Luxury car owners skip road tax, insurance for cheap fines
Muhammad Hasif Hasan said a product founder told him it was more cost-effective to pay a maximum fine of RM3,000 for not having the required documents than to pay the thousands of ringgit needed to renew them.
The lawyer was speaking on the Road Transport Department's (RTD) Ops Luxury 2025, which has so far seized 53 luxury vehicles without road tax and insurance.
"When I met the individual who has become an 'orang kena saman' (OKS), I asked why they came to court, and the answer was to pay a fine on road tax and insurance," Muhammad Hasif told Berita Harian.
"The person explained that it was better to pay the RM300 fine, as it was cheaper and more worthwhile compared to paying over RM5,000 for road tax and more than RM10,000 for insurance for his continental car."
The individual, who does not drive the car daily but uses it for product promotions, said that to get road tax, he must first get insurance.
"If he just continues driving without road tax and insurance and gets fined, the maximum is only RM300. It's more worth it," Muhammad Hasif said.
The lawyer added that this attitude not only breaks the law but also endangers other people's lives.
"If he were to get into an accident and hit a member of the public while having no vehicle insurance coverage, the victim or their family would not be able to make any claims," he said.
"In the end, they would have to bear all court and medical costs themselves."
Muhammad Hasif said that once a victim's family is involved in a serious accident or death due to a driver's negligence, they will face a complicated and costly legal process.
"Legal costs can reach up to RM10,000 to RM40,000, excluding medical and other court costs," he said. "In fact, even if they win the case, there's no guarantee they will receive the compensation money."
He added that if the defendant has no insurance, the plaintiff would then have to file bankruptcy proceedings to enforce the court's decision, which would also cost thousands of ringgit.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
New Straits Times
42 minutes ago
- New Straits Times
MCE eyes growth on Perodua EV, US expansion: HLIB
KUALA LUMPUR: MCE Holdings Bhd is set to enter a multi-year growth phase on the back of a landmark Perodua electric vehicle (EV) contract and expansion into the United States, according to Hong Leong Investment Bank (HLIB) Research. HLIB Research has initiated coverage on MCE with a "Buy" call and a target price of RM2.40, valuing the stock at 15 times its mid-FY27 partially diluted earnings per share of 16 sen. The firm described the auto parts supplier as a resilient, scalable play on Malaysia's shift towards high-value automotive electronics and the global 'China + N' supply chain realignment. MCE's entry into the EV segment comes through a high-value contract with Perodua to supply infotainment and advanced driver assistance system (ADAS) components, with revenue per vehicle at around RM3,000, about ten times its typical value. "With Perodua targeting an affordable launch price, we estimate MCE's annual revenue from this programme could amount to between RM39.8 million and RM59.7 million annually, or 26 per cent to 38 per cent of FY24 revenue, making it a powerful earnings catalyst," HLIB Research said. HLIB Research added that the company is accelerating its global expansion with two US wins for Nasdaq-listed Dorman in the automotive aftermarket and Michigan-based JVIS, a supplier to major original equipment manufacturers. The firm said the JVIS deal involves two multi-year mechatronics supply contracts worth RM91.7 million over five years, adding about RM18.3 million annually. Beyond automotive, MCE is expanding into new growth areas via multiple joint ventures, including a tie-up with Hong Kong's Sounding Industries to produce non-automotive products at its Johor facilities. The company also partnered with China's Nanjing Chuhang to produce ADAS mmWave radars at its upcoming Serendah plant, along with Chery-linked suppliers Cheling and Atech for participation in Chery's Malaysian localisation programme. MCE also formed a joint venture with India's Abhishek Electronics to tap into the fast-growing Indian automotive market. HLIB Research projects MCE's core earnings to grow at a compound annual growth rate of 15.8 per cent with estimated earnings for FY25, FY26 and FY27 reaching RM20.2 million, RM21.4 million and RM27 million, respectively. "FY26 growth will be driven by contribution from Dorman and the non-auto segment starting in the first half of FY26, with a stronger lift in the second half from Perodua's EV supply. "FY27 will see the full-year EV impact, maiden JVIS contribution and scaling of Dorman and non-auto has a robust balance sheet with a net cash position of RM83.6 million, equivalent to 59.8 sen a share, around 42 per cent of market capitalisation," the firm added. HLIB Research said years of investment in engineering and technology now position MCE to ride structural shifts in Malaysia's automotive industry towards localisation, high-value electronics and EV adoption, while benefiting from global supply chain diversification. It added that the company offers a resilient, scalable play on the sector's long-term transformation, anchored by stable demand from Proton and Perodua, as well as expansion via high-margin electronics, exports and strategic JVs.
