Higher compound ceiling meant to educate motorists, not punish, says Loke

PETALING JAYA: Raising the maximum compound for traffic offences to RM500 is intended to deter and educate motorists rather than generate revenue, transport minister Loke Siew Fook said.

Loke said the higher compound under the Road Transport (Amendment) Bill 2026 was a ceiling, not a flat rate, and the road transport department (JPJ) retained discretion to impose lower amounts depending on the offence, its severity, the payment period, and government policy.

“It is a maximum of RM500. It does not mean the compound must be RM500. It can be lower,” he said in his winding-up speech for the ministry in the Dewan Rakyat today.

He was responding to concerns raised by several MPs during the debate that the higher RM500 compound could burden lower-income motorists.

Loke said the government had introduced an early payment incentive under the existing policy, with compounds settled promptly attracting a 50% reduction on the rate imposed.

He said the higher maximum compound would only be fully enforced from Jan 1, 2029, giving motorists time to adjust and change their driving habits.

“This is to educate and warn offenders so that they learn not to repeat road offences,” he said.

The bill passed the committee stage without amendment before being passed by voice vote on its third reading.