Malaysia’s Ministry of Transport launched a Matching Grant Programme today, aimed at nudging owners of cars aged more than 20 years into newer vehicles with better safety kit and improved efficiency.
The initiative, unveiled in Putrajaya by Transport Minister Anthony Loke is part of Budget 2026 funding and carried a government allocation of RM10 million.
The ministry said the pot was designed to help about 5,000 vehicle owners replace ageing cars that no longer met modern expectations for safety and emissions.
Under the scheme, eligible buyers will receive a government matching grant of up to RM2,000, with a further match coming from participating local manufacturers.
The ministry positioned the “matching” structure as a way to stretch public funds while making the discount more meaningful at the point of purchase.
Participating brands are Proton and Perodua.
The government’s contribution would mirror the “over-trade” value offered by the carmakers, potentially taking the combined benefit to RM4,000 on some models.
However, Loke pointed out the Proton Saga and e.MAS 5 will only qualify for a lower RM1,000 government match, while Perodua’s model-by-model amounts would be announced later.
The ministry said the programme was part of a road-safety push, and it argued that older vehicles were more vulnerable to mechanical failure, tended to lack newer safety features, and could pose a higher crash risk.
The disposal side was built around JPJ’s online deregistration platform, e-DeREG, which the ministry said enabled a faster and more transparent process without counter visits.
Scrapped vehicles would be disposed through Authorised Automotive Treatment Facilities (AATF), licensed centres meant to keep deregistered cars from quietly returning to the road and to handle waste and recyclable parts in line with environmental rules.
JPJ data showed 19.69 million registered cars in Malaysia as of Dec 31, 2025, with 4.07 million carrying road tax that had been inactive for three years or more.
The ministry said more details on eligibility and how to apply would be announced soon.
