If you are transferring a car to a family member, such as a spouse or parent, but the vehicle stays within the family, you might assume the VEP can simply be transferred. Unfortunately, VEP management does not work that way.
VEP tags are tied to the vehicle's chassis number AND the registered owner's identity. When the registered owner changes, even within a family, the old VEP record must be deregistered and a new one applied for.
If you skip the deregistration step and the new owner tries to drive into Malaysia, the border system will flag an ID Mismatch because the RFID tag is still linked to the previous owner's identity. This can result in being denied entry or fined.
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