Car sales in Malaysia are continuing to drop, and given that our protected car industry has many government-linked players including our national car manufacturer, it won’t be long before they step in with some kind of incentive program that actually works and appeals to the rakyat other than the earlier proposed car-scrapping scheme that wanted to put an age limit to cars on the road and force you to scrap your old cars for a measly sum. This new proposal sounds alot more appealing, IF I am interpreting the news reports correctly, otherwise it is still the same old thing they’ve been proposing, which I suppose is decent if it is voluntary.
The Ministry of International Trade and Industry is proposing a RM 5,000 incentive scheme if someone with a car that’s 15 years old or older sells their car and buys a new one. So he doesn’t need to scrap his car for a pathetic amount, he can actually sell it off for whatever value it has and on top of that get an additional RM 5,000 to buy a new vehicle. If my assumption is wrong, you scrap a car for the RM 5,000 and that’s it. How the RM 5,000 will be given has not been decided yet though. It could be a reduction in excise duties and sales tax or other ways safer and less prone to abuse than giving cash directly to the owner.
Another plus point is there is nowhere in the news reports that this would be restricted to new Protons only, though we don’t know the final details yet. Nothing is confirmed yet as the proposal still needs to be tabled.