Tuesday, January 27, 2026

Transport ministry launches grant programme to scrap autos 20 years and older; as much as RM4k per recipient

Transport ministry launches grant programme to scrap vehicles 20 years and older; up to RM4k per recipient

The transport ministry has launched the matching grant programme for the substitute of outdated autos, which is aimed toward encouraging roughly 5,000 car house owners to exchange autos aged 20 years or older with newer, safer and extra energy-efficient autos from Malaysia’s nationwide carmakers.

Via an allocation of RM10 million from Funds 2026the programme will see every eligible recipient obtain a grant of as much as RM2,000, which is able to then be matched by taking part native car producers, the transport ministry said.

“Previous autos are typically extra liable to mechanical failures, lack trendy security options, and don’t meet present security requirements. Subsequently, changing getting old autos via this programme is seen as a high-impact highway security intervention,” the ministry stated in its assertion.

Transport ministry launches grant programme to scrap vehicles 20 years and older; up to RM4k per recipient

“The Authorities stresses that highway security is a matter of life and demise, and each outdated car faraway from the highway below this programme represents one much less security danger, contributing to the well-being of the the folks,” the assertion continued.

All Proton fashions, besides the most recent Saga and the eMas 5will probably be eligible for a complete grant of as much as RM4,000, comprised of RM2,000 from the federal government, and the identical quantity matched by the carmaker. The 2 fashions, the Saga and the eMas 5 qualify for a grant of RM1,000 from the federal government which is then matched by the corporate for a complete of RM2,000, transport minister Anthony Loke stated.

Particulars relevant to fashions from Perodua will probably be introduced by the carmaker later, the transport minister added.

Transport ministry launches grant programme to scrap vehicles 20 years and older; up to RM4k per recipient

Previous autos surrendered below the On-line Automobile Deregistration System (e-Dereg) by the highway transport division (JPJ) will probably be disposed of legally via authorised automotive remedy services (AATF)licensed disposal centres that guarantee autos are scrapped in a managed, skilled method in compliance with environmental requirements, the transport ministry said.

Though Sabah and Sarawak are but to have AATFs, the matching grant programme additionally applies to the East Malaysian states on inclusivity grounds, Loke stated. The matching grant programme will begin this month upon approval of the price range, the minister added.

Loke additionally clarified that the programme is aimed primarily at serving to house owners of idle or low-value vehicles, and if house owners really feel that their vehicles have extra worth on the used market, they will proceed in that course.

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