A proposal to establish a mechanism for an Vehicle End of Life (ELV) policy is being looked at, but this will explore a voluntary approach rather than adopt a mandatory direction, acccording to Malaysia Automotive, Robotics & IoT Institute (MARii) CEO Datuk Madani Sahari.
Speaking to reporters following the press briefing on the 2020 outlook for the local automotive industry on Tuesday, he said that the matter would be discussed when the new transport and international trade and industry (MITI) ministers have been appointed.
“An ELV policy has never been implemented in Malaysia. It is my belief that if we set up a system of voluntary – and not compulsory – ELV, it will benefit the people. They can let go of their old cars and maybe the government can subsidise this and the OEMs can also contribute to a lower cost. By selling more cars, the government can collect more taxes. It’s a win-win situation for everybody,” he said.
He added that the coming year will see the development of standards in various areas, including that for vehicle inspection, both for roadworthiness and used vehicle evaluation.
The talk of an ELV policy – which would essentially serve to eliminate old vehicles from the road – has been going around for years. In 2009, the ELV proposal included mandatory annual inspections as a requirement for road tax renewal for vehicles aged 15 years and older as a precursor towards the eventual implementation of a full ELV policy.
The policy was soon dropped following public outcry, but has continued to resurface, the latest being last year, when former transport minister Anthony Loke denied there were plans to flesh out the policy by the second quarter of 2019. He said that while there were studies before this, the matter was not under any consideration.
In 2016, the Malaysian Automotive Association (MAA) said an ELV policy would spur the growth of the country’s automotive industry, reiterating a similar call it made in 2014.
Back in 2015, Madani had said that suggestions to implement such a policy through a Cash for Clunkers scrappage scheme was being considered. The then-proposed scheme would allow owners of vehicles aged 10 years or more to obtain a rebate of up to RM5,000 when they trade in their vehicles (regardless of brand) for a new one from any local OEM producer. However, MITI said then that the public wasn’t ready for such a scheme or policy.
The question is, would a voluntary ELV scheme work? Share your thoughts with us in the comments section.
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Madani must made it Mandatory , not voluntary.
Volunteer maca Mana boleh jalan, kena fixed lar, no old car on the road, less pollution, less traffic jam of old car break down road side. Especially no old lorry n busses with black smokes
Betul tu bro. MY ke arah negara bersih lestari,
Start with commercial lorry and bus dulu la. Itu lagi banyak asap, banyak tak safety
Betul tu. Mulakan dari bas dan lori dulu. Jgn dok sibuk dgn kereta
Voluntary policy is fine, not mandatory. Many people hold on to their old car bcos it’s a reliable beater car, just start the engine and it can go anywhere, very good as a backup car, at least one out of many cars they owned. Anyway, maintaining a good old car is way cheaper than paying a debt every month for a new car + maintenance.
Many rural folks WILL be serverly handicap .
Old cars but in working condition ( Proton Iswara, Saga, etc ) are as good if well maintained.
So …. “optional” defeats the purpose of enviromental concerns.
Better MAKE it COMPULSORY.
If ENVIRONMENT is their real concern, THIS IS NOT WHERE THEY SHOULD START. This is something that WILL SEVERELY effect low income citizens, yeahh MOST rural folks are low income earner, will not have a choice but to start paying interest again shortly after they’re free from their previous car loan. CAPITALISM AT IT’S CORE. They just want us to spend more, and boom…our economy is growing.
Start somewhere else, improve public transport, city walkways. Banned old ONLY into the big cities. At least CONVINCE PEOPLE it should work that way. REMOVE HIGH TAX imposed on new cars. That’d surely show how serious our government about environment. BUT NO, even our ROADTAX is still based on engine displacement, NOT EMISSION. They failed to even banned plastic bag at malls & supermarkets. Plastic straws is still everywhere. But they want to BANNED OLD CAR FOR THE SAKE OF ENVIRONMENT? LOL WHAT A JOKE. People are not convinced this is for environment at all.
Exactly. Explain to me WHY i should buy a new car when my current old bugger is still working, and I’m not planning on going long distance travel with it. Buy new car expect money come from the sky ah?
Well, it will be like free leaflets on the counter. No one will complaint its existence whether ppl actually take it or not.
It will never work because we Malaysians in general are whiners and never think of benefits to the country.
They will still be talking about this in 2120.
This issue is cropping up again?While it is a good idea I don’t think it will work here.Maybe there are some who might agree.
The No.1 problem is Car price vs income.
In Malaysia our car prices are high compared to our salary hence most of us ordinary citizens taking 9 year tenure which taking a huge sum out of our income.After 9 years the value hits rock bottom and even with government subsidy the money recoup is nothing to shout about.
That’s why most people do not agree.
Only in countries with high income are able to implement this policy.
Damn these guys talk like our car prices are cheap and competitive. People these days are already burdened with 7 years car loan and 35 years housing loan on a low salary.
Plz make the car price cheaper too boost car sales…
MARii thought 15 years old car can become junk? My civic turbo bought for about RM130K. after 15 years at least will fetch RM25K. government offer RM5K cannot even cover half of my car’s real value.
Again. Do it the simple way.
All cars more than 50 years must scrapped. Compulsory. Unless owner gets vintage car status.
Over 40 years, voluntarily scrapped scheme.
Over 30 years old cars cannot be used in the big cities during peak hours. That means KL/PJ, S.alam, Ipoh, Penang and JB. Used cars must sell them in other towns.
Over 20 years old cars must go for puspakom annual inspection in order to entitle them to enter the city.
Bit by bit we will reduce the number of cars in city roads and reduce the number of jams and carbon footprint.
For new cars, only special registration will be allowed to be used in the cities.. EV or hybrids that have very very low level of emission.
