Buying a car in Malaysia as a foreigner (2026): JPJ registration, loans, insurance and MM2H rules

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By Jason Lim, REN 84424 · IQI Realty · Checked on 5 November 2026

This guide is for expatriates, MM2H participants and foreign home owners in Johor Bahru who want their own car. The short answer: a foreigner living in Malaysia on a long-term pass can generally buy a new or used car and register it in their own name at a JPJ counter, paying cash or with a bank loan if a bank agrees. You need a valid driving licence, motor insurance and road tax, and a used car needs an ownership-transfer inspection first. The MM2H car tax incentive ended on 1 January 2018, so MM2H participants now pay the same duties and taxes as other buyers.

Can a foreigner own and register a car in Malaysia?

Yes, in practice. Malaysia has no rule against foreigners owning a car, but I could not find a single official JPJ checklist for foreign owners in November 2026. What JPJ does make clear is that the registered owner on its system is the legal owner. In January 2026 JPJ warned that transfers not recorded in its system are not legally recognised, and that the registered owner remains responsible for the vehicle (The Star, 21 January 2026). So never buy a car on an informal “handshake” deal or drive a friend’s car long term while it stays in their name.

Guides that walk through JPJ registration say long-term pass holders, such as employment pass and MM2H holders, can usually register a car in their own name, while visit-pass holders usually cannot (Malaysia Handbook, updated October 2026). Branch practice varies, so call or visit the JPJ office before you pay a deposit.

Document	What to bring	Notes
Passport	Original and copy	JPJ uses the passport as a foreigner’s ID; guides advise at least six months’ validity left.
Long-term pass	Employment pass, MM2H pass or other long-term pass in the passport	Bring the approval letter too if the pass details are not obvious.
Malaysian address	Tenancy agreement, utility bill or employer letter	Owning a home in JB makes this simple: use the sale and purchase agreement or a utility bill in your name.
Insurance cover note	In the new owner’s name	Needed before registration or transfer.
Used car only	Original vehicle ownership certificate (VOC), MV15 inspection report, JPJ K3 transfer form	Seller and buyer both attend for thumbprint verification, or send an authorised representative.

Your driving licence: the short version

Owning a car and being allowed to drive it are separate questions. In brief, as JPJ explained when it changed the rules in May 2025:

• Short stays (under 12 months): drive on an International Driving Permit from a Geneva 1949 or Vienna 1968 convention country, or on your own licence if you are from an ASEAN country such as Singapore or Indonesia.
• Living here longer: since 19 May 2025 JPJ no longer converts most foreign licences, so most foreigners must get a Malaysian licence through the same process as Malaysians.
• MM2H participants can still convert. JPJ’s checklist asks for a valid foreign licence, a pass valid for at least 90 days, the MM2H confirmation letter from Immigration, and a licence record or embassy letter from the issuing country.

My guide to getting around Johor Bahru without a car covers licence rules, tolls and the car-free options in more detail, so I won’t repeat it here.

MM2H and cars: what still applies, and what has ended

Many older MM2H guides still say participants can buy or import one car without duty. That benefit has ended. The Ministry of Finance’s amended MM2H tax incentive guideline (3 July 2018) says the vehicle incentive stopped from 1 January 2018. The current MM2H website lists a tax exemption on foreign income and the fixed deposit, but no vehicle benefit (checked November 2026).

Item	What it was or is	Status in November 2026
MM2H car tax incentive	Excise duty exemption on one new locally assembled car, or import and excise duty exemption on one imported car, capped at RM150,000	Ended 1 January 2018. Participants first approved in 2017 could apply until 31 December 2018, with no extension.
Import licence (AP) for your own car	MITI guideline for MM2H participants: the car must be registered in your name in your home country for at least 6 months before your MM2H approval, and cannot be sold for 2 years after Malaysian registration	Still published by MITI (last updated October 2019). An AP permits the import; it is not a tax exemption.
Driving licence conversion	Convert a valid foreign licence at JPJ	Still open to MM2H participants since the 19 May 2025 changes.

Thinking of shipping a car from home? Ask Royal Malaysian Customs for a duty assessment first: with no MM2H exemption, import duty, excise duty and sales tax are assessed in the normal way. Expatriates on a work pass have a separate MITI import guideline that requires the car to be re-exported when the job ends.

For the visa itself, I coordinate with a MOTAC-licensed MM2H agent and handle the property side, including the home every participant must buy after approval; approval is decided by the authorities. Start with my MM2H property support page, the MM2H FAQ and the MM2H eligibility checker. The SEZ/SFZ tier, which in Johor currently means Forest City, is covered in my SEZ/SFZ MM2H guide, and retirees should read retiring in Johor Bahru.

Paying for the car: cash or a car loan

Paying cash is simplest. A car loan here is a hire-purchase agreement, and each bank decides case by case whether to lend to a non-citizen. To give a sense of standard terms, one major Malaysian bank’s hire-purchase page (accessed November 2026) lists a passport as acceptable ID, financing of up to 90%, tenure of up to 9 years and, where the credit assessment requires it, a guarantor. A foreign applicant may be offered less, so ask each bank directly:

• Do you finance non-citizens, and which passes do you accept?
• How does my pass expiry date affect the loan tenure?
• Do I need a Malaysian guarantor or my employer’s letter?

