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.