2027 Budget: Drunk, drug-impaired drivers to be made to compensate victims under proposed law

In July, it was reported that the cabinet had agreed in principle with the suggestion by the transport ministry to amend the Road Transport Act 1987 (Act 333) to have motorists who cause accidents while driving under the influence of alcohol or drugs compensate their victims .

The MoT said that the proposed move was to ensure that offenders not only face punishment like jail terms, fines and the loss of their driving licenses, but are made responsible for the effects of their actions on the victims and their next of kin. The suggestion had been brought forward by the transport ministry, and the cabinet had agreed in a July 15 meeting.

Now, it has been announced that the amendment is set to go through. During the tabling of Budget 2027 earlier today, prime minister Datuk Seri Anwar Ibrahim said that the government would amend the law to make compensation mandatory for victims of accidents involving drunk or drug-impaired drivers.

He said that the measure was necessary because as of August this year, there had been 28 fatal cases involving drivers under the influence of alcohol or drugs. “Such tragedies serve as a stark reminder that, despite tightened enforcement, rule violations remain a serious concern,” he said.

There was no indication as to when the amendment would be tabled, but back in June, during the media briefing ahead of the amendments to the Road Transport Act , transport minister Anthony Loke had indicated that the compensation proposal was set to be tabled separate from that which was passed in June.

It has also not been suggested how the compensation mechanism would work, but previously, the ministry said it hoped that the amount of compensation would not be fixed automatically or administratively by the government, but determined by the courts based on the facts and merit of each case, including the level of seriousness of the offence, injury or loss of life, losses faced by the victim or next of kin, as well as the ability of the offender to pay.

Separately, Anwar also announced that the installation of telematics systems to monitor speed, location and risky driving patterns would be mandatory. These include integration with alcohol detection devices that must be used before a driver begins a journey. Voluntary implementation is permitted until 2027, while the government develops a driver database for enforcement purposes.

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