What the government announced

The Ministry of Transport launched a RM10 million matching-grant programme in January 2026. It is intended to support about 5,000 owners of vehicles that are more than 20 years old when they replace those vehicles through participating local vehicle manufacturers.

  • Government matching grant of up to RM2,000
  • Old vehicle must be more than 20 years old
  • A participating local manufacturer must provide its own incentive
  • Allocation and programme availability are limited

Why 'up to RM4,000' is not universal

The government contribution matches the participating manufacturer's incentive, subject to the programme limit. Each manufacturer can publish different models, amounts, dates, and conditions. A headline total therefore cannot be applied to every vehicle or buyer without checking the current manufacturer terms.

An example of manufacturer-specific terms

Proton announced a 2026 old-vehicle replacement incentive for its current model range. Its published amount differs by selected model: some models receive up to RM1,000 from Proton while others receive up to RM2,000, before the eligible government match. These are Proton's published terms and should not be assumed to apply to another manufacturer.

What to check about the old vehicle

Before treating the grant as part of your budget, confirm that the registered owner and vehicle meet the current programme conditions and that any financing or ownership restriction can be resolved. The participating manufacturer or authorised dealer should provide the current disposal and evidence checklist.

  • Registered owner and identity details
  • Vehicle age and registration record
  • Outstanding financing or ownership restrictions
  • Required deregistration and authorised-destruction evidence
  • Deadline and remaining programme allocation

What to check about the new car

Confirm that the selected model and variant are included in the manufacturer's current programme. Keep the replacement incentive separate from any monthly promotion, trade-in value, financing estimate, accessories, and booking terms so that the complete offer remains comparable.

Use a Teo Check before booking

Ask for a written check covering the owner, the old vehicle, the selected model, the participating manufacturer's current terms, and the complete authorised-dealer offer. Do not dispose of the old car or pay a booking fee based only on a social-media headline.