Driving in Malaysia
This ExpatGo Guide is brought to you in partnership with FLUX, a car subscription provider in Malaysia.
For many newcomers, getting around Malaysia is one of the easier parts of settling into the country. Roads are generally good, cars are widely available, ride-hailing is relatively affordable, and Kuala Lumpur has an increasingly extensive urban rail system.
Outside the main city centres, however, Malaysia remains a fairly car-dependent country. While it is quite possible to live without a car in central Kuala Lumpur, many people living in suburban areas, smaller cities or elsewhere in the country eventually decide that having regular access to a vehicle makes life considerably easier.
New arrivals also have more choices than simply buying a car. Traditional ownership remains popular, but leasing and newer car subscription services such as FLUX can be attractive alternatives, particularly for expatriates who may not know exactly how long they will remain in Malaysia.
This guide explains the options, from driving licences and buying a car to subscriptions, insurance, toll roads, parking, Grab and public transport.
Domestic air travel is covered in our Travel Guide
Driving in Malaysia
Malaysia drives on the left-hand side of the road, as in the UK, Australia, Singapore and several other Commonwealth countries. The quality of the main road network is generally good. Peninsular Malaysia has an extensive system of expressways, while major cities are connected by good federal and state roads. The North-South Expressway forms the principal road artery running through Peninsular Malaysia.
For newcomers, the biggest adjustment is often not the road system itself but local driving habits. Traffic can be assertive, motorcycles frequently move between lines of slower traffic, and lane discipline is not always what drivers from some countries may be accustomed to.
Kuala Lumpur and the Klang Valley can become heavily congested during the morning and evening rush hours. Heavy tropical rain can also reduce visibility very quickly, and localised flooding can occur after severe storms. Navigation apps such as Waze are extremely useful because city road systems can be complicated and the same destination may be accessed through several highways, flyovers and interchanges.
For residents living outside of downtown Kuala Lumpur, having regular access to a car remains one of the most convenient ways to get around.
Getting a Malaysian Driving Licence
Foreigners can drive on their foreign licences for up to 90 days. Longer-term residents are required to apply for a Malaysian driving license. Some categories of visa, like diplomats and MM2H visa holders, can convert their license, but other visa holders usually have to retake their driving lessons and sit for the test. Applicants generally register with a licensed driving institute and progress
through theory instruction and the road-law test, followed by a Learner’s Driving Licence, practical training and the practical driving tests.
After passing the required tests, the applicant normally progresses through Malaysia’s probationary licence system before obtaining a full Competent Driving Licence.
The overall cost depends on the driving school, training package and licence class, so it is worth comparing several licensed driving institutes.
Converting a Foreign Driving Licence
Foreign residents should not assume that simply holding a valid driving licence from their home country automatically entitles them to exchange it for a Malaysian licence. Eligibility depends on the individual’s circumstances and immigration status.
Foreign residents should check their eligibility directly with JPJ before relying on licence conversion.
It is best to have an International Driving Permit. Because the regulations change from time to time, licence information should always be checked against the latest requirements.
Buying a Car
Malaysia has a large new- and used-car market, ranging from relatively inexpensive locally manufactured models to premium international models.
Buying a new car is usually straightforward because the dealer handles most of the registration paperwork, insurance arrangements and initial road tax.
Used cars are widely available through dealerships, independent sellers and online marketplaces. Buyers should look beyond mileage and appearance and consider the vehicle’s service history, accident history, remaining warranty and mechanical condition.
Foreign residents may also find that financing requirements differ from those faced by Malaysian citizens. Banks may consider factors such as immigration status, employment, income and the remaining duration of a work or residence pass.
Buying can make good financial sense for someone planning to remain in Malaysia for a number of years. For someone on a shorter assignment, however, ownership introduces another consideration: eventually having to sell the vehicle.
Leasing a Car
Long-term leasing provides the use of a vehicle for an agreed period without purchasing it outright. The customer normally pays a monthly charge. Depending on the particular agreement, servicing, insurance, road tax and other running costs may either be included or charged separately. Leasing can suit expatriates who know approximately how long they will remain in Malaysia but do not want to commit capital to buying a vehicle.
Before entering a lease, look carefully at the minimum term, mileage restrictions, insurance, maintenance obligations, accident excess, early termination charges and the conditions governing the return of the vehicle.
Car Subscriptions
Car subscriptions offer another way to use a vehicle regularly without buying one.
Rather than buying a car plus arranging insurance, road tax and servicing, the customer generally pays a regular subscription fee, while much of the administration associated with running the vehicle is handled by the subscription provider.
