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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I thought last time said gov will match till 4k?
Why so eager wanting people to change cars? Don’t we have enough cars on the road? They should remove those abandon cars on the road first.
because they will trade in their old cars . one plus one minus one still equals to one .
why new saga excluded ? many b40 buyers are eager to trade their old junk for a new junk.
Most people holding to their 20 years old car for 2 reasons
1. Car still functioning fine, have extra cars at home OR have sentiments value. No reason to change
2. Not able and not willing to spend on a new car
On the grand scale of things, those who drive 20 years old car don’t really bother about “newer, safer, more energy efficient”, the above 2 reasons is the primary reasons.
Minister Lok, please tighten the rules so this program really help the needed. Limit the new car price to below RM50k, T20 not eligible, car cannot be resell for the first 3 years.
Hello Mr B40 pls go take the train and public transport. Dont go buy car just for face. You will bankrupt. Ride a motor is more convenient and logic for you too. Car is not a necessity for you. You take care of your survival first.
can i sell my kancil 660 for 2k and get another 2k from gomen? i would clear away the covered lalang and wash it sparkling clean for free.
Who mostly use these old junks, poor old fags,
No cars == No legs == any where also cannot go
Unless get into new DEBTS
b40 buyers are eager to trade in their old junk to buy a new junk
if gomen offer 15k then people like you will say govt is recklessly spending taxpayer money
When will sarawak get this offer? Next year or 10year after?
they didnt vote in favour of current federal govt, they sabotaged petronas even after being offered 40% OnG revenue . definitely they dont deserve to get this offer.