Driving Guide for Expats in Penang
International Permits, Local Licenses, Car Rental & Road Rules
Editorial estimate, not an official figure. Price ranges on this page (rents, fees, typical costs) are indicative estimates written by our editors. They are not drawn from an official dataset and have not been individually re-verified, so confirm current prices with the provider. Official rules and tariffs are marked with their source and the date we last checked it.
International Driving Permit (IDP)
IDP Validity in Malaysia
- ✓ For temporary stays of under 12 months (JPJ)
- ✓ IDP must be from a 1949 Geneva / 1968 Vienna Convention country
- ✓ ASEAN nationals can drive on their home licence instead
- ✓ Carry your original home license with the IDP
- ✓ IDP alone is not valid - need home license
- ✓ Check expiry date before arrival
Getting an IDP
- • Apply in your home country
- • Issued by your country's designated motoring body
- • Get it BEFORE you arrive in Malaysia
Converting to a Malaysian Licence: Stopped for Most Foreigners
What changed on 19 May 2025
JPJ stopped all applications to convert a foreign driving licence to a Malaysian licence (LMM) from 19 May 2025. Foreigners who need a Malaysian licence must now go through the standard procedure that Malaysians follow.
Not affected by the stop:
- • Members of the diplomatic corps
- • MM2H participants
- • Malaysian citizens who obtained a foreign licence before holding a Malaysian one
Foreigners staying under 12 months may drive on an International Driving Permit from a 1949 Geneva / 1968 Vienna Convention country, or — for ASEAN nationals — on their home licence.
Source: JPJ (Road Transport Department), via RTM — the government broadcaster — JPJ henti permohonan pertukaran lesen memandu asing berkuat kuasa 19 Mei (16 May 2025) · last checked 2026-10-06
Staying longer than 12 months? Unless you are in an exempt group (for example an MM2H participant), plan on getting a Malaysian licence through the standard JPJ procedure. Check the current steps and fees on jpj.gov.my or at a JPJ office before you rely on your foreign licence.
Buying or Leasing a Car
Car Rental (Short-term)
- • Cost: RM 100-300/day
- • Minimum rental: 1 day to weeks
- • IDP (or ASEAN licence) accepted for short stays
- • Insurance usually included
- • Credit card required for deposit
- • Recommended companies: Avis, Hertz, local firms
Car Lease (Monthly)
- • Cost: RM 1,500-3,500/month
- • 6-12 month agreements typical
- • Fuel, maintenance often included
- • Insurance usually included — check the contract
- • Flexibility of car without ownership
Car Purchase
- • Loan eligibility for foreigners is set by each bank
- • Car models: Toyota, Honda, Proton, Perodua
- • Used cars common, good condition
- • Registration, tax, insurance required
- • Consider: traffic, parking costs
Using Grab/Taxi (Most Common)
- • Cost: RM 5-20 per trip (within George Town)
- • Grab app: Download and use
- • Taxis: Less common but available
- • RapidPenang buses: RM 1-4 per trip
- • No license needed
- • Best for short trips
Malaysian Road Rules & Safety
Key Road Rules
- • Drive on LEFT side of road
- • Obey posted speed limits (expressways are typically 110 km/h)
- • Seatbelts mandatory for all passengers
- • No mobile phone use while driving
- • Motorcycle helmets required
- • Don't drink and drive — the legal limit is low and penalties are severe
- • Traffic lights: Red=stop, Yellow=prepare, Green=go
Safety Tips
- ✓ Drive defensively - local drivers are aggressive
- ✓ Avoid driving at night (poor lighting)
- ✓ Watch for motorcycles weaving through traffic
- ✓ Be careful during heavy rain (flooding)
- ✓ Keep documents in car (license, insurance, registration)
- ✓ Get comprehensive car insurance
- ✓ Avoid driving if unfamiliar with roads
Traffic Fines
Speeding, no seatbelt, no helmet: RM 300-1,000 fines. Driving under influence: severe penalties. Traffic police conduct regular spot checks. Pay fines immediately to avoid complications.
Parking & Motorcycle Rentals
Parking in George Town
- • Street parking: RM 0.50-2 per hour
- • Parking meters or manual payment
- • Mall parking: Usually free (buy something)
- • Residential: Secure parking RM 150-300/month
- • Tight spaces in heritage area
- • Avoid double-parking (fines RM 100-300)
Motorcycle Rentals
- • Cost: RM 150-300/month
- • Daily rental: RM 30-50
- • Popular: Honda Wave, Yamaha Y15
- • Helmet mandatory (provided)
- • License required
- • Great for getting around George Town
FAQs
Do I need a car in Penang?
Not necessary in George Town (walkable). Grab and buses are sufficient. Only needed if living in Gurney, Bayan Lepas, or outside George Town. Consider your neighborhood before buying.
Is the Malaysian driving test hard?
Since 19 May 2025 most foreigners can no longer convert a foreign licence, so getting a Malaysian licence means going through JPJ's standard procedure, the same one Malaysians follow. MM2H participants and diplomats are exempt from the stop. Short stays under 12 months can use an IDP (or an ASEAN home licence).
What if I get pulled over?
Be polite and cooperative. Carry all documents: passport, IDP/license, insurance, registration. If traffic fine, ask for ticket (resit) rather than paying roadside (corruption). Pay any fine through the official channels listed on the summons.
Is fuel expensive in Malaysia?
Since 30 September 2025 the subsidised RON95 price (the BUDI95 scheme) is for Malaysian citizens only; foreigners pay the unsubsidised pump price, which the government revises weekly. Check the current price at the pump.