THE government has allocated RM10 million to help about 5,000 vehicle owners replace their old vehicles through the Matching Grant for Old Vehicle Replacement Programme, with a focus only on national automotive brands.
Transport Minister Anthony Loke Siew Fook said the initiative under Budget 2026 is targeted at vehicle owners over 20 years old to encourage the transition to new vehicles that are safer, more efficient and more environmentally friendly.
Through the programme, eligible recipients will enjoy a matching grant of up to RM2,000, which will also be matched by local vehicle manufacturers to reduce the cost of purchasing a new vehicle.
"This matching grant approach ensures that the government and industry share responsibility, thus providing a more meaningful financial impact to the people," he said.
Loke said the programme involved national car manufacturers Proton Holdings Bhd and Perusahaan Otomobil Kedua Sdn Bhd.
According to him, the programme was created as a road safety intervention with the aim of reducing the number of old vehicles that are no longer safe to use on the road.
Old vehicles are usually prone to mechanical failure, lack modern safety features and do not meet current safety standards, thus increasing the risk of accidents.
"Every old vehicle removed from the road through this programme is a risk that has been successfully reduced and a step towards protecting the lives of road users," he said.
Road safety is not just a statistical issue, but rather involves human lives, family safety and community well-being.
The implementation of the programme is also strengthened through the use of the Online Vehicle Registration Cancellation System (e-DeREG) by the Road Transport Department (JPJ) to ensure that the registration cancellation process is carried out digitally, quickly and transparently.
The digitalisation allows vehicle owners to cancel their registration without having to physically attend the counter, thus reducing bureaucracy and waiting time.
Old vehicles participating in this programme will be disposed of legally through the Authorised Automotive Treatment Facility (AATF), a licensed disposal centre that complies with environmental standards. – January 27, 2026