Malay Mail
an hour ago
- Malay Mail
Kelantan RTD seizes 13 luxury cars worth nearly RM5 million, including Mustang, GTR in statewide crackdown
KOTA BHARU, Aug 11 — The Kelantan Road Transport Department (RTD) seized 13 of the 15 luxury vehicles worth nearly RM5 million during a statewide Operasi Khas Luxury conducted since July 1. Kelantan RTD Director Mohd Misuari Abdullah said the operation, which targeted imported and luxury vehicles, was conducted to ensure adherence to road transport laws. He said the main offences detected included expired Motor Vehicle Licences (LKM) under Section 23(1) of the Road Transport Act (RTA) 1987, no insurance coverage under Section 90(1), driving without a licence under Section 26(1), and document falsification under Section 108 of the RTA 1987. 'More worryingly, there are luxury car owners who go as far as using fake registration numbers to avoid detection by the authorities, as well as cases of luxury vehicles being driven by foreigners without valid driving licences,' he told reporters here yesterday. He said among the vehicles subjected to enforcement action were Toyota Vellfire, Toyota Alphard, BMW 523i Limousine, Ford Mustang Fastback, Mercedes E250 CGI, Nissan GTR, and several other luxury models. Mohd Misuari said owning a luxury car is not an excuse to dodge the law, and RTD will continuously monitor the conduct of the vehicle owners involved. Meanwhile, from January to July this year, Kelantan RTD recorded 10,233 offences involving expired LKMs, 8,432 cases of no insurance coverage, and 11,004 cases of driving without a licence. — Bernama
Malay Mail
2 hours ago
- Malay Mail
ChatGPT said:Kelantan RTD seizes 13 luxury cars worth nearly RM5 million, including Mustang, GTR in statewide crackdown
KOTA BHARU, Aug 11 — The Kelantan Road Transport Department (RTD) seized 13 of the 15 luxury vehicles worth nearly RM5 million during a statewide Operasi Khas Luxury conducted since July 1. Kelantan RTD Director Mohd Misuari Abdullah said the operation, which targeted imported and luxury vehicles, was conducted to ensure adherence to road transport laws. He said the main offences detected included expired Motor Vehicle Licences (LKM) under Section 23(1) of the Road Transport Act (RTA) 1987, no insurance coverage under Section 90(1), driving without a licence under Section 26(1), and document falsification under Section 108 of the RTA 1987. 'More worryingly, there are luxury car owners who go as far as using fake registration numbers to avoid detection by the authorities, as well as cases of luxury vehicles being driven by foreigners without valid driving licences,' he told reporters here yesterday. He said among the vehicles subjected to enforcement action were Toyota Vellfire, Toyota Alphard, BMW 523i Limousine, Ford Mustang Fastback, Mercedes E250 CGI, Nissan GTR, and several other luxury models. Mohd Misuari said owning a luxury car is not an excuse to dodge the law, and RTD will continuously monitor the conduct of the vehicle owners involved. Meanwhile, from January to July this year, Kelantan RTD recorded 10,233 offences involving expired LKMs, 8,432 cases of no insurance coverage, and 11,004 cases of driving without a licence. — Bernama
