Luxury Car Owners Skipping Road Tax and Insurance to Save Money

A growing number of luxury car owners in Malaysia are reportedly choosing not to renew their road tax and insurance, claiming that the penalties for non-compliance are far cheaper than the cost of staying legal. This alarming trend was highlighted by senior lawyer Muhammad Hasif Hasan, who shared that one luxury car owner admitted to opting for a maximum RM3,000 fine instead of paying more than RM5,000 annually for road tax and over RM10,000 for insurance.

Widespread Violations Exposed in JPJ Crackdowns

This issue gained attention during the Road Transport Department’s (JPJ) operations Ops Luxury and Ops Luxury 2.0, which uncovered shocking levels of non-compliance. In just the latest operation, 53 luxury vehicles including Rolls-Royce, Lamborghini, Aston Martin, and BMW models were seized for not having valid insurance or road tax, or for using unregistered plates. A previous operation in June had already netted 101 vehicles.

Legal Experts Warn of Dangerous Consequences

Hasif warned that driving without insurance places not only the driver but also other road users at serious risk. If an uninsured driver causes an accident, victims may be left without any compensation. Legal proceedings for such cases can be costly, ranging from RM10,000 to RM40,000 in fees alone, and there’s no certainty the victims will ever be repaid.

Calls for Harsher Penalties and Legal Reform

Transport policy experts, including the Road Safety Expert Association (PPKJR), argue that the current minimum fine of RM300 is too lenient, especially for the wealthy. PPKJR founder Jamil Manan Supri compared the fine to a mere “parking fee” that does nothing to deter the rich. He suggested higher penalties and more proactive enforcement to prevent repeated violations.

Public Frustration Over Legal Loopholes

Social media users and the general public have expressed frustration, accusing the system of enabling the wealthy to flout the law without meaningful consequences. Online comments criticized how the outdated Road Transport Act allows rich vehicle owners to treat traffic fines as trivial expenses.

Enforcement Alone Not Enough Without Legal Updates

Despite repeated enforcement operations, the issue continues due to outdated legal provisions and disproportionate penalties. Unless the authorities revise the law and increase the cost of non-compliance, luxury car owners may continue to exploit the system at the expense of public safety.


Akmal Azhar

Car admirer, honesty is the best policy.

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