Malaysia weighs asset seizure and harsher penalties to fund traffic accident compensation

During a debate in the Dewan Rakyat, the government outlined several measures under consideration to guarantee compensation for traffic accident victims when offenders lack the means to pay. Options include seizing the assets of convicted drivers, imposing higher fines, or adding prison sentences for non-payment, mirroring provisions in other laws. The Cabinet had already approved, in principle, an amendment to the 1987 Road Transport Act that would empower courts to order compensation as an additional penalty for serious traffic offences resulting in death, severe injury, or permanent disability.

The Transport Ministry is working with other government agencies to flesh out the proposal, aiming to present the amendment to Parliament by early 2027. Lawmakers also raised the possibility of incorporating Islamic diyat principles, though officials stressed any new law would apply to all citizens regardless of religion. Additionally, the ministry plans to revamp the traffic demerit point system, which is currently seen as weak because points are only logged after a fine is paid.