One change helps all borrowers. The Hire Purchase (Amendment) Act 2026, gazetted on 30 January 2026, took effect on 1 June 2026 and removed flat-rate interest and the Rule of 78, so early-settlement balances better reflect the principal you still owe (RinggitPlus, March 2026). Car loans are separate from home loans; for buying a home, see my guide to home loans for foreigners.

Motor insurance and road tax

Insurance

You must insure the car before you use it on the road, and before JPJ will register a transfer or renew road tax. Malaysian insurers do not sell the bare “Act” cover, so the minimum you can buy is third-party cover, which covers injury or death to others and damage to other people’s property up to RM3 million. Third party, fire and theft adds those risks for your own car, and comprehensive cover adds accident damage to your car. Compare quotes from licensed insurers, read the exclusions, and ask your bank which cover it requires if the car is financed.

Road tax (LKM)

Petrol private car, individual owner, Peninsular Malaysia	Road tax per year
Up to 1,000cc	RM20
1,001cc – 1,200cc	RM55
1,201cc – 1,400cc	RM70
1,401cc – 1,600cc	RM90
1,601cc – 1,800cc	RM200 plus RM0.40 per cc above 1,600cc
1,801cc – 2,000cc	RM280 plus RM0.50 per cc above 1,800cc (about RM379 for a 1,998cc car)
2,001cc – 2,500cc	RM380 plus RM1.00 per cc above 2,000cc

• Electric cars: the road tax exemption for EVs ended on 31 December 2025. From 1 January 2026 they pay by motor output, for example RM20 up to 50 kW and RM80 to RM280 for 100 to 210 kW (Motorist Malaysia, June 2026).
• Where to renew: the MyJPJ app, JPJ counters and other authorised channels. Insurance must cover the road tax period.
• EV prices and tax: the Ministry of Finance did not extend the excise duty exemption on fully imported EVs beyond 31 December 2025; locally assembled EVs remain exempt from excise duty and sales tax until 31 December 2027 (SoyaCincau, October 2025).

Buying a used car: checks and ownership transfer

A used car is often the practical choice for a stay of a few years. Whether you buy from a dealer or a private seller, these steps protect you. I don’t recommend any particular dealer or platform.

1. Check the seller is the owner. The name on the original VOC must match the seller’s ID.
2. Check for loans and fines. Outstanding hire-purchase loans, fines and summonses must be settled before JPJ will process the transfer.
3. Get the MV15 inspection. The MV15 (formerly B5) ownership-transfer inspection is done at Puspakom or another JPJ-licensed centre. The fee is RM37.80 nationwide (RM30 inspection, RM5 processing, plus SST), the Transport Minister said in September 2026, and the report has been valid for 120 days since 1 July 2026.
4. Financing? Expect a B7 too. Buyers using a hire-purchase loan may also need a B7 inspection, which only Puspakom provides, at RM60 as of mid-2026 (RinggitPlus).
5. Insure it in your name first. The insurance cover note must be in the new owner’s name before the transfer.
6. Transfer at a JPJ counter. Seller and buyer complete the K3 form and thumbprint verification. Online transfers currently work only between two Malaysian citizens, so foreign buyers should plan a counter visit.
7. Ask about flood history. Parts of Johor flood in the monsoon season; ask a mechanic to check for water damage. My flood risk guide explains which seasons matter.

Pay by bank transfer against a written receipt and keep copies of every document.

Keeping a Singapore-registered car instead

Some Singapore residents who move to JB keep their Singapore car, but that is not a way to keep a foreign car here permanently. Every Singapore-registered car needs a registered and activated JPJ VEP RFID tag (RM10, valid five years); since 1 July 2025 entering without one can mean a RM300 compound, and a RM20 Road Charge is deducted per entry through Touch ‘n Go. Daily commuters should read living in JB and working in Singapore, which also covers crossing times.

Parking and EV charging at your JB home

The home you choose decides how easy a car is to keep. What I check for buyers:

• How many bays come with the unit? Many condos give one or two bays; check whether they are accessory parcels on the strata title or allocated by management, and whether management charges for an extra bay.
• Landed homes usually have a porch for one or two cars. Gated and guarded estates add access control and visitor rules.
• EV charging: a landed home can usually install a charger through a registered electrical contractor; in a condo you need written approval from the JMB or MC. My guide to EV charging and parking at JB homes explains the approvals, tariffs and public chargers.
• Street parking: since 1 June 2026 ParkMax@Johor has been the app for council street parking in Johor Bahru, Iskandar Puteri, Kulai and several other Johor councils (The Iskandarian, June 2026).

If you are still deciding whether you need a car at all, a home near the RTS Link station can make one car, or none, workable; see JB homes near the RTS Link station. Running costs belong in your monthly budget, which my cost of living guide for Johor Bahru sets out.

