Government Grant to Scrap Old Cars
The government will offer a matching grant of up to RM4,000 to encourage vehicle owners to dispose of their old vehicles and purchase new national vehicles.
This was indicated by Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim during the tabling of Budget 2026.
The Madani administration will match the grant offered by national carmakers, such as Proton or Perodua, resulting in an RM8,000 rebate on the old car.
The Malaysian Automotive Association (MAA) believes this is a good step towards End-of-Life Vehicle (ELV) management, but suggests that it should include other Completely Knocked Down (CKD) cars.
Author's summary: Government offers RM4,000 grant to scrap old cars.