The Malaysian government has launched a new matching grant program for users of cars that are more than 20 years old. The Transport Ministry’s initiative aims to gradually remove old, dangerous, and polluting vehicles from the road. The program was launched by Transport Minister Anthony Lok on Tuesday.
He said it is a practical and targeted initiative that will bring direct benefits to the general public. At the same time, it will play an important role in road safety and environmental protection. The government’s move is seen as part of a long-term transport reform.
Why This Initiative
The Transport Minister said that many Malaysians use cars that are more than 20 years old despite not wanting to, due to financial constraints. These cars are generally less safe, consume more fuel and often have mechanical problems. In addition, these vehicles fail to meet current safety standards.
As a result, the risk of accidents increases, and there is a risk of loss of life on the road. Keeping this reality in mind, the government is providing financial incentives to replace old cars.
Grant Structure
10 million ringgit has been allocated for this program under the 2026 budget. This will benefit about 5,000 car owners nationwide. Each eligible applicant will receive a maximum government grant of RM2,000. This amount will be matched by national car manufacturers such as Proton and Perodua.
This will bring the total discount to a maximum of RM4,000, which will significantly reduce the cost of buying a new car.
Implementation Process
The program will be implemented through participating showrooms, and car owners can apply immediately. Old cars can be deregistered through the Road Transport Department’s online vehicle deregistration system. This will make the entire process fast, transparent, and user-friendly.
The deregistered vehicles will be destroyed in an environmentally friendly manner through an approved automotive treatment facility. This will reduce the risk of illegal scrapping and environmental pollution.
Safety and Statistics
According to the Road Transport Department, the number of registered cars in Malaysia as of the end of 2025 is about 19.69 million. Of these, about 20 percent of the cars have not had their road tax renewed for more than three years.
It is feared that many of these cars are at risk of being abandoned. Such vehicles pose a threat to road safety and public health. One of the government’s goals through this new program is to reduce that risk.
Economic Impact
The government hopes that this initiative will bring new momentum to the local automotive industry. This will increase demand for domestic vehicles and activate the manufacturing sector. It will also create employment, increase investment, and have a positive impact on the supply chain. The Transport Minister said that this program is a reflection of the fruitful and pragmatic policies of the Madani government. He urged eligible citizens to seize this opportunity.
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@vanakkammalaysia Govt allocates RM10 million grant to help 5,000 owners retire old vehicles, says Anthony Loke latest vanakkammalaysia Govt allocates RM10million grant help 5000owners retire oldvehicles says AnthonyLoke trendingnewsmalaysia malaysiatamilnews fyp vmnews foryoupage
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