Today’s new Mini Budget stimulus package announced by Deputy Prime Minister Datuk Seri Najib Razak totaled to RM60 billion and as expected, it includes the proposed voluntary scrap scheme.

Anyone who scraps their cars which are older than 10 years will receive a RM5,000 discount to buy a new car, but only a new Proton or Perodua. Those who are looking at Nazas, Kias, Hyundais, Toyota, Honda or even a Chinese vehicle despite being CKD and have invested in Malaysia will not qualify. There is also zero incentive for those looking at a newer 2nd hand car, even if it is a Perodua or Proton.


No further details were announced – it’s best to go to your Proton or Perodua dealer to find out how you can scrap your car for the discount and whether all you’re going to get is RM 5,000 or you’ll get to keep the scrap value amount plus the RM 5,000. Scrapping your car could earn you perhaps RM 1,000 or more so that would be an extra bonus to the RM 5,000, but my guess it you won’t get any extra cash.

Proton already has a scrapping scheme running since the year 2007 called Proton XChange where old cars over 10 years old and owned by the owner for at least 6 months, registered and roadworthy can be traded in for RM 5,000 and so far up to 2,700 of such discounts have been issued. Once a car has been surrendered to Proton under the scheme it will be de-registered from the Road Transport Department and scrapped. As of now, Proton will still run its Proton XChange scheme, so essentially it will be the same thing as the government’s scrapping scheme. When I say the same, it truly is almost the same as part of the RM5k will be born by Proton and Perodua and the rest by the government, as with the Proton XChange program.

Other than the scrapping incentive scheme, the govt will also be pumping in an additional RM 200 million into the Automotive Industry Development Fund.