The Malaysian Parliament’s Dewan Rakyat passed the Road Transport Amendment Bill 2026 to empower courts to order drivers convicted of serious traffic offences resulting in death or serious injury to pay compensation to victims or their lawful next of kin based on case facts, Transport Minister Anthony Loke said [1, 2, 3].
The amendment applies to offences including dangerous driving and illegal racing that cause fatalities or serious injuries. “Drivers who cause deaths through dangerous driving and illegal racing will not be treated as ordinary traffic offenders. Instead, they will face the heaviest legal action commensurate with the circumstances of the case,” Minister Loke said [1, 2, 3].
The compensation factors include severity of injuries or death, losses suffered, and the offender's ability to pay [1, 2, 3]. Even if court-ordered compensation is insufficient, victims can pursue further civil claims to recover the balance unless barred by the amendment, said Professor Dr Law Teik Hua of Universiti Putra Malaysia’s Road Safety Research Centre [4].
Practical challenges remain in collecting compensation from insolvent offenders. Courts may order installment payments or asset seizures, but Malaysia currently lacks a government fund for victims of uninsured or insolvent drivers [4].
The bill also introduced a specific offence for illegal racing under new Section 42A. First-time illegal racing offences carry fines from RM2,000 to RM10,000 and/or up to 2 years imprisonment. Second or subsequent offences carry fines from RM5,000 to RM20,000 and/or up to 5 years imprisonment [1, 2, 3].
Minister Loke emphasized the new law allows action against illegal racing participants even before any accident occurs. “Previously, penalties could only be imposed after an accident had occurred, but now any party involved in illegal racing activities can be charged and convicted even before an accident takes place,” he said [2].
The Ministry intensified enforcement operations against illegal racing, including one in Johor where 16 individuals were arrested and 260 motorcycles seized [1, 2].
A notable recent case is a June 1, 2026 multi-vehicle crash at KM27 Jalan Renggam-Simpang Renggam in Johor, which killed five people including a family of four. The crash involved illegal racing between a 19-year-old Mercedes A250 driver and his 22-year-old brother driving a BMW 530e. The BMW lost control and collided with four vehicles. The BMW driver died en route to hospital; the Mercedes driver was arrested and identified as a student studying in Singapore [1, 2, 3].
Professor Law said the compensation scheme combined with criminal penalties should improve deterrence and offer faster relief to victims compared to civil suits. "The twin threat of criminal penalties and direct financial liability would force drivers to be more cautious," he said. However, he noted the real impact depends on consistent enforcement, active prosecution and public awareness of the steep financial obligations [4].
The government continues to pursue enforcement actions and judicial proceedings related to road safety offences, with the new amendment law in effect to hold offenders more accountable and compensable for damages caused.
