RM1,000 Trade-In Subsidy For Old Motorcycles: Transport Ministry Considers New Scheme

Got an old kapcai sitting in your porch gathering dust? You might soon be able to cash it in for a shiny new ride. According to a report by Sin Chew Daily, the Ministry of Transport (MOT) is currently evaluating a proposal to introduce a RM1,000 trade-in subsidy for motorcycle owners who swap their aging two-wheelers for newer models.

Transport Minister Anthony Loke revealed that the ministry is giving serious thought to expanding its successful vehicle replacement initiative to cover two-wheelers, responding to proposals put forward by the Malaysia Motorcycle and Scooter Dealers Association (MMSDA).

1. Expanding Beyond Cars To Cover Two-Wheelers

The proposal stems from discussions with the MMSDA. Transport Minister Anthony Loke noted he will deliberate with the ministry's secretary-general to see if existing ministry funds can kickstart the plan. If approved, the scheme could launch as early as late 2026 or early 2027.

2. Learning From The Sold-Out Car Replacement Scheme

This move follows the success of the Matching Grant Programme for the Replacement of Old Vehicles. Under that scheme, a allocated budget of RM10 million offered a RM2,000 government grant matched by local carmakers (Proton and Perodua) to replace cars aged 20 years or older. Demand was so massive that funding was completely exhausted within three months.

3. Why The Subsidy Amount Is Lower For Bikes

1985 Proton Saga in Kuala Lumpur, pictured circa 1990. (Photo credit: davocano / CC BY 2.0)

Because the sheer volume of motorcycles on Malaysian roads vastly outnumbers cars, setting a RM2,000 rate per vehicle would drain resources rapidly. As a result, the proposed subsidy per motorcycle is pegged at roughly RM1,000 to allow a much larger pool of riders to participate.

4. Powered By Special Plate Number Sales

Instead of waiting for extra funding allocations from the Finance Ministry, Loke indicated the programme could be funded directly through revenue generated by the Transport Ministry itself. Earnings collected from auctions of special vehicle registration numbers, which are routinely funneled back for road safety initiatives, could be channeled into this motorcycle trade-in initiative.

5. The Catch: Strictly For Locally Assembled (CKD) Bikes

There is a vital prerequisite for riders looking to grab the discount. To ensure public funds directly stimulate local industry, incentives will only apply if the new replacement motorcycle is a locally assembled (CKD) model. Local manufacturers must also actively participate in matching or facilitating the disposal process.