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The government has introduced a new programme to encourage owners of vehicles aged over 20 years to retire their old cars or motorcycles in favour of newer, safer, and more environmentally friendly models
Launched by Transport Minister Anthony Loke yesterday, 27 January, the initiative aims to address safety concerns and reduce long-term costs associated with ageing vehicles.
The launch event was attended by ministry officials and key players from Malaysia's automotive industry.
Under Budget 2026, Loke said the government has allocated RM10 million to the programme — officially known as the Matching Grant Programme for the Replacement of Old Vehicles — which is expected to benefit around 5,000 vehicle owners nationwide.
Eligible recipients can receive a grant of up to RM2,000, which will be matched by participating local vehicle manufacturers, bringing the total incentive to as much as RM4,000 to offset the cost of purchasing a new vehicle
"This matching approach ensures that the government, industry, and rakyat share responsibility, while public funds are used efficiently," Loke said.
He described the programme as practical, targeted, and high-impact, noting that many Malaysians continue using vehicles over 20 years old due to financial constraints rather than reluctance to upgrade.
"Old vehicles are generally more prone to mechanical failures, lack modern safety features, and do not meet current safety standards," he said in his keynote address.
The initiative is supported by the Road Transport Department's (JPJ) Online Vehicle Deregistration System (e-DeREG), which allows owners to cancel their vehicle registration without visiting a physical counter
According to Loke, the system makes the process even faster, more transparent, and more user-friendly.
He urged eligible vehicle owners to take advantage of the programme to improve road safety, contribute to a cleaner environment, and reduce long-term expenses.
He added that further details on eligibility criteria and application procedures will be announced by the ministry in due course.
