Driving in Malaysia as a Foreign Employee: Licence Conversion Ended in 2025, What Now (2026 HR Guide)
Until May 2025, a foreign employee could usually swap their home licence for a Malaysian one. That route is now closed for most foreigners, including Employment Pass holders. This guide is for HR teams: what changed, how long a foreign employee can drive on an International Driving Permit, how to get a Malaysian licence from scratch, and what it means for company cars and insurance.
💡 Key takeaway: Since 19 May 2025, JPJ no longer converts foreign driving licences into Malaysian ones, except for diplomats, MM2H participants and Malaysian citizens. A foreign employee from a Geneva or Vienna convention country can drive on an International Driving Permit from their home country during a temporary stay of under 12 months. Anyone staying longer, or who wants a licence of their own, takes the same training and tests as Malaysians. If the company lets an employee drive without a valid licence, the company also commits an offence.
What changed in May 2025
JPJ, the Road Transport Department, stopped all applications to convert a foreign driving licence into a Malaysian driving licence from 19 May 2025. The Director-General said the exceptions are members of the diplomatic corps, Malaysia My Second Home participants and Malaysian citizens. Other foreigners who need a Malaysian licence go through the existing procedure, the same one Malaysians follow. Employment Pass holders are not among the exceptions.
Driving on an International Driving Permit
According to JPJ's Director-General, people from countries that are parties to the 1949 Geneva or 1968 Vienna road traffic conventions may drive in Malaysia with an International Driving Permit issued by their own country's authority, and this applies to foreigners in Malaysia temporarily, for less than 12 months, subject to conditions. Carry the IDP together with the home licence it was issued for. Nationals of ASEAN countries can use their home licence under the 1985 ASEAN agreement on the recognition of domestic driving licences.
Make sure the IDP is genuine. In October 2026 JPJ in Kuala Lumpur warned that a document labelled "International Driving Permit" does not by itself give the right to drive: it must be issued by an authority and meet the recognition requirements. Fake IDPs claiming 5-year validity were being sold for up to RM500, and 58 foreigners were detained in one operation.
Hiring a foreign engineer for your team?
Seekers is a licensed tech recruitment agency in Kuala Lumpur. We find Malaysian and foreign engineers, and if your hire needs an Employment Pass, we can support the application. EP support is quoted separately from the recruitment fee.
Talk to us about a hire →Not sure the salary qualifies? Check the Employment Pass category with our free EP checker.
Getting a Malaysian licence from scratch
A foreigner can apply with a valid passport and goes through the same steps as a Malaysian learner:
- Pass the Part 1 theory test, then apply for a learner's licence (LDL) at a JPJ office or kiosk.
- Pass the Part 2 and Part 3 practical tests, then apply for a probationary licence (PDL). It lasts 2 years. The fee for non-citizens is RM120 for classes B2, B and C.
- When the probation ends, apply for the competent driving licence (CDL). The fee for non-citizens is RM120.
Most learners go through a driving school, so the tests and lessons take time. If the employee will stay longer than 12 months and needs to drive, start early so they are not left without a valid licence.
Company cars and the employer's risk
Section 26 of the Road Transport Act says no one may drive without a licence for that class of vehicle, and no one may "employ or permit" another person to drive without one. Both are offences, with a fine of RM300 to RM2,000, up to 3 months in prison, or both. Before handing an employee the keys to a company car, check what they will drive on and until when, and keep a copy on file.
Insurance
Motor policies cover authorised drivers who hold a valid licence. Zurich Malaysia's private car policy, for example, defines an authorised driver as someone who "holds a valid driving licence of the relevant type", and gives no cover if the driver does not. Policies do not say plainly how they treat an IDP, so ask the insurer, in writing, whether the employee's IDP or foreign licence is accepted before they drive the car.
Settling in a foreign employee
- Relocating a foreign employee: HR checklist
- When a foreign employee leaves Malaysia: employer checklist
- Renting a home for a foreign employee: deposits and stamp duty
- Opening a bank account for a foreign employee
- Healthcare, SOCSO and EPF for foreign employees
- Income tax for foreign employees: what HR does
- Bringing the family: Dependant Pass, school and spouse work
- How to apply for an Employment Pass, step by step
How Seekers can help
Seekers is a licensed tech recruitment agency in Kuala Lumpur. We find Malaysian and foreign engineers for your team, and if your hire needs an Employment Pass, we can support the application. EP support is quoted separately from the recruitment fee. For the pass itself, see how to apply for an Employment Pass. Talk to us about a hire.
Frequently asked questions
Can an Employment Pass holder convert a foreign licence to a Malaysian licence?
No. Since 19 May 2025 JPJ has stopped converting foreign licences, except for diplomats, MM2H participants and Malaysian citizens. Employment Pass holders take the same tests as Malaysians.
Can a foreigner drive in Malaysia with an International Driving Permit?
Yes, if the IDP was issued by the authority of a Geneva or Vienna convention country, during a temporary stay of under 12 months, subject to conditions. Carry it with the home licence.
How long can a foreigner drive in Malaysia on a foreign licence?
JPJ's Director-General described the IDP rule as applying to foreigners in Malaysia for less than 12 months. For a longer stay, plan for a Malaysian licence.
How does a foreigner get a Malaysian driving licence?
With a valid passport: pass the theory test and get a learner's licence, pass the practical tests and get a 2-year probationary licence (RM120 for non-citizens), then apply for the competent driving licence (RM120).
Can a company let a foreign employee drive a company car?
Only if the employee holds a valid licence. Under section 26 of the Road Transport Act, permitting someone to drive without one is an offence. Check the insurer accepts the employee's licence or IDP too.
Sources
End of conversions and the IDP rule: statement by the JPJ Director-General, reported by RTM, 16 May 2025; JPJ conversion checklist (effective 19 May 2025). Fake IDPs: Bernama, 8 October 2026. Licence steps and fees: JPJ, learner's licence, probationary licence and competent driving licence. Driving without a licence: Road Transport Act 1987, section 26. Insurance: Zurich Malaysia private car policy. This guide is general information, not legal advice. Last checked: 28 October 2026.