SHAH ALAM – Malaysia is not ready to mandate the disposal of vehicles aged 20 years and older, despite the government announcing expanded rebates for several local car models.
Automotive analyst Hezeri Samsuri stated that many developed nations also lack laws requiring the compulsory scrapping of ageing vehicles.
Instead, these countries rely on periodic inspections to ensure the roadworthiness and safety of their vehicles.
He revealed that the RM10 million allocation under Budget 2026 remains insufficient to cover more than 5,000 vehicles.
This is particularly concerning given that 4.07 million vehicles are recorded as having inactive road tax for three years or more, effectively classifying them as abandoned.
“This is a starting incentive. I believe that if more vehicle disposal centres are established, or if they can generate income by purchasing old cars at reasonable prices, Malaysian consumers will gradually dispose of their ageing vehicles themselves.
“Owners no longer wish to keep vehicles for too long due to high ownership costs and the requirement for periodic inspections.
“Whatever the case, the government must be cautious; any measures taken should not burden lower-income groups. No matter how poor a car’s condition, it is still far safer than using a motorcycle to transport a family,” Hezeri told Sinar.
Recently, Transport Minister Anthony Loke revealed at the launch of the Old Vehicle Replacement Matching Grant Programme in Putrajaya that 4.07 million vehicles—representing 20.7 per cent of vehicles nationwide—had inactive Motor Vehicle Licences for three years or more.
He pointed out that these vehicles could potentially be categorised as abandoned, posing risks to public safety, causing environmental pollution, and disrupting local communities.
More worryingly, many Malaysians continue to use vehicles aged over 20 years, not out of choice, but due to financial constraints.
The matching grant was introduced as a targeted initiative to encourage the structured and responsible disposal of ageing cars.
Under the programme, each eligible recipient will receive a matching grant of up to RM2,000 from the government, alongside equivalent incentives from local manufacturers, totalling rebates of up to RM4,000 depending on the model selected.