Do you have an old car that no longer runs and does the cost of breathing new life into it not make sense compared to the low value of the thing? Instead of letting it rot away and take up space, how about throwing that piece of metal away?
In tonight’s Budget 2026 presentation by Datuk Seri Anwar Ibrahim, the Prime Minister and Finance Minister announced that the government, together with national car manufacturers, will offer a matching subsidy (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’ scheme, the Madani government will match it with a grant of RM4,000, meaning you get RM8,000 for your old car, which can be used towards the purchase of a new national car.
Likewise, the carmaker’s RM3,000 will be supplemented by RM3,000 from the government, for a total of RM6,000. The OEMs can offer more, but the government’s carrot is up to RM4,000. The only general conditions announced are that the car to be scrapped must be older than 20 years.
Apart from giving a sales boost to carmakers in Rawang and Tanjong Malim, the government’s theory is that cars older than 20 years are not very safe. If you don’t believe this, check out our eyewitness account of an NCAP-style crash of a 1993 Proton Wira. If you would like to read more about the correct way to scrap a car – which is now much easier thanks to e-Dereg – click here.
Do you want to sell your car? Sell it with Auto.
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