PUTRAJAYA: The Transport Ministry has launched the "Matching grant programme for the replacement of old vehicles".
Under this programme, eligible recipients will receive a matching grant of up to RM2,000, which will also be matched by national automakers Proton and Perodua.
This means eligible new Proton and Perodua car buyers will receive a rebate of up to RM4,000.
News reports also pointed out that the rebate of up to RM4,000 applies to all Proton models, except the latest Saga and all-electric e.MAS 5.
The latest Saga and all-electric e.MAS 5 will only qualify for a matching grant of up to RM1,000 - which means eligible buyers will receive a rebate of up to RM2,000, according to news reports.
Further details on eligibility requirements and application mechanisms will be announced by the Transport Ministry in due course.
Through the Budget 2026, the government has allocated RM10 million to assist 5,000 vehicle owners to replace their old vehicles of more than 20 years with newer, more modern, safer, energy-efficient, and environmentally friendly vehicles.
In a statement, the Transport Ministry said this programme forms part of the government’s ongoing efforts to reduce the number of old vehicles that are no longer safe for use on the roads, thereby lowering accident risks and protecting the lives of road users.
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 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.
The implementation of this programme is further strengthened through the use of the Online Vehicle Deregistration System (e-DeREG) by the Road Transport Department (JPJ), enabling a
digital, fast, and transparent deregistration process without requiring physical visits to service counters.
Old vehicles surrendered under this programme will be disposed of legally through Authorised Automotive Treatment Facilities (AATF) — licensed disposal centres that ensure vehicles are
scrapped in a controlled, professional manner and in compliance with environmental standards.
Through the AATF mechanism, vehicle disposal will:
- Prevent misuse of vehicle identities and registration numbers;
- Ensure old vehicles do not illegally return to the roads;
- Safely manage waste and recyclable components; and
- Support environmental sustainability and the circular economy.
This initiative also helps reduce abandoned vehicle issues, improve environmental cleanliness, and enhance the image of cities and communities.
