Government Grant for Scrapping Old Cars
A matching grant of up to RM4,000 will be offered to encourage vehicle owners to dispose of their old vehicles and purchase new national vehicles.
As 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, for vehicles aged more than 20 years.
The Madani administration will match the grant, resulting in an RM8,000 rebate on the old car, which can be used for the purchase of a new national car.
The Malaysian Automotive Association (MAA) believes this is a good step towards End-of-Life Vehicles (ELV), but suggests that it should include other Completely Knocked Down (CKD) cars.
Author's summary: Government offers RM4,000 grant to scrap old cars.
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