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Budget 2026: Govt tightens road safety rules, offers incentives for old vehicle disposal

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PETALING JAYA : In response to a series of fatal road tragedies, the government has announced stronger enforcement measures and major allocations under Budget 2026 to enhance road safety nationwide.

Prime Minister Datuk Seri Anwar Ibrahim said the recent spate of accidents — including those involving university students, police personnel, and the recent crash at the Bukit Kajang toll — has prompted a renewed focus on stricter regulations and better road infrastructure.

The Transport Ministry will soon introduce speed limit regulations for heavy vehicles to prevent recurring accidents. To complement this, RM2.5 billion has been allocated for federal road maintenance, including resurfacing potholes, installing streetlights, and replacing damaged road furniture.

Of this allocation, RM700 million will be channelled to small local contractors (G1–G4) to carry out maintenance works, boosting local participation in infrastructure projects.

An additional RM5.6 billion under the Malaysian Road Records Information System (MARRIS) will be distributed to state governments for road repairs, while RM30 million is allocated to empower District Engineers to accelerate small-scale roadworks and handle public complaints more efficiently through the MYJalan app.

The Malaysian Highway Authority will also install 3,000 LED streetlights at high-risk highway locations to improve visibility and reduce nighttime accidents.

To encourage compliance, the government will grant Accelerated Capital Allowance claims for transport companies purchasing speed limiters for heavy vehicles.

Meanwhile, the PERKESO Health Screening Programme will be expanded to include public transport and freight drivers, ensuring they are medically fit to operate vehicles safely.

In a move to promote safer and greener roads, the government will also provide matching grants of up to RM4,000 to vehicle owners who dispose of cars over 20 years old and purchase a new national vehicle.

The initiative, implemented in collaboration with national carmakers, aims to enhance road safety standards while supporting Malaysia’s transition to a low-emission, energy-efficient automotive industry.

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