scrapped carThe Edge reports that the government has approved the voluntary car scrapping policy previously suggested by some parties, in hopes that it will help boost the market.

The voluntary scrapping policy covers cars older than 15 years old, and offers up to a RM5,000 subsidy. This means that if your car is worth less than RM5,000 you will not get RM5,000 but instead the value of your car, to be determined based on make, quality and market price. The subsidy of up to a maximum of RM5,000 is also not in cash form, but to be used to subsidize the purchase of a new Proton car.

The policy is expected to be announced by September 7 2007, in time for the next national budget. Nothing wrong with a voluntary policy of course, and those there is now an additional way for interested parties to get rid of their old car.