
Move to end foreign licence conversion gains praise over fraud concerns
KUALA LUMPUR: The government's decision to discontinue the conversion of foreign driving licences to Malaysian licences has been welcomed as a positive step to strengthen the process and help prevent potential issues, including alleged fraud cases.
Ch'ng Toh Ghee, managing director of Malaysia My Second Home (MM2H) agency Alter Domus, said the policy shift is understandable as Malaysia seeks to tighten compliance and improve road safety standards involving foreigners.
He said while MM2H participants are exempted from the ruling, the move is still timely and necessary to ensure uniformity and prevent abuse.
"This policy is a good move as it helps strengthen the process and enables authorities to prevent potential issues, such as document fraud during the conversion of foreign licences," he told the New Straits Times.
He added that the decision likely stems from previous cases of possible fraud, prompting the authorities to act.
"Some countries do not follow Malaysia's standards when issuing driving licences.
"By standardising the process, the government is ensuring that all drivers, regardless of nationality, meet local safety and competency standards," he said.
Ch'ng also acknowledged that, although the announcement came at the last minute, it demonstrates the government's urgency in addressing the matter.
"Although the announcement was only made on May 17, with implementation set for May 19, we understand the urgency. It shows the government is serious about curbing issues related to licence fraud.
"While last-minute, it is a necessary and commendable move that deserves support."
The Road Transport Department (RTD) on Saturday had announced that all applications to convert foreign driving licences to Malaysian driving licences (LMM) will be discontinued effective May 19.
Its director-general, Datuk Aedy Fadly Ramli, said that foreigners requiring an LMM will now have to follow the existing procedures to obtain the licence, just like Malaysian citizens.
However, several categories of applicants will not be affected by the new ruling, including members of the diplomatic corps and participants in the MM2H programme.
Meanwhile, foreigners residing in Malaysia temporarily for less than 12 months are subject to specific conditions.
Citizens from countries that are signatories to the 1949 Geneva Convention on Road Traffic and the 1968 Vienna Convention on Road Traffic are allowed to drive using an International Driving Permit issued by the relevant authorities of their respective countries.
As for Asean nationals, they only need to use their domestic driving licences, in accordance with the 1985 Asean Agreement on the Recognition of Domestic Driving Licences.
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


Focus Malaysia
an hour ago
- Focus Malaysia
Banking sector resilient with provision buffers ahead of global headwinds
THE quarter one 2025 (1Q25) reporting season came in broadly within expectations. Seven of the eight banks under Hong Leong Investment Bank's coverage (Affin, Alliance, AMMB, CIMB, Maybank, Public Bank, and RHB) delivered results that tracked closely with their forecasts. The lone exception was BIMB, which missed due to higher-than-anticipated credit costs. 'Stripping out non-recurring items from 4Q24, core earnings dipped 3.4% quarter-on-quarter (qoq),' said Hong Leong Investment Bank (HLIB). This came despite a 3.6% rise in pre-impairment operating profit (PIOP), which was supported by positive JAWs (+0.3ppt) and robust non-interest income growth (NOII; +7%). The drag came from higher loan loss provisions (+11.6%) and a weaker contribution from associates (-27.3%). Net Interest Margins (NIM)s were broadly stable, with Affin standing out positively (+7 basis points). Sector core earnings rose 4.1%, underpinned by lower loan loss provisions (-22.9%) and stronger associate contributions (+31.2%). PIOP grew modestly by 1.1%, with net interest income (NII) up +3.4%, partially offset by a dip in NOII (-1.3%). Cost control remained commendable, with operating expenses rising 2.9%. Top performers were Affin (+12.6%) and Alliance (+11.1%), with both delivering robust NII growth, alongside effective cost and provision management, respectively. Both loan and deposit growth moderated, reflecting festive seasonality and FX volatility. Banks continued to pull back from expensive deposit campaigns to protect NIMs. Meanwhile, Alliance was the only bank to post double-digit loan and deposit growth. Asset quality remained firm, with the sector gross impaired loan (GIL) ratio ticking up 1 basis point QoQ to 1.38%. 'Heading into 2Q25, we expect NIMs in 2Q25 to hold up reasonably well sequentially,' said HLIB. HLIB sees three key forces at play: fresh liquidity from the recent SRR cut, easing deposit competition, and a sector-wide pivot to more disciplined loan expansion and funding strategies. This proactive stance is already visible, with banks cutting promotional/campaign FD rates by 5-15 basis points in May, ahead of a potential overnight policy rate cut, though the full margin benefit may only materialize in the second half of 2025. Beyond margins, the bedrock of asset quality is expected to remain solid, supported by resilient domestic economic conditions and minimal US trade exposure. 'While acknowledging risks from the secondary impacts of trade uncertainty, we believe any potential weakness will be well-contained,' said HLIB. The sector is significantly more resilient than in previous downturns, primarily due to the formidable provision buffers accumulated over the past five years. This 'fortress of provisions' provides a robust defence, capable of absorbing any stress and cushioning the GIL ratio, which currently stands near historical lows. 'We reiterate our overweight stance on the Malaysian banking sector, viewing the KLFIN Index's 7% year to date decline as a strategic opportunity to build positions ahead of an anticipated market recovery in the latter half of 2025,' said HLIB. —June 9, 2025 Main image: European Commission


