Out With The Old, In With The New: Govt Offering Grants To Old Vehicle Owners

I remember the few times I went for a drive with my friends, to either lepak around the Klang Valley or even travel to different states to explore their beauty, and just notice these old school cars that used to be common during my younger years – the old Wiras, Sagas, Satrias, Kancils and Kelisas that just pop out and capture your eye, simply because they are a rare sight nowadays. It was a sight to see, bringing about a nostalgic feel that just sends me back to my younger days.

Those cars that make up the childhood of the 80s and 90s kids are the ones that you can apply for a grant, as local car producers Proton and Perodua are offering up grants with the help from our very own gomen, the Ministry of Transport (MoT).

The Grant That’s Putting Ringgit Back In Your Pocket

Remember during Budget 2026 back in October? Where Prime Minister Datuk Seri Anwar Ibrahim announced a programme that could put up to RM4,000 in your hands for the old Malaysian- made vehicle that you own? Well, now you can make that exchange.

Just last week, the MoT officially launched the programme and encouraged old Malaysian car owners to turn in their 20+ year old companions. To simplify it, imagine it this way, you go up to Proton or Perodua with your vehicle, they do their due diligence of inspecting your car and offering you a sum of money. So let’s say, after inspection they value your vehicle at RM1,250. You trade in your car and they reimburse you with that amount. Then the government will match that same amount. So it’s RM1,250 x2.

But. And this is a big but. If Proton or Perodua value your vehicle at RM4,000 (basically anything above RM2,000), the grant from the government is still RM2,000. Because that’s the cap they have set.

Who’s Eligible And How Much Can You Get?

The government has set aside a total of RM10 million for this programme, which if you do the math, it can help at least 5,000 Malaysians exchange their old vehicle for a new one. So if you’ve ever contemplated to make the switch but never saw the value, now is probably the best time to do so. The main criteria: your vehicle has to be 20 years old or more.

Here’s something important to note: most Proton models are eligible for the full RM4,000 total incentive, except for two models – the new Proton Saga and the Proton e.MAS 5, which will only get you RM2,000. Perodua models are also part of this programme, though the specific breakdown for each model will be announced once they’ve finalised the details.

How Does It All Work?

Step 1: Visit Participating Showrooms: Head to your nearest participating Proton or Perodua dealership and bring your 20+ year old car along with any necessary documents.

Step 2: Get Your Old Vehicle Assessed: The Sales Rep will assess your vehicle and tell you it’s trade-in value

Step 3: Choose Your New Car: The amount of rebate you receive also depends on which car you’re buying

Step 4: De-register Your Old Vehicle: You can easily do it via JPJ’s Online Vehicle Deregistration System (e-DeREG) and they will arrange for the disposal of your old vehicle in compliance with environmental standards via the Authorised Automotive Treatment Facilities (AATF).

The Bigger Picture

The Transport Minister, YB Anthony Loke, was clear about who this programme is really for: “If some feel that their cars have more value in the second-hand market, that’s fine, but we are aiming to help owners with cars that are long at the roadside.” This is about helping Malaysians who have old cars collecting dust, cars that would cost more to fix than they’re worth, cars that have become more of a burden than a blessing.

The numbers tell a story that’s hard to ignore: as of December 2025, Malaysia had nearly 19.7 million registered cars. Of those, over four million had inactive road tax for three years or more. That’s four million vehicles just sitting there, aging, rusting, taking up space. And last year alone, we sold a record 820,000 new vehicles. 

But this programme isn’t about adding more cars to our roads – it’s about taking the old, unsafe ones off. This serves as Malaysia’s first major step towards implementing an End-of-Life Vehicle (ELV) policy, something that countries with mature automotive industries have had for years. It’s about retiring old cars responsibly, where safety and environmental concerns are taken seriously, and where our national car manufacturers can help Malaysians upgrade with vehicles that offer more protection on the road.

For those of us who remember when our parents drove us to school in those very same Sagas and Kancils, there’s definitely a bittersweet feeling to all this. But perhaps it’s time to let those old friends rest, to trade in the nostalgia for something that’ll keep our families safer on the road. And with up to RM4,000 to help ease that transition, the government and our national carmakers are making it a little easier to say goodbye.

YB Anthony Loke, made it clear during the launch: this isn’t just about getting old cars off the road. It’s about keeping Malaysian families safer. We’ve seen too many tragic accidents lately. These incidents reminded us that vehicles older than 20 years can be safety risks, lacking the modern features that give that extra layer of protection that may just save lives.

Goodbye Nostalgia, Hello Safety Features

Next time I go on the road, the possibility of seeing those old cars that instantly brings me down memory lane will be much lesser, but what’s more important is knowing that the people are equipped with the safety features that comes with these newer vehicles. 

But we should always pay tribute to these cars of old, as they were the ones that paved the way for the quality of cars we have on the road today.

Details on the exact application procedures are still being finalised, so keep your eyes on announcements from JPJ and the participating car manufacturers. But if you’ve got an old car that’s been sitting idle, this might just be the nudge you need to finally make that change.