A matching grant of up to RM4,000 will be offered to encourage vehicle owners to dispose of their old vehicles and purchase new national vehicles.
As announced by Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim during the tabling of Budget 2026, the government will work with national carmakers to provide this grant.
The Madani administration will match the grant offered by Proton or Perodua, resulting in an RM8,000 rebate on the old car, which can be used to purchase a new national car.
The Malaysian Automotive Association (MAA) suggests that this initiative is a good step towards End-of-Life Vehicles (ELV), but recommends including other Completely Knocked Down (CKD) cars.
Author's summary: Government offers grant to scrap old cars.