Road reset: A mechanic repairing a car at a workshop in Johor Baru. Experts say the government’s RM4,000 matching grant for owners of vehicles over 20 years old to buy new national cars could pave the way for improved road safety and vehicle quality standards in Malaysia.
RM4,000 grant to replace old cars seen as step towards safer roads
JOHOR BARU: The government’s RM4,000 matching grant for owners of vehicles over 20 years old to buy new national cars could pave the way for improved road safety in Malaysia, says Universiti Teknologi Malaysia senior lecturer Dr Safizahanin Mokhtar.
She said the initiative was a positive start towards achieving better vehicle quality standards nationwide.
“Most developed countries have vehicle scrapage policies that mandate replacing old vehicles after a certain number of years on the road, as seen in Japan and Singapore.
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“These policies prevent road accidents and address pollution issues,” said the Faculty of Built Environment academic in an interview.
She noted that such measures could help reduce the prevalence of abandoned or ageing vehicles.
“It is time for Malaysia to have its vehicle scrapping regulations, and I believe the government is in the early stages of planning for that.
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“This matching grant is a good start, and perhaps in the future, the government can expand it beyond local cars to include other brands and next-generation vehicles such as electric cars to promote a low-carbon society,” she added.
Safizahanin said the policy could also help change public attitudes about old vehicles and environmental sustainability.
However, she said the government should conduct further studies to evaluate the relationship between the grant and its impact on reducing road accidents.
“Presenting such data will help build public confidence and show the effectiveness of the policy in improving vehicle quality standards,” she added.
Johor Automobile Repairmen’s Association chairman Ku Chong Sin agreed that the matching grant and a strong national vehicle scrapping programme would have long-term benefits for road safety as well as people’s wallets.
“This is because older vehicles often pose risks due to the wear and tear accumulated over years of use.
“Some new cars may begin to encounter problems after just three or four years, depending on the make and model – not to mention vehicles that are two decades old.
“Common issues include wiring faults, leaks, engine problems, and damaged fuel tanks,” he said.
Ku added that environmental factors, such as Malaysia’s hot weather and driving habits, contribute to faster vehicle deterioration, particularly for European makes as the parts are not designed for tropical conditions.
“The RM4,000 matching grant is a good deal for old car owners, as they can dispose of their aged vehicles and get a new, safer one instead of selling them as scrap metal,” he said, urging the government to promote the incentive widely so that more people can benefit from it.
Under the Budget 2026 announcement, Prime Minister Datuk Seri Anwar Ibrahim stated that owners of vehicles older than 20 years would be eligible for a grant of up to RM4,000 when they scrap their old vehicles and purchase a new national car.
Anwar, who is also Finance Minister, said the grant, introduced in collaboration with national carmakers, aims to encourage the removal of vehicles that pose safety risks.
