Government Grant for Scrapping Old Cars
The Malaysian government, along with national carmakers, will offer a matching grant of up to RM4,000 to encourage owners to dispose of vehicles over 20 years old and purchase new national vehicles.
This initiative was announced by Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim during the tabling of Budget 2026.
The government will match the grant offered by national carmakers, such as Proton or Perodua, up to RM4,000, resulting in an RM8,000 rebate for the old car.
The Malaysian Automotive Association (MAA) considers this a good step towards End-of-Life Vehicles (ELV) but suggests including other Completely Knocked Down (CKD) cars.
Author's summary: Government offers RM4,000 grant to scrap old cars.
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