MOT: NGV Vehicle Phase-Out Due To Safety Concern

In response to Senator Datuk Wira Koh Nai Kwong's inquiry regarding accident rates involving NGV vehicles and the rationale for discontinuing their use starting July 1, 2025, the Ministry of Transport (MOT) cited growing safety concerns on aging NGVs and its associated risks.

According to MOT, NGV vehicles which were widely adopted between 1995 and 2014, now pose significant safety risks as most of their fuel tanks have surpassed its 15-year safe lifespan. Without proper replacement, these aging tanks are prone to failures, endangering both vehicle occupants and the public.

Between 2008 and 2022, multiple accidents were attributed to NGV system failures, some resulting in fatalities. The most recent was the tragic incident which occurred on Nov 28 in Jasin, Melaka, where a NGV taxi’s tank exploded after a crash, killing three people.

The phase-out, which was first announced on November 4, 2024, involves 44,383 vehicles currently registered with the Road Transport Department (JPJ). These comprises 32,137 privately owned vehicles, 9,509 taxis, 2,150 buses and lorries, and 587 heavy machinery.

Despite these seemingly large numbers, NGV vehicles only represent 0.2% of Malaysia’s total registered motor vehicles, excluding motorcycles.

To support affected owners, the Ministry of Transport and PETRONAS NGV Sdn Bhd (PNGV) have launched the NGV Vehicle Transition Assistance Program, which includes three packages:

Transition Assistance for NGV Taxis - Exclusively for NGV taxis registered with the Land Transport Agency (APAD) by Oct 1, 2024. Eligible owners will receive a one-off Setel e-voucher worth RM3,000. Applications for this voucher close on Dec 31, 2024.

Free Removal of NGV Kits - Available to dual-fuel NGV vehicle owners whose vehicles were registered with JPJ before Oct 1, 2024. Owners can have their NGV kits removed for free at appointed workshops. Applications are open until Dec 31, 2024.

Compensation for Pure NGV Vehicles - Owners of single-fuel NGV vehicles are eligible for a one-off payment based on their vehicle’s current market value, appraised by an independent evaluator.

These policies reflect the Ministry’s commitment to public safety and a shift toward sustainable vehicle technologies. While NGVs once played a significant role in Malaysia’s transportation system, their increasing risks due to age and declining relevance have led to the end of their era.

This transition aims to prioritize safety while minimizing disruption for affected stakeholders and encouraging the adoption of safer, greener transportation alternatives.