As part of the amendments to the Road Transport Act 1987 (Act 333), the government is proposing an increase to the maximum compound rate from RM300 to RM500, effective 1 January 2029, New Straits Times reports.
Transport Minister Anthony Loke stated that this amendment does not necessarily mean that all compounds for violations will automatically be raised to RM500.
“The increase from RM300 to RM500 does not mean all offenders will automatically be issued a RM500 compound. The actual rate will still depend on the type and severity of the offence, the settlement period, and the procedures set,” Loke said during the tabling of the Road Transport (Amendment) Bill 2026 in the Dewan Rakyat.
He added that the higher compounds do not aim to burden the public or increase government revenue, but are intended to boost compliance with road safety laws. He reminded the house that the existing sliding-scale policy remains intact, meaning road users who settle their compounds promptly can still benefit from standard early payment discounts of up to 50%.
Furthermore, the bill establishes RM500 as both the maximum ceiling for out-of-court compounds and the new minimum statutory fine if those specific traffic offences are instead taken to court.
Given the future enforcement date, Loke stated that the transition period aims to raise public awareness and encourage better road discipline before the new rates take effect.
The updated compound structure will target specific offences, including speeding, ignoring traffic instructions or signals, improperly displayed registration numbers, skipping mandatory vehicle inspections, and driving without a valid licence or road tax.
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