Where to live if driving matters to you

• Iskandar Puteri: wide roads, EduCity schools and quick access to the Second Link to Tuas.
• Mount Austin: family neighbourhoods with malls and schools, where most residents drive.
• Tebrau, Setia Indah and Molek: established landed areas with porch parking, close to the highways.
• Permas Jaya and Senibong: east-side homes near the Eastern Dispersal Link into the city.
• JB Sentral and Bukit Chagar: for people who want to drive less, walking distance to the CIQ and the RTS Link station.
• Forest City: the SEZ/SFZ MM2H zone; far from the city, so a car is close to essential.

Foreigners can generally buy Johor residential property only from RM1 million, with some exceptions such as designated zones (New Straits Times, April 2026). Compare areas on my JB property map.

More Johor living guides: Getting around JB without a car · EV charging and parking at JB homes · Retiring in JB · Cost of living in JB

Frequently asked questions

Can a foreigner buy a car in Malaysia?

Yes. Foreigners living in Malaysia on a long-term pass, such as a work pass or MM2H, can generally buy a new or used car and register it in their own name at JPJ using their passport. Branch practice varies, so confirm the documents with your JPJ office before paying a deposit.

Can MM2H participants buy or import a car duty-free?

No longer. The Ministry of Finance ended the MM2H vehicle tax incentive from 1 January 2018; it had covered excise duty on one locally assembled car or import and excise duty on one imported car, capped at RM150,000. MITI still publishes an import licence guideline for MM2H participants, but an import licence is not a tax exemption.

Can I drive in Malaysia on my foreign licence?

For stays under 12 months, yes, with an International Driving Permit, or on your own licence if you are from an ASEAN country. Since 19 May 2025 JPJ converts foreign licences mainly for MM2H participants, diplomats and Malaysians; other long-stay foreigners must get a Malaysian licence.

Can foreigners get a car loan in Malaysia?

Sometimes. Each bank decides whether to finance a non-citizen and on what margin, tenure and guarantor terms. Ask how your pass expiry affects the tenure. Since 1 June 2026 new hire-purchase loans no longer use flat-rate or Rule of 78 interest.

What is the MV15 inspection and how much does it cost?

MV15, formerly called B5, is the inspection needed before ownership of a used car can be transferred. The fee is RM37.80 at Puspakom and other JPJ-licensed centres, and since 1 July 2026 the report has been valid for 120 days.

How much is road tax for a car in Johor?

Johor follows the Peninsular Malaysia rates. A 1,401cc to 1,600cc petrol car pays RM90 a year and a 1,998cc car about RM379, as of July 2026. Electric cars have paid by motor power since 1 January 2026, from RM20 a year up to 50 kW.

Buying a home in JB and planning your car?

Tell me your pass, where you will work or study, how many cars you will keep and whether one is electric. I will shortlist homes with the right parking and check the building’s charging rules before you view. You can also book an appointment for viewings, or a Zoom consultation if you are still abroad.

Sources: Ministry of Finance, Pindaan Garis Panduan MM2H (amended MM2H tax incentive guideline), 3 July 2018; MITI, guideline on private vehicle import licences for MM2H participants, last updated October 2019; MITI, guideline on private vehicle import licences for expatriates, accessed November 2026; MM2H official site, requirements and regulations, accessed November 2026; JPJ, licence conversion checklist, effective 19 May 2025, accessed November 2026; Malay Mail, “JPJ: Foreign driving licence conversions to cease on May 19”, 16 May 2025; The Star, “JPJ warns those in dodgy vehicle transfers”, 21 January 2026; SAYS, documents for a JPJ car ownership transfer, 17 October 2025; Malaysia Handbook, how to register and transfer a vehicle at JPJ, updated 25 October 2026; RinggitPlus, “MV15 car ownership transfer inspection fee stays at RM37.80 nationwide”, 15 September 2026; paultan.org, “MV15 ownership transfer report now valid for 120 days”, July 2026; RinggitPlus, “Car loan interest rules are changing from June 2026”, 16 March 2026; insuranceinfo.com.my, motor insurance types, accessed November 2026; StashAway, how to calculate road tax in Malaysia (2026 rates), 31 July 2026; Motorist Malaysia, EV road tax 2026 after the exemption ended, 18 June 2026; SoyaCincau, MOF on CBU and CKD EV excise duty exemptions, 10 October 2025; Bernama, VEP enforcement on Singapore-registered vehicles begins, 1 July 2025; Motorist Singapore, guide to the VEP (tag fee, validity, Road Charge), updated 3 February 2026; Touch ’n Go eWallet Help Centre, JPJ Road Charge for foreign private vehicles, accessed November 2026; The Iskandarian, MBJBSpot to ParkMax@Johor, 5 June 2026; New Straits Times, “Foreigners hit Johor property resale wall”, 20 April 2026

Jason Lim, REN 84424, IQI Realty Sdn. Bhd. E (1) 1584/6. General information checked on 5 November 2026, not legal, tax or financial advice. JPJ, Customs, MITI and bank requirements change; confirm with JPJ, Royal Malaysian Customs, your bank and your insurer before you commit.