Do you have an old car that’s no longer running, and the cost of reviving it doesn’t make sense compared to the low value of the thing? Instead of letting it rot away and take up space, how about scrapping that hunk of metal?
In this evening’s tabling of Budget 2026 by Datuk Seri Anwar Ibrahim, the PM and finance minister announced that the government will, together with national carmakers, offer a matching grant (geran padanan) of up to RM4,000 for your old car.
A matching grant is exactly what it sounds like. If Proton or Perodua offers RM4,000 for your old car in a ‘cash for clunkers’ programme, the Madani administration will match it with a grant of RM4,000, meaning that you’ll get RM8,000 for your old car, which can be used for the purchase of a new national car.
Likewise, RM3,000 from the carmaker will be matched by RM3,000 from the gov’t, for a total of RM6,000. The OEMs can offer more, but the gov’t’s carrot maxes out at RM4,000. The only T&C announced is that the car to be scrapped must be over 20 years old.
Aside from giving a sales boost to the carmakers in Rawang and Tanjong Malim, the gov’t theory is that cars over 20 years old are not very safe. If you don’t believe this, check out our eyewitness account of an NCAP-style crashing of a 1993 Proton Wira. To read up more on the proper way to scrap a car – which is much easier now thanks to e-Dereg – click here.
Looking to sell your car? Sell it with Carro.
Are there really that many 20 year old cars still around? Perhaps 15 year old cars are more reasonable.
CRV Honda 20 years old. Need to change gear box and it would be running well.
a lot. and these old cars are unsafe by today’s standards. Not just to the owners themselves, but to other road users because these old cars lack active safety features that collectively keep roads safer.
I’d rather pay 4k to get rid of bad drivers and riders.
plenty of proud owners happily driving their junk bmw e60 and civic fd around still
Super a lot. I think 20% on the road, could be understatement
Scrap milo tin to buy another milo tin
Now most models under Geely already. Not that tin kosong anymore
The rakyat would like to offer matching grant for politician who has “served” 20 unproductive years to retire as well.
Well said
that mechanism already exists, its called “polls”, u just dont vote for that politician during election and politician will force to retire.
oh sorry wait i forgot many politicians still enter using backdoor as senator or GLC head or as supreme council
if rakayat dont continue voting for them then the polticians could finally retire. TQ kanglawi voters for evicting Tun.
Pak Lah gave RM6k in 2009
but pak lah also gave petrol RM2.7 per liter
All vehicles should be subject to a full road worthy inspection every 12 months. And need to pass to drive on the road… I’ve seen so many vehicles driving around that certain don’t look or sound road worthy….
If such enforcement takes place, the government will lose their primary vote bank.. i.e. all those “Mat Cemerlang” types who graduated from bikes to cars..
LOL… My neighbour is a sole proprietor construction contractor and he have 2 cars which both are 20 years old. He is already financially not well and has to scrap his 2 cars. if this goes ahead, he will not have any cars that he can use to fetch his workers. if he have to buy new cars, he wouldn’t be able to afford it coz he has been struggling to keep his business afloat.
Do you see anywhere mention “mandatory” in the article? So brilliant, make issue out of nothing.