JPJ 2026 rules: Malaysian car owners liable for foreign drivers?

The traditional Malaysian culture of lending vehicles to friends or workers as an act of kindness has become a significant legal risk in 2026. The Road Transport Department (JPJ) has shifted its enforcement strategy to hold registered owners strictly liable for any violations committed by foreign nationals driving their vehicles. This shift is central to the intensified "Operasi Pemandu Warga Asing" (Ops Pewa), which targets the illegal use of private and commercial vehicles by non-citizens.

Since the beginning of 2026, JPJ has conducted massive nationwide operations to curb the rising trend of foreign nationals operating vehicles without proper documentation. Data from recent raids in Kuala Lumpur and Selangor reveals that a significant majority of seized vehicles, including motorcycles and heavy-duty lorries, remain registered to local Malaysians. The primary legal driver for this crackdown is Section 26 of the Road Transport Act 1987, which is being enforced with unprecedented strictness this year. 

JPJ Director Hamidi Adam has specifically warned against informal "handshake deals" or sambung bayar arrangements, where vehicles are "sold" to foreigners without a legal transfer of ownership. In the eyes of the law, the individual named on the registration grant remains the sole party responsible for the vehicle’s use.

Three Major Financial and Legal Risks for Owners

Malaysian vehicle owners now face three critical consequences if their vehicle is caught in a violation involving a foreign driver:

• Immediate Vehicle Seizure (Section 64): Under Section 64(1) of the Road Transport Act, officers are now authorized to impound a vehicle on the spot if the foreign driver lacks a valid, recognized license. Once a vehicle is towed to an impound lot, only the registered owner can initiate the recovery process, which involves settling all outstanding summonses and appearing at a court hearing.

• Heavy Fines and the Tiered Summons System: A new "tiered" system introduced in 2026 means that allowing an unlicensed person to drive your vehicle carries a fine of up to RM2,000 per offense. JPJ has moved away from seasonal discount periods, meaning these fines must be paid in full within 30 days to avoid being blacklisted from future road tax renewals.

• The Insurance and NCD Trap: This represents the most severe financial threat, as most Malaysian motor insurance policies require the driver to hold a valid license. If an unlicensed foreigner is involved in an accident, the insurer will likely reject the claim, leaving the owner personally liable for all repairs and third-party damages. Furthermore, the owner’s No Claim Discount (NCD) will be reset to 0%, leading to significantly higher premiums for several years.

While foreigners are permitted to drive in Malaysia, the burden of verification lies entirely with the vehicle owner. Drivers from ASEAN nations may use their domestic licenses, but non-ASEAN nationals must possess a valid domestic license accompanied by an International Driving Permit (IDP). It is also important to note that foreigners are strictly prohibited from holding Vocational Licenses, such as a GDL or PSV. If a foreign worker is caught driving a commercial lorry or van, the vehicle will be seized, and the business owner may face the revocation of their permit under the Land Public Transport Act (APAD).

To safeguard against these risks, owners should transition to digital or formal ownership transfers using the MyJPJ app instead of relying on informal sales. It is also essential to physically inspect the original license and passport of any friend or employee before handing over keys. Finally, business owners are encouraged to conduct regular audits of their fleet drivers to ensure all operators are fully compliant with current immigration and transport regulations.

Protect yourself from the legal and financial risks of Ops Pewa 2026 by downloading the Motorist Super App for seamless vehicle management.

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