RM500 Saman & Jail For Racing? 5 Massive Traffic Law Changes Coming To Malaysia

Transport Minister Anthony Loke tables proposed overhauls to Malaysia's traffic laws, including massive fines for tontos and standalone charges for illegal racing. (Photo: BERNAMA)

If you have a habit of driving with a heavy right foot, forgetting to renew your road tax, or brushing off traffic compounds, it's time to pay close attention.

Transport Minister Anthony Loke just tabled the Road Transport (Amendment) Bill 2026 for its second reading in Parliament yesterday, proposing a staggering 41 changes to our existing traffic laws. From studying direct cash payouts for accident victims to cracking down on tontos, the government is seeking to completely change how road crimes are handled in Malaysia.

Before these rules hit our highways, here is the ultimate cheat sheet breaking down the biggest proposed updates currently being debated:

1. The maximum traffic compound is jumping from RM300 to RM500 

Starting January 1, 2029, the maximum limit for compoundable offences will officially increase to RM500. The government has stated this nearly 3-year transition buffer period is meant to raise public awareness and build road discipline rather than just burdening your wallet.

The proposed changes will also increase the minimum statutory court fine for specific offences like speeding and driving without a valid licence from RM300 to RM500.

Will you automatically get slapped with an RM500 saman?

No. Anthony Loke clarified that the actual rate will still depend on how severe your offence is, how fast you settle it, and standard police/JPJ procedures. Offences tied to this new maximum cap include speeding, driving without a valid licence, using a vehicle without a valid road tax, improper plate numbers, and failing to obey traffic signals.

2. "Street Racing" is now a specific standalone crime (Even if no accident happens!) 

Currently, illegal racing and speed testing are complicated to prosecute because they are bundled under generic dangerous driving laws. The proposed Section 42A changes everything by making illegal racing an official, standalone offence.

This gives authorities the power to arrest and charge racers immediately on the spot, without needing to wait for a crash, injury, or fatality to occur.

• First-time offenders: A fine between RM2,000 and RM10,000, up to 2 years in prison, or both.
• Repeat offenders: A fine between RM5,000 and RM20,000, up to 5 years in prison, or both.

3. Drunk drivers could be forced to pay direct compensation to victims and heirs 

Drunk driving cases that result in death will still be heavily prosecuted, with the Attorney General holding absolute constitutional power under Article 145(3) to decide the exact charges based on the specific facts and merits of the case.

However, the Ministry of Transport is currently looking into a proposal that could change everything: a potential amendment to Act 333 that would allow criminal courts to order convicted drivers to pay financial compensation directly to the victims or their legal heirs.

Loke emphasized that this is a policy proposal being reviewed to create an extra legal shield for families left behind, and it will not replace or affect your right to claim standard third-party car insurance or file separate civil lawsuits.

4. Massive war declared on "Tontos" with fines up to RM50,000 

Tontos (informers who spy on enforcement officers, follow JPJ trucks, and alert overloaded commercial vehicles to help them evade roadblocks) are facing a massive legal smackdown.

Under the newly proposed Section 110B, tonto activities will be classified as an arrestable offence. Anyone caught interfering with, threatening, assaulting, tracking enforcement vehicles, or leaking operation info faces:

• A massive fine between RM10,000 and RM50,000
• A prison sentence between 1 to 5 years, or both

5. Caught driving while your licence is suspended? You face 3 years in jail 

If you think a suspended driving licence is just a suggestion, think again. The government is drastically tightening Section 32 to stop disqualified drivers from sneakily getting back behind the wheel.

• Old Penalty: Up to 1 year in prison or a fine up to RM5,000.
• New Proposed Penalty: Up to 3 years in prison or a fine ranging from RM3,000 to RM10,000.

Two Quick Extra Updates For EV Owners & Out-Of-State Road Tax Renewals

EV Registrations Get Easier: A new amendment to Section 10 clarifies that all Electric Vehicles (EVs) can be legally registered using their electric motor serial numbers and clear chassis numbers, since EVs don't have traditional engine blocks like conventional cars.

No More Road Tax "Leakage": Amendments to Sections 16 and 17 mean that vehicle licence fees will now track the actual area of vehicle usage. If you live and drive in Peninsular Malaysia, you can no longer renew your road tax using cheaper Sabah, Sarawak, Labuan, or Langkawi regional rates to exploit loopholes. Don't worry, actual residents of East Malaysia and tax-free islands will see their original lower rates remain completely unchanged.

Share Your Thoughts!

What do you think of these new traffic rules being proposed? Do you think increasing the standard compound limit to RM500 will finally make Malaysian road users follow the rules, or is the new "Tonto law" the best move the ministry has made so far?

Let us know your opinions in the comments section below! 

Sources: HM | NST | NST | TheEdge