Can Singaporeans Buy a Car in Malaysia? A Guide

If you’ve been wooed by the significantly lower Malaysian car price, compared to the costs of a car plus COE here in Singapore, you may be wondering: Can a Singaporean buy a car in Malaysia?

There are no specific restrictions imposed by the Malaysian authorities, so you can buy a car in Malaysia under the same rules as a local would. However, crucially, Singaporeans can not drive a Malaysian car in Singapore. This guide walks through all you need to know.

We'll also introduce the Wise account, a handy companion to make your money go further with low, transparent fees.

What to consider when choosing a car

The key questions here are: Can I buy a car in Malaysia as a Singaporean? And if so, can Singaporeans drive Malaysian cars in Malaysia?

Luckily, the answer to both of these is yes. As long as you’re planning on buying a vehicle in Malaysia, to drive in Malaysia without crossing over to Singapore, you’re good to go.

Buying new vs. second-hand: a comparison

There are two main options when buying a car in Malaysia as a Singaporean: purchase through a Malaysian dealer or buy a second-hand car through local ads or online marketplaces.

Both options have merit. If you’re buying a new vehicle, you’ll need to go via a dealer, but there are many dealerships in Johor that specialise in trade to Singaporeans, thanks to the recent uptick in interest in buying a car in Malaysia. In fact, a recent Straits Times article¹ quotes a Johor dealership that had sold as many cars to Singaporeans in a couple of months in 2025 as they did across the whole year in 2024.

Buying through a dealer will mean you have a registered point of contact if you have questions or concerns about the vehicle once it’s registered in your name. However, you’ll likely pay more compared to buying second-hand through a marketplace site, local ads, or word of mouth.

Malaysian marketplace sites often have extensive second-hand vehicle sections that you can browse to find a vehicle that suits you. That can mean you spot a great deal, but you’ll need to do your due diligence to check that the seller is the legitimate owner of the vehicle, and that it’s in good order when you buy it.

How to buy a car in Malaysia as a Singaporean

If you dream of owning an affordable luxury car in Malaysia for local driving there, you’ll usually need to follow these steps to buy a car in Malaysia as a Singaporean:

1. Select the car you want to buy - either from a dealer or a marketplace site like Mudah², which offers second-hand vehicles.
2. Negotiate the costs with the seller and agree a deal, subject to inspections and checks - you may need to pay a deposit while these checks take place.
3. Seller arranges a PUSPAKOM inspection³, which is required for the transfer of ownership.
4. Buyer and seller attend the JPJ (Road Transport Authority)⁴ office together to transfer ownership and provide biometric data.
5. Buyer must now purchase adequate local Malaysian insurance and road tax.

The documents needed to buy a car in Malaysia as a Singaporean are usually only related to your ID. Take along your passport when you attend the JPJ. The seller needs to provide more paperwork when they attend the meeting, including the vehicle registration documents, proof of insurance, and other documents, depending on the nature of the sale.

The transfer of ownership can be completed online only if both the buyer and the seller have 1Malaysia ID access (1MID)⁵.

Can Singaporeans drive a Malaysian-registered car in Singapore?

No. It’s very important to note that Singaporeans can not drive a Malaysian-registered car in Singapore. According to the LTA (Land Traffic Authority), you may not drive a Malaysian car in Singapore if you’re a⁶:

• Singapore citizen
• Singapore Permanent Resident (PR)
• Resident of Singapore
• Long-Term Visit Pass or Dependant's Pass holder
• Student's Pass holder
• Training Employment Pass or Work Holiday Pass holder
• Work Pass holder who is also a resident of Singapore

If you’re a Work Pass holder but not a local Singapore resident, you may be able to drive your vehicle here, but under strict conditions.

If you break these rules, you’ll be subject to LTA fines, which can be up to 1,000 SGD for a first offence, or imprisonment for up to 3 months. Your insurance will be automatically invalidated, which constitutes another offence, and which may mean further fines or legal worries.

How much does it cost to buy a car in Malaysia?

There are quite a few costs you’ll need to consider when you buy a car in Malaysia as a Singaporean. Most of the costs are pretty variable depending on the type of car you choose to buy.

For many Singaporeans buying vehicles in Malaysia, the aim is to access a luxury, off-road, or sports vehicle that they may otherwise not be able to afford in Singapore, thanks to the more reasonable pricing in Malaysia. That can mean a pretty high initial outlay, plus unavoidable costs for road tax and insurance, but still, the overall price will be far lower compared to Singapore.

Costs associated with buying a car in Malaysia as a Singaporean can include:

• Finance costs if you take a loan to buy your car
• Costs of road tax and insurance
• Petrol and road toll costs when you drive
• Maintenance and repair costs
• Prices of parking and secure storage when you’re not using your vehicle
• Depreciation costs if you intend to sell your car later

To give a bit more of an example, if you were looking to buy a sports car - say a Porsche Macan Turbo 2.9 liter - second hand, and pay for insurance and road tax in Peninsular Malaysia, here are some ballpark costs:

Costings are taken from live adverts and online calculators on 12th August 2025, and are to be used for information only. Actual prices can vary.

While an outlay of close to 120,000 SGD on a new car is a lot of money, the COE alone in June 2025 would cost you close to that for a similar vehicle⁷.

Car financing options: cash or loan?

It’s reported that most Singaporeans buying cars in Malaysia for local use pay upfront in cash, but you could also choose to look for a car loan in Malaysia.

There’s no legal reason why a bank in Malaysia could not offer you a loan, but their decisions may come down to your personal situation and the value of the loan required. You may need to pay a higher down payment, and accept a higher financing cost compared to the same loan offered to a local in Malaysia.

Looking to buy a car in Malaysia? Avoid markups or hidden fees with Wise

When you’re making a large cross-border payment for a car, you want to be sure your money arrives quickly and without being eaten up by hidden fees. Traditional banks often charge a high markup on the exchange rate, which can add a significant amount to the final prices of your vehicle.

The Wise account is an easy way to hold and exchange 40+ currencies, including SGD, MYR, EUR, CNY, and more. All you need to do is create a free account to get started.

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Sources last checked: 19 Aug 2025