


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