This can be particularly attractive to expatriates. New arrivals may be reluctant to make a large down payment on a car before they know how long they will stay in Malaysia. Others simply prefer to know roughly what their monthly vehicle cost will be without having to arrange insurance, road tax, maintenance, and eventual resale themselves.
FLUX Car Subscriptions
FLUX, the sponsor of this ExpatGo Guide, offers car subscriptions as an alternative to traditional vehicle ownership in Malaysia. The basic attraction of the subscription model is convenience. Instead of buying a vehicle and taking responsibility for the various administrative elements associated with ownership, a subscriber can use a vehicle for an agreed period under one regular arrangement.
For expatriates, this can remove several of the complications associated with buying a car soon after arriving in Malaysia.
It may be particularly worth considering if:
· you are in Malaysia on a fixed-term assignment;
· you do not want to make a substantial initial payment for a vehicle;
· you would prefer not to arrange the various elements of ownership separately;
· you do not want the inconvenience of eventually selling the vehicle; or
· you want greater flexibility than traditional long-term ownership.
As with any vehicle agreement, readers should check the actual terms before signing. Pay particular attention to the commitment period, mileage allowance, insurance arrangements, servicing, accident excess, permitted drivers and early termination conditions.
For newcomers deciding between buying, leasing or subscribing, the most useful comparison is the total cost and convenience over the period you realistically expect to live in Malaysia.
For more information about car subscription options, readers can visit FLUX through the link provided on this page.
Car Insurance
Motor insurance is required before a vehicle can be legally licensed for use on Malaysian roads.
Policies range from basic third-party protection to comprehensive insurance covering damage to the insured vehicle as well as liabilities to others.
Optional protection may include windscreen damage and natural perils such as flooding. Flood cover is particularly worth checking in Malaysia because it should not automatically be assumed to be included in every policy.
Malaysia also operates a No Claim Discount system, commonly called NCD, which rewards drivers who remain claim-free. It usually increases to a maximum of 55% reduction on gross premium.
Road Tax
Malaysia’s annual vehicle licence is commonly referred to as road tax. The amount depends on the type of vehicle, engine capacity and other factors. It can be quite high for large engined cars.
For somebody buying a new car, the dealer will normally handle the initial registration, insurance and road-tax arrangements.
Toll Roads
Anyone driving regularly around Kuala Lumpur or travelling between Malaysian cities will quickly become familiar with toll roads. Malaysia has an extensive network of tolled expressways. They can substantially reduce journey times but frequent toll use becomes part of the normal cost of driving, particularly in the Klang Valley. Electronic payment is now standard on major expressways.
A Touch ‘n Go card remains extremely useful for drivers, while RFID allows toll charges to be paid electronically using a tag attached to the vehicle.
Make sure that your chosen payment method has sufficient balance before beginning longer motorway journeys.
Parkings
Parking arrangements vary considerably across Malaysia. Shopping centres and office buildings normally provide their own car parks, increasingly using cashless systems or automatic number-plate recognition. Street parking is usually administered by the relevant local authority, meaning payment methods can differ between cities and municipalities. Many councils now use apps or electronic payment.
Newcomers should pay attention to signs and road markings. Vehicles parked illegally can be fined, clamped or towed. In central Kuala Lumpur, the combination of congestion and parking charges means that even people who own cars sometimes find public transport or Grab more convenient.
Traffic Rules
Most Malaysian road regulations will be familiar to experienced international drivers. Seat belts are compulsory and motorcycle riders and passengers must wear helmets. Drivers must obey traffic lights and posted speed limits, and using a handheld mobile phone while driving is prohibited. Automated enforcement cameras operate on parts of the Malaysian road network.
Drivers should be particularly alert to motorcycle riders who frequently swerve between lanes of traffic. Heavy tropical rain also requires care. Visibility can deteriorate remarkably quickly, surface water can build up on roads and stopping distances increase.
Motorcycles
Motorcycles and scooters play a major role in Malaysian transport. They are relatively inexpensive, easy to park and can move through congested urban traffic more easily than cars. Anyone riding
must hold the appropriate motorcycle licence. A normal car licence does not automatically permit someone to ride a motorcycle. Helmets are compulsory for riders and passengers.
Newcomers with limited motorcycle experience should think carefully before learning in heavy Malaysian city traffic. Sudden tropical rain, potholes, busy junctions and large numbers of other motorcycles can make conditions challenging.
This guide contains sponsored content produced in partnership with FLUX. ExpatGo retains editorial responsibility for the general information contained in the guide.