If you want to buy other cars also can, but pay extra 40k on top of normal retail price. Meaning a top spec myvi will cost you 100k. That money will be used to improve the roads and public transportation as well as planting more trees.
10 years old cannot la
minimum 25 years old
then gradually down to min 20 years
This Guy is SICK..
Car scrapping is a western world idea because their cars are cheap due to lower taxes
He never take into account for those lower incomes , elderly pensioners living in the outskirt.
Furthermore market taxes on cars in Malaysia many times higher than most western countries and North American markets
If the Malaysian new car taxes is only 6% like most western countries VAT TAX then this sick guy can suggest his end scrap policy IDEA otherwise please go and implement higher quality , higher technology and safer quality local cars .
VAT (GST) in the world:
Germany 19%, Pakistan 17%, Poland 23%, Spain 21%, Albania 20%, UK 20%, Morocco 20%, Netherlands 21%, Hungary 27%(!)…
Why do you think cars are cheaper in other parts of the world?
Reality is, we can never compare macro economic between countries by simply comparing their tax structures. Even with those high taxes, they may have better purchasing power parity, making it feel cheaper for them with their income, and other benefits covered by their governments. Well, of course it looks(perception) expensive to us with our weak currency, furthermore with our current purchasing power.
Do you know the excise tax in Malaysia can go up to 90% of the value of the vehicle, excluding import tax. Then you have the AP that only benefits certain people. Have ever wondered why you have to pay 50K for AP, for a 5 year old Estima? Well I have.
In the west they font have all these bullshit, just VAT or sales tax.
“in the west they font have all these bullshit, just VAT or sales tax.”
In the west they have up to 27% VAT ON EVERYTHING, not only on cars. You get the point? BTW: If you think the west is so cheap, why don’t you move there Mr. Whiner?
The cars in those western countries may seem cheap on paper partly due to high income but petrol and insurance is high.Also try to repair your car or even ask someone to fix your plumbing at home.. you’ll be surprised..Makes you think twice before moving there
Go play with your toy, pls don’t disturb us unless you cut the vehicle tax !
DO NOT AGREE.
if people can afford financially,sure they will buy new car.
What happen to people who are not financially sound?
Buy a bicycle or take a bus?
Failed to understand how this policy can benefit the owner and country. If trying to achieve what is said in the article, the right thing would be to reduce car prices or rather the tax. The selling price of a car in Malaysia is way way way higher than the actual production / sale price!
Most Malaysians do not have the buying power of a new car, the cost and loan repayment period is a put off, hence people cling to their old car.
There are people who like buying old cars for the driving enjoyment they offer. Cars today feel like mobile phones, like a gadget. High tech yes, but devoid of character. Older cars are simpler, with minimal electronics, so you get the mechanical enjoyment of driving them.
I smell the strong foul stench of cronies and rakyat-blood-suckers.
Rakyat always given the big capati, in everyway.
Why not make like in other countries? Every two years mandatory puspakom check. If found unsafe for road use, cancel the registration.
People who keep their car in safe condition still can use their old cars, people who don’t care about faulty brakes etc. have to buy new one.
All this checking will make someone very rich.
Why have this policy? The father of national car also stepped down already. The 3rd national car may not see its day too.
dey madani let me tell you something..my friend’s 17 y.o wira still running better than most new car out there..some faggots upstairs said no more old car breakdown roadside..i can see lots of H and T brand stranded on emergency lane waiting for tow truck..just maintain your car properly lah..let me give you a better idea if want people to rid their old car..just guarantee they will get loan for new car with very low even waived the interest if they trade in old car..dump off your dumb 5k offer..trust me they just care about loan, not your offer.
I maybe wrong, but the alternative is higher car prices, in some cases quality, most of this older versions are imported and most need a car for mobility for them/friends not loan.
The silver WIRA is the picture for illustraton ONLY is at least 20YO, the famous sticker on the side indicated it might be more than 25YO. Looks disgusting?
IF this WIRA RM50 petrol can run for 300km
IF Campro proton RM50 petrol can run for 260km
WHICH car is more polluting ?
Hello brader Madani….I choose the debt free way of living. I dont want to take up debt every certain period just because ‘to boost the automotive sector’.
Win-win situation my backside.
Go ahead with it but make it voluntary.
perasan negara maju..we pay a lot of taxes already on the car price, yet u want us to buy new car? we are not rich like kunan la
RM5K is too low.. Give closer to RM20K any many people will be happy to scrap their old Nissan Sunny and first generation Protons
My 20 yrs old kelisa is tip top condition and still below 100k km..well may need some maintenance better then my myvv where the door switch need to be changed every 18 months.
REDUCE CAR PRICE. Then can talk ELV. My 22 years old Proton Wira still in good condition and minimum maintenance.
Hoi Madani. Duk diam2 boleh tak. Kereta dah byr 9 thn. Byr bgi nak rak. Msk thn 15 kena scrap. Ko ingat kita ni cop duit ke.
Government want tax money, I want clean air. Seems very simple, why can’t we just switch to emission base road tax?
Want keep your beloved EK9 type r but it’s older and polute more? Just pay more road tax. Cannot tahan already? Switch to new car.
Good for getting rid of old sotong busses and lorries, hit their bottom line, and it’s up to the businesses to decide to keep their clunker and pay more tax, or upgrade.
Will piss those who polute but doesn’t want to pay more tax, but screw them. Lol.
An absolute YES… provide the operator with all necessary licensing for the like of;
(1) Start-up ICO
(2) Scrap metal
(3) 2nd hand goods
(4) Export
The operator would decide on the vehicles to be scrapped through its CSR road map.
Former owner of these cars are not notified, thus no questions of unfairness & unwillingness.
Does not need Government or relevant authorities contribution in term of Ringgit & Sen…….