MOT launches matching grant programme to replace cars 20 years and older for new Proton and Perodua models – AutoBuzz.my
The Minister of Transport, Anthony Loke, has officially launched the Matching Grant Programme today, a scheme designed to aid Malaysians in swaping their older vehicles for newer, safer, and more energy efficient cars.
Originally announced by Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim during the tabling of the 2026 national budget (Belanjawan 2026), the scheme allows eligible recipients (with cars of 20 years and older) to receive a matching grant of up to RM2,000 from the government when they trade in their older vehicles for newer ones.
It’s dubbed a matching grant, as the actual amount depends on the amount offered by the participating carmakers, which are currently our two national marques, Proton and Perodua.
This grant mechanism will see the government match the over-trade value offered by the manufacturer when buying a new car. For example, if Proton offers a RM2,000 over-trade value, the government will then contribute a matching grant of another RM2,000, giving the owner a total of RM4,000 to go towards the purchase of a new Proton vehicle.
It should be noted that the Proton Saga and the Proton eMAS 5 (stylised as e.MAS 5) will only qualify for a lower grant of RM1,000. Detailed amounts for Perodua models will be announced by the carmaker later, the transport minister added.
To fund the programme, the government has allocated a total budget of RM10 million, which is enough to assist approximately 5,000 vehicle owners in replacing their ageing rides.
The initiative is a response to some staggering figures. JPJ data shows there are over 19.69 million registered cars on the road as of 31 December 2025. Of these, 4.07 million cars—representing 20% of the total—possess a road tax that has been inactive for three years or more.
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Beyond just clearing out these presumably abandoned cars, the programme is also an attempt by the government to lower accident risks. These older vehicles usually lack modern safety features and are far more prone to mechanical failure, and thus replacing these vehicles is seen as a “high-impact road safety intervention”, the ministry said in a statement.
Old vehicles surrendered under this programme will be disposed of legally through Authorised Automotive Treatment Facilities (AATF) nationwide. These are licensed disposal centres that ensure vehicles are scrapped professionally in compliance with environmental standards.
Additionally, the implementation is supported by the use of the Online Vehicle Deregistration System (e-DeREG) by the Road Transport Department (JPJ). This enables a digital and transparent process without requiring physical visits to service counters.
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