Foreigners Are Using Local MyKads to Buy Vehicles—And Leaving Locals With a Legal Nightmare

JPJ officers unloading seized motorcycles following an Ops PeWA enforcement operation at their headquarters in Jalan Padang Jawa (Photo: Bernama via Astro Awani)
Think you’re just doing a "favor" by lending your MyKad or renting out your vehicle for a quick RM400–RM500 a month? Think again. What feels like a harmless side hustle is rapidly becoming a catastrophic legal trap for thousands of unsuspecting locals.
As of June 2026, the Road Transport Department (JPJ) has significantly intensified its crackdown under Ops PeWA. Warnings are a thing of the past, if your vehicle is caught in the crossfire, the legal and financial fallout is falling squarely on your shoulders.
How One "Easy Money" Rental Hands JPJ the Power to Seize Your Property Indefinitely

Selangor JPJ Deputy Director Datuk Ahmad Kamarunzaman Mehat (middle) displays a confiscated motorcycle during the Ops PeWA press conference in Shah Alam, June 18, 2026. (Photo: Bernama via MalayMail)
When you allow a foreigner to use your identity or vehicle, you aren't just an "owner"; you are an accomplice to the violations that follow. If the law catches up, you cannot simply wash your hands of the situation.
Here is the cold, hard reality of what happens when your "side hustle" meets the courtroom:
- Immediate Vehicle Seizure: Under Section 64 of the Road Transport Act 1987, JPJ is authorized to impound your vehicle on the spot if the driver lacks a valid license.
- Your Car is a Hostage Until the Fines are Paid: JPJ is now hauling vehicle owners straight to court. You, as the registered owner, are the "face" the law recognizes, making you legally liable for every single offense committed by the driver. Under current enforcement rules, you cannot reclaim your vehicle from the JPJ depot until every court-imposed fine is paid in full.
- The Insurance Nightmare: If an accident occurs and the driver is unlicensed, your insurance company will almost certainly reject your claim. You will be left to pay for total repairs and third-party damages out of your own pocket, all while your NCD is reset to zero.
Record-Breaking Spike

Illegal modifications spotted on motorcycles during a Kuala Lumpur JPJ crackdown at Taman Rekreasi Kampung Tasik Tambahan on June 25, 2026. (Photo: Bernama via MalayMail)
The trend is surging, and JPJ enforcement is moving at breakneck speed:
- 2,080 enforcement actions were recorded in just the first six months of 2026 alone massive spike compared to previous years.
- In one recent operation alone, 43 vehicles were seized, with a significant portion belonging to locals who "rented" them out.
JPJ has made its stance clear: there will be no compromise for those who facilitate these illegal activities. Whether you knowingly rented out your car or were lured into a 'sambung bayar' scheme, the legal fallout for the registered owner is identical.
Written By
Sofea Najmi
A Bachelor of English Language and Literature graduate with an obsession for the finer details. Sofea uses her background in translation to decode the technicalities of automotive innovation. She is dedicated to delivering impactful, meticulously researched articles that provide a narrative far beyond the spec sheet. LinkedIn: https://bit.ly/3C018vv
JPJ Running Numbers
KUALA LUMPUR
VRG3487
SELANGOR
BSR6314
JOHOR
JA3691J
PULAU PINANG
PSD8245
PERAK
APJ8719
PAHANG
CFH1753
KEDAH
KGH1272
NEGERI SEMBILAN
NEK9364
KOTA KINABALU
SJT1157
KUCHING
QAB2084P
Last updated 17 Jul, 2026
Fuel Price
Petrol
RON 95
RM 3.97
+1.38
RON 97
RM 4.90
+1.75
RON 100
RM 7.20
+2.20
VPR
RM 8.23
+2.00
Diesel
EURO 5 B10
RM 5.12
+2.08
EURO 5 B7
RM 5.32
+2.08
Last updated 30 Apr, 2026
Related News
No License, No Insurance, And Ketum: The Reality Behind JPJ’s Roadblock Crackdown
Over 91,000 vehicles inspected. More than 42,000 notices issued. These aren't just figures on a report, they represent a massive, ongoing shift in how authorities are policing our roads.
10-07-2026
Latest News
7 Countries With Pricier Petrol Than Malaysia (Even Oil-Rich Ones!)
Why is Malaysia's RON95 petrol price locked at RM1.99 while global rates soar? See the global price comparison and how the BUDI MADANI subsidy protects your wallet.
14-07-2026
Market Report: Malaysia's Auto Sector Is Defying All Expectations
Malaysia’s auto sector is defying expectations in 2026! Discover why vehicle registrations are nearing record highs based on JPJ data, how EV sales surged 85%, and what the new policy changes mean for you.
14-07-2026
Zeekr Is Taking Over: Malaysia’s No. 1 Premium EV Brand Is Opening 7 More Outlets Soon
Zeekr Malaysia is expanding! With 11 outlets now open and 18 planned by end-2026, the No. 1 premium EV brand is making it easier than ever to own a Zeekr.
14-07-2026
Sri Petaling’s New BYD Outlet Is A Game Changer—And It’s Getting A 'Stadium' Makeover Soon
Explore the new BYD Sri Petaling showroom—a game-changing EV hub in KL. Get the scoop on the upcoming 'stadium' delivery experience and win a RM39,900 motorcycle!
13-07-2026
RXZ Tragedy At Jabor: A Fatal Wake-Up Call For Malaysia's Convoy Culture
The fatal RXZ convoy crash near Jabor has left many in shock. We look at the details behind the accident and the growing concerns over convoy road safety.
12-07-2026
No Helmet, No Exceptions: JPJ Confirms Summonses For Viral Campaign Convoy Riders
JPJ confirms summonses for helmetless riders in viral campaign convoys. Minister Anthony Loke emphasizes that safety laws apply to everyone, regardless
10-07-2026
No License, No Insurance, And Ketum: The Reality Behind JPJ’s Roadblock Crackdown
Over 91,000 vehicles inspected. More than 42,000 notices issued. These aren't just figures on a report, they represent a massive, ongoing shift in how authorities are policing our roads.
10-07-2026
Hybrid, Petrol, Or EV? Toyota’s Latest Sales Figures Prove Malaysians Love Having Options
UMW Toyota reports 36,200 units sold in 1H 2026. Discover how Toyota's "Multi-Pathway" strategy—from petrol and hybrids to EVs—is winning over Malaysian drivers.
10-07-2026
Show More
trending_flat