The transport ministry has launched the matching grant programme for the replacement of old vehicles, which is aimed at encouraging approximately 5,000 vehicle owners to replace vehicles aged 20 years or older with newer, safer and more energy-efficient vehicles from Malaysia’s national carmakers.
Through an allocation of RM10 million from Budget 2026, the programme will see each eligible recipient receive a grant of up to RM2,000, which will then be matched by participating local vehicle manufacturers, the transport ministry stated.
“Old vehicles are generally more prone to mechanical failures, lack modern safety features, and do not meet current safety standards. Therefore, replacing aging vehicles through this programme is seen as a high-impact road safety intervention,” the ministry said in its statement.
“The Government stresses that road safety is a matter of life and death, and every old vehicle removed from the road under this programme represents one less safety risk, contributing to the well-being of the rakyat,” the statement continued.
All Proton models, except the latest Saga and the eMas 5, will be eligible for a total grant of up to RM4,000, comprised of RM2,000 from the government, and the same amount matched by the carmaker. The two models, the Saga and the eMas 5 qualify for a grant of RM1,000 from the government which is then matched by the company for a total of RM2,000, transport minister Anthony Loke said.
Details applicable to models from Perodua will be announced by the carmaker later, the transport minister added.
Old vehicles surrendered under the Online Vehicle Deregistration System (e-Dereg) by the road transport department (JPJ) will be disposed of legally through authorised automotive treatment facilities (AATF), licensed disposal centres that ensure vehicles are scrapped in a controlled, professional manner in compliance with environmental standards, the transport ministry stated.
Although Sabah and Sarawak are yet to have AATFs, the matching grant programme also applies to the East Malaysian states on inclusivity grounds, Loke said. The matching grant programme will commence this month upon approval of the budget, the minister added.
Loke also clarified that the programme is aimed mainly at helping owners of idle or low-value cars, and if owners feel that their cars have more value on the used market, they can proceed in that direction.
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