Loke Siew Tin says MyJPJ app upgrade next month will end third-party agent dealings
PUTRAJAYA — The Transport Ministry has announced a significant upgrade to the MyJPJ mobile application, set for launch next month, which is designed to fundamentally alter how Malaysians interact with the Road Transport…
Source: The Star · October 6, 2026 at 2:32 AM · AI-assisted report
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PUTRAJAYA, 6 OCTOBER 2026 —
PUTRAJAYA — The Transport Ministry has announced a significant upgrade to the MyJPJ mobile application, set for launch next month, which is designed to fundamentally alter how Malaysians interact with the Road Transport Department (JPJ).
Market Impact
The primary objective of this technological enhancement is to phase out the public’s reliance on third-party electronic service agents, thereby establishing a direct digital channel between citizens and the government.
Transport Minister Anthony Loke revealed these plans during a press conference in Putrajaya on Monday, October 5, marking a pivotal step in the government’s long-term strategy to streamline road transport services and reduce administrative bottlenecks.
The announcement comes at a critical juncture, coinciding with the government’s abrupt suspension of two major private entities, MyEG Sdn Bhd and Zetrix AI Bhd, earlier in the day. The suspension was triggered by a failure to remit RM314 million in revenue to the state.
Minister Loke stated that the ministry’s ability to take such decisive action without causing a nationwide paralysis in the driver licensing pipeline was the direct result of strategic anti-monopoly measures implemented since he assumed office in 2022. This regulatory shift has transformed the market landscape, ensuring that the state is no longer dependent on a single commercial provider for essential services.
Loke highlighted that transaction volumes on the MyJPJ app have been growing rapidly, a trend that aligns with the ministry’s broader digitalization goals. He emphasized that the ultimate aim is for the majority of the population to conduct their transactions directly with JPJ, bypassing intermediaries entirely. "Eventually, we hope that most of the people can use it directly with JPJ and do not have to go through any third party.
This is our aim," Loke told reporters. This shift is intended to enhance transparency, reduce costs for consumers, and ensure that revenue flows directly to the government without the risk of leakage or delay associated with private collection agents.
The minister provided detailed context on the regulatory changes that made the recent suspension possible. Previously, MyEG held an absolute monopoly over the computerised driver theory test, known as KPP01. Loke noted that had the suspension occurred two years ago, the nation’s driver licensing pipeline would have been completely paralyzed.
"If I didn't take steps two years ago to open up this sector to other driving institutes, today we wouldn't be able to suspend them because they were the only ones," Loke explained. He added, "If I suspended them, no one could take their theory tests. But because we opened up the market, today there are 85 driving institutes where people can take their tests directly. We are no longer dependent on just one company."
This diversification of service providers has created a resilient ecosystem where the government can enforce compliance without compromising public access to essential services. The existence of 85 alternative driving institutes ensures that the suspension of MyEG and Zetrix AI does not halt the issuance of new licenses or the renewal of existing ones.
This structural change represents a significant departure from the previous model, where a single point of failure could disrupt the entire road transport administration. The ministry’s approach underscores a commitment to competitive markets and regulatory oversight, ensuring that private entities operate under strict conditions that protect public interest.
Regarding the future of MyEG, Loke addressed questions about the possibility of reinstating the company if it clears its outstanding dues. He stressed that discussing a resumption of services is currently premature and that full settlement of the RM314 million remains a strict, non-negotiable precondition. However, he indicated that any future relationship with commercial collection agents would require a fundamental restructuring of payment flows to eliminate the risk of missing funds.
"Even if they settle, of course, additional conditions will be imposed. Such as... they can still act as a platform, but the payment has to be directly credited into the government account," Loke said. This proposed change would ensure that funds are not held in escrow or private accounts, thereby mitigating the risk of remittance failures.
Despite the aggressive push towards full digitalisation via the MyJPJ app, Loke clarified that third-party collection agents are still necessary in the interim. He noted that approximately 20% of motorists still rely on these agents for their transactions. The minister pointed out that these collection networks have a historical existence, having been established over 20 years ago during Malaysia’s early transition toward electronic payments.
This legacy infrastructure continues to serve a segment of the population that may not yet be fully comfortable with or have access to digital platforms. The government’s strategy, therefore, is not to eliminate these agents overnight but to gradually shift the balance towards direct digital interaction while maintaining the existing network for those who depend on it.