New Straits Times
an hour ago
- New Straits Times
Vios Challenge joins Super GT weekend lineup at Sepang
KUALA LUMPUR: Vios Challenge, the popular one-make series, is set to make its international event debut as a support race for the Malaysian round of the Autobacs Super GT at Sepang Circuit on June 26-28. The Vios Challenge will feature a special one-hour race format for the event instead of its usual 30-minute format. The race will feature three categories - Super Sporting, for professional drivers, Sporting (amateur) and Rookie Class (young development drivers). The Vios Challenge is currently in its eighth season and is one of the most accessible grassroots racing platforms in Malaysia. UMW Toyota Motor president Datuk Ravindran Kurusamy said the series has played an important role in driving talent development in Malaysia. "The Vios Challenge has served as a proven springboard for local talent, and to now have our drivers compete on the same stage as international teams at Super GT marks a defining milestone," said Ravindran in a statement released today (June 9). "Looking ahead, Toyota intends to broaden our motorsports footprint by establishing a clearer progression path for our Toyota Gazoo Racing (TGR) Rookies, enabling their natural graduation into higher-level racing categories. "Plans are underway to form Toyota Gazoo Racing Malaysia (TGRMY), a factory racing team to participate in regional motorsport series to strengthen Malaysia's presence in the sport." The Vios Challenge is one of two support races for the Super GT weekend at Sepang, the other being the GR86 Cup Malaysia Series. UMW Toyota Malaysia and TGR Malaysia are the title sponsor for the Malaysian round of Super GT which is making its return to Malaysian soil this year after a 12-year hiatus.


The Star
2 hours ago
- The Star
Asian equities rise ahead of US-China trade talks, FX largely flat
Most emerging Asian equities rose on Monday ahead of the crucial trade talks between the U.S. and China in London later in the day, while regional currencies remained subdued against a steady dollar. Top trade representatives from Washington and Beijing will meet for talks aimed at defusing the high-stakes trade disputes between the world's two largest economies, which have flared up in recent weeks. The second round of meetings comes four days after U.S. President Donald Trump and Chinese leader Xi Jinping spoke by phone, their first direct interaction since Trump's January 20 inauguration. "The U.S. and China will be holding formal talks around hashing out their differences and trying to reach a trade deal has provided some positive sentiment to markets in the region", said Khoon Goh, head of Asia research at ANZ. MSCI's gauge of Asian emerging market equities rose as much as 1% to its highest level since October 2024. Taiwan stocks rose 0.7% and Singapore shares added 0.2%. Chinese stocks gained 0.3%. South Korean shares climbed 1.7%, supported by post-election policy optimism under newly elected President Lee Jae-myung. The benchmark index had gained 4% last week. A positive session on Wall Street on Friday, driven by better-than-expected U.S. jobs data, helped ease concerns over a potential U.S. recession and is lifting investor confidence today, Goh added. Data showed that nonfarm payrolls increased by 139,000 jobs last month fewer, than the 147,000 jobs added in April but exceeding the 130,000 gain forecast in a Reuters poll of economists. Regional currencies were largely flat, with the Singapore dollar rising 0.2% and the Malaysian ringgit falling 0.2%. The dollar slipped 0.1%, retracing part of the 0.5% gain it posted on Friday, as initial enthusiasm over a strong U.S. employment report gave way to caution ahead of key U.S.-China trade talks. Analysts at Nomura expect markets to remain choppy and range-bound through summer amid ongoing tariff uncertainties. "Market attention remains fixated on the expiration of the 90-day pause on tariffs (subject to court rulings)". Markets in Indonesia were closed for a public holiday. HIGHLIGHTS: ** South Korea president calls for measures to respond to rising prices ** BOJ must ensure fiscal considerations don't overtake mandate, deputy governor says - Reuters