Government Initiative to Encourage Vehicle Owners to Scrap Old Cars
The government will offer a matching grant of up to RM4,000 to encourage vehicle owners with vehicles aged more than 20 years to voluntarily dispose of their old vehicles and purchase new national vehicles.
As indicated by Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim during the tabling of Budget 2026, the government will work together with national carmakers to provide this incentive.
The Madani administration will match the grant offered by national carmakers, such as Proton or Perodua, of up to RM4,000, resulting in an RM8,000 rebate on the old car.
This initiative is seen as a good step towards End-of-Life Vehicles (ELV) by the Malaysian Automotive Association (MAA).
Author's summary: Government offers up to RM4,000 grant to scrap old cars.