Loke further emphasized that the current issue is entirely isolated to MyEG, which happens to be the country’s largest agent by both transaction volume and value. He assured the public that other agents are meeting their obligations. "Other agents have no problems. They pay according to their obligations. I have made recent checks, and there are no arrears from any other agents, including Pos Malaysia," Loke said.
This distinction is crucial for maintaining public confidence in the broader payment ecosystem. The minister’s recent audits have confirmed that the failure to remit funds is specific to MyEG and does not reflect a systemic issue across the entire network of third-party collectors.
The role of Pos Malaysia was highlighted as a critical component of the road transport service infrastructure, particularly for rural populations. Loke noted that Pos Malaysia remains a vital lifeline for citizens in remote areas who depend on physical post offices to renew their driver’s licences and road tax. This physical presence ensures that digital exclusion does not prevent access to essential government services.
The coexistence of digital platforms like MyJPJ and physical outlets like Pos Malaysia reflects a dual-track approach to service delivery, catering to both urban and rural demographics. This inclusive strategy is essential for ensuring that the benefits of digitalisation are accessible to all segments of the population.
The ministry’s decision to suspend MyEG and Zetrix AI was not taken lightly. Loke emphasized that the government had repeatedly given MyEG opportunities to settle the backlog since May. The persistent failure of the company to meet these obligations over several months forced the government to take drastic measures to protect public funds. The suspension serves as a strong signal to all commercial agents that compliance with remittance obligations is non-negotiable.
The government’s patience has been exhausted, and the enforcement of strict penalties is now in effect to ensure that revenue intended for public services is not withheld by private entities.
Looking ahead, the enhanced MyJPJ app will serve as the cornerstone of the ministry’s digital transformation agenda. By introducing new features next month, the government aims to make the direct interaction with JPJ more seamless and attractive to users. This will likely accelerate the shift away from third-party agents, as citizens experience the convenience and efficiency of dealing directly with the department.
The combination of regulatory enforcement, market diversification, and technological innovation positions Malaysia to create a more robust and transparent road transport administration. The next month will be a critical period for the rollout of these new features, with the government closely monitoring user adoption and transaction volumes to gauge the success of the initiative.
The suspension of MyEG and Zetrix AI also has broader implications for the Malaysian economy and the private sector. It demonstrates the government’s willingness to intervene in markets where private entities fail to uphold their contractual and legal obligations. This move may influence how other public-private partnerships are structured in the future, with a greater emphasis on direct payment mechanisms and regulatory oversight.
For the public, the immediate impact is minimal due to the availability of alternative service providers, but the long-term benefit will be a more efficient and transparent system for managing road transport services. The government’s actions reflect a commitment to accountability and the protection of public resources, setting a precedent for future regulatory interventions in the digital economy.
As the MyJPJ app upgrade approaches, the focus will be on ensuring a smooth transition for users. The ministry is expected to provide clear guidance on how to use the new features and how to access services directly through the app. This will be supported by public awareness campaigns to encourage the shift towards digital transactions.
The goal is to reduce the administrative burden on both the government and the public, while ensuring that revenue is collected efficiently and transparently. The next few weeks will be crucial in determining whether the enhanced app can successfully reduce reliance on third-party agents and establish a new norm for direct government-citizen interaction in the road transport sector.
The situation with MyEG and Zetrix AI also highlights the importance of robust regulatory frameworks in the digital age. As more government services move online, the need for clear rules and effective enforcement mechanisms becomes increasingly important. The Transport Ministry’s actions demonstrate a proactive approach to managing risks associated with private sector involvement in public service delivery.
By diversifying the market and implementing strict payment conditions, the government has created a system that is more resilient to failures by individual providers. This approach not only protects public funds but also ensures continuity of service for citizens, regardless of the status of any single commercial entity.
In conclusion, the upcoming upgrade to the MyJPJ app and the suspension of MyEG and Zetrix AI represent a significant milestone in Malaysia’s digital transformation journey. The government’s strategy combines technological innovation with regulatory enforcement to create a more efficient and transparent system for road transport services. The focus on direct digital interaction, supported by a diversified network of service providers, ensures that citizens have multiple options for accessing essential services.
As the new features are rolled out next month, the success of this initiative will depend on user adoption and the continued compliance of all service providers. The government’s commitment to accountability and public interest is evident in its decisive actions, setting a strong foundation for future developments in the digital economy.