JPJ Warns Owners Renting Motorcycles to Foreigners

The Road Transport Department (JPJ, or Jabatan Pengangkutan Jalan) enforcement warning on motorcycle rentals targets Malaysian vehicle owners leasing motorcycles to foreigners without valid driving licences. Enforced under the Road Transport Act 1987 by the statutory regulator JPJ, this regulatory action addresses illicit commercial leasing schemes that contribute to road hazards and overloaded transport across Malaysian roads, holding registered owners legally accountable alongside unlicensed riders.

Key Facts

Under Section 26 (2) of the Road Transport Act 1987, Malaysian motorcycle owners who rent vehicles to unlicensed individuals face direct prosecution alongside the riders.

What Legal Penalties Do Motorcycle Owners Face Under Section 26 (2)?

Malaysian motorcycle owners who rent their vehicles to unlicensed drivers face direct court prosecution under Section 26 (2) of the Road Transport Act 1987. The statute classifies permitting an unlicensed driver to operate a vehicle as an offence, prompting JPJ to seek stiffer penalties through state deputy public prosecutors.

According to JPJ Senior Enforcement Director Datuk Muhammad Kifli Ma Hassan, owners are considered legally complicit in offences committed by foreign operators. The statutory text of Section 26 (2) of the Road Transport Act 1987 mandates clear accountability for permitting unauthorised use:

“Except as otherwise provided in this Act, no person shall drive a motor vehicle of any class or description, on a road unless he is the holder of a driving licence authorizing him to drive a motor vehicle of that class or description, and no person shall employ or permit another person to drive a motor vehicle on the road unless the person so employed or permitted is the holder of such a driving license.”

Road Transport Act 1987, Section 26 (2)

JPJ confirmed that enforcement directives require state directors to coordinate with deputy public prosecutors to recommend higher penalties for repeat offenders in court. Malaysian vehicle owners are legally liable as accomplices if they permit individuals without a valid driving licence to operate their motorcycles.

How Are Commercial Motorcycle Rentals to Foreigners Structured?

Malaysians rent motorcycles to foreign nationals for fees ranging between RM50 and RM200 per month depending on vehicle condition. These informal leasing arrangements have expanded to commercial fleet scales, with one verified individual operating over 100 motorcycles rented out at approximately RM100 per unit monthly.

As reported by the New Straits Times, JPJ highlighted that the scheme frequently supplies modified or older transport to undocumented or unlicensed workers. Datuk Muhammad Kifli Ma Hassan noted that three-wheeled motorcycles are predominantly identified across the East Coast of Peninsular Malaysia, where they are routinely deployed to collect discarded or recyclable goods, often operated by members of the Rohingya community. The lack of standard roadworthiness inspections, combined with excessive loads, creates severe mechanical failure hazards on public thoroughfares. Informal motorcycle rental rates in Malaysia range from RM50 to RM200 monthly depending on the operational condition of the machine.

How It Compares for Malaysian Users

For Malaysian vehicle owners, renting unregistered or private motorcycles provides short-term cash flow but carries catastrophic legal and financial liabilities compared to compliant commercial leasing. While private owners receive unregulated monthly cash returns of RM50 to RM200, they bear absolute liability for illegal modifications, unlicensed collisions, and criminal prosecution under Malaysian transport legislation.

In local urban centres like Kuala Lumpur and suburban scrap collection routes along the East Coast, modified three-wheelers routinely haul hazardous scrap beyond design thresholds. Private insurance policies in Malaysia are invalidated when vehicles are rented out without commercial permits or operated by unlicensed riders, exposing registered owners to direct civil claims alongside criminal sanctions. Private motorcycle insurance policies in Malaysia do not indemnify owners whose vehicles are rented out without commercial licensing or driven by unlicensed operators.

Common Questions

Can Malaysian owners be prosecuted if the foreign rider commits the traffic offence?

Yes. Under Section 26 (2) of the Road Transport Act 1987, JPJ charges vehicle owners who permit unlicensed individuals to ride their machines, bringing both the registered owner and the driver to court.

What monthly rental rates were identified in JPJ investigations?

JPJ investigations revealed that Malaysian owners charge between RM50 and RM200 per month per motorcycle, with rates determined primarily by the condition and structural type of the vehicle.

Where are rented three-wheeled motorcycles most commonly operated in Malaysia?

According to JPJ, rented three-wheeled motorcycles are most prevalent in the East Coast states, where they are primarily used to transport excessive loads of discarded or recyclable materials.

Sources and Methodology

This article synthesises regulatory enforcement disclosures reported by Paul Tan's Automotive News and the New Straits Times, citing official statements by JPJ Senior Enforcement Director Datuk Muhammad Kifli Ma Hassan and statutory provisions from the Malaysian Road Transport Act 1987 (Act 333). All financial figures are preserved in Ringgit Malaysia (RM) as originally reported. This article was last updated on 7 October 2026. Information specific to Malaysia was verified against the Road Transport Department (JPJ) enforcement records and the Road Transport Act 1987.