Go for it. We all nominate you to make a legal challenge, we'll be right behind you cheering you on. Under what clause are you thinking?
The IDP allows for short term use in signatory countries, ie. for tourists and short term visitors. It does not allow for long term use. For that you need to get a local driving license.
That is exactly the same as Thailand. Nothing has changed. Tourists can use their local license or an IDP. But if you want to obtain a full Thai license you now need to take the multiple choice exam, whereas before this was often not required.
How and why are you going to challenge this legally exactly?
The rule of thumb with Malaysians is that LOS is cheaper than Malaysia, and that Singapore is twice the price. Kind of funny is that just about every cabbie in Malaysia will tell you that a roti chenai in Singapore is double the price -- that's the metric of measurement. Just about every travel guide book will state that the standard of living in Malaysia is higher than Thailand, but I can't say it is very noticeable, particularly in Terragganu: a few years back one of the PMs went there (Badawi, I think) and expressed his disappointment at lack of development (something to do with the c-word and the state's top official's relationship to the royals).
When I first visited Penang in 2004 they did not have a municipal bus system, it was gypsy buses falling apart. Even those old, funky buses with wooden floors in Bangkok would have been a class up.
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