Malaysia loses RM30 billion annually to road accidents

Malaysia is grappling with a staggering annual economic loss of RM30 billion due to road accidents, a significant portion of which involves motorcyclists. Deputy Prime Minister Ahmad Zahid Hamidi revealed that while motorcycle accidents constitute only about 14% of all road incidents, they tragically account for 66% of all road deaths. This means nearly two out of every three lives lost on the road are riders or passengers on motorcycles.

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This means almost two out of every three deaths on the road involve motorcycle riders or passengers.

Speaking at the Cabinet Committee Meeting on Road Safety and Traffic Congestion, Ahmad Zahid emphasized that conventional approaches are insufficient. He called for more targeted interventions for high-risk groups, alongside comprehensive strategies addressing infrastructure safety, health, education, enforcement, and urban planning. The meeting also noted the RM30 billion socioeconomic loss in 2025, calculated using the Value of Statistical Life approach, underscoring that road safety investments are crucial for saving lives and protecting the economy.

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For me, these figures show that we can no longer rely on ordinary approaches. Interventions need to be more targeted towards high-risk groups, while also addressing other factors such as infrastructure safety, health, education, enforcement, and urban planning more comprehensively.

The government has set an ambitious target to reduce road accident fatalities by 50% by 2030. Achieving this goal requires strengthened coordination of policies, resources, and accountability across ministries and agencies. Ahmad Zahid also pointed to data from the Social Security Organization (Perkeso), indicating that employee travel accident fatalities are 2.4 times higher than industrial accidents, highlighting a need to focus on worker safety during commutes.

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This proves that investment in road safety is not just an expense but an investment to save lives, protect families, and reduce losses to the national economy.

Minister of Works Datuk Seri Alexander Nanta Linggi further explained that the RM30 billion figure is based on the economic value of risk changes, including lost productivity, income, medical costs, and societal impact. He cited a Malaysian Institute of Road Safety Research (Miros) study indicating that human factors contribute to approximately 80.6% of accidents, reinforcing the need for behavioral and educational interventions.

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This increase will finish off the small and medium producers, who were already hit by high production costs, floods, and now this.