Business · Malaysia Bureau
Motorists causing drug, alcohol accidents to compensate victims under new law
Malaysia will amend the Road Transport Act to require drivers involved in accidents linked to drug or alcohol use to pay compensation to victims, Prime Minister Anwar Ibrahim announced as part of Budget 2027.
LSN Malaysia ·
The government will move to strengthen accountability in road safety by making motorists legally responsible for victim compensation when drug or alcohol impairment contributes to accidents, Anwar said during his budget presentation. The proposed amendment to the Road Transport Act aims to place financial liability directly on drivers whose substance use causes harm to others on Malaysian roads. This measure reflects growing concern over impaired driving incidents and seeks to deter dangerous driving behaviour while ensuring victims receive restitution. The change is expected to be implemented as part of broader road safety initiatives outlined in the 2027 budget framework. Officials did not immediately provide details on the compensation mechanism or timeline for enacting the legislative changes.