Govt Offers Up To RM4,000 To Replace 20-Year-Old Cars

The Malaysian government has rolled out a new Matching Grant Programme to help car owners swap out vehicles over 20 years old for safer, modern models from Proton or Perodua. 

Transport Minister Anthony Loke announced that eligible participants could receive up to RM4,000 with a combination of RM2,000 from the government and a matching contribution from the carmaker.

With a total allocation of RM10 million, the programme is expected to benefit around 5,000 vehicle owners. 

“This scheme isn’t just about helping Malaysians get new cars but it also improves road safety by taking old, inactive vehicles off the roads,” Loke said at the launch.

The initiative also tackles another pressing issue which is abandoned or inactive cars. JPJ data shows that over four million registered vehicles in Malaysia haven’t renewed their road tax for three years or more. 

Traded-in cars will be scrapped responsibly at licensed treatment facilities, ensuring environmental compliance and preventing them from returning to the roads illegally.

"This program supports the local automotive industry, boosts domestic demand, and stimulates economic activity. While participation is voluntary, the focus is on long-idle or low-value cars rather than those still fetching good resale value," the minister added.

Proton had previously run a similar trade-in programme for cars over 15 years old, which saw more than 4,000 customers take part. This new initiative, part of Budget 2026, expands that effort and aligns with the government’s push for safer roads and better traffic management.

Details on eligibility and how to apply will be announced soon.