Subscribe to our FREE Newsletter, or Telegram and WhatsApp channels for the latest stories and updates.

The government has confirmed the Vehicle Replacement Matching Grant Programme will continue into 2027, allowing owners of cars aged 20 years and above to trade in their vehicles for a new Proton or Perodua and receive a combined rebate of up to RM4,000.

The programme was first introduced under Budget 2026.

Its extension was confirmed in key budget documents compiled by the Ministry of Finance (MOF).

Under the structure, the government contributes up to RM2,000, matched by the participating national carmaker — Proton or Perodua — for an equivalent amount.

The total allocation stands at RM10 million, with an estimated 5,000 car owners expected to benefit.

The old vehicle must be deregistered through the Road Transport Department’s (JPJ) e-DeREG system and scrapped at an authorised automotive treatment facility.

It cannot be resold to a third party or returned to the road.

@protonfuad

Korang dah ready? #fuadproton

♬ original sound – fuad proton – fuad proton

How Much You Get Depends on What You Buy

The amount received depends on the new model selected.

For Proton, the full RM4,000 rebate — RM2,000 from the government, RM2,000 from Proton — applies to the X50, X70, X90, S70, Persona, Iriz, and e.MAS 7.

The Saga and e.MAS 5 qualify for a reduced rebate of RM2,000 in total, split equally between the government and the manufacturer.

For Perodua, the full RM4,000 rebate applies to the Ativa and Aruz.

The vehicle being traded in must have been manufactured in 2006 or earlier.

The engine and chassis numbers must remain intact and legible for deregistration purposes.

The vehicle must be registered under the applicant’s name or that of an immediate family member.

The car does not need to be in roadworthy condition.

The Case for Scrapping, Not Selling

Malaysia’s vehicle fleet carries a significant proportion of ageing cars.

Vehicles over 20 years old typically predate modern passive safety standards, including electronic stability control and updated crumple zone requirements.

The programme is structured as an incentive rather than a mandate — participation remains voluntary.

The scrapping requirement closes a secondary market loophole.

Without it, subsidised trade-ins risk funding a cycle in which old vehicles re-enter circulation under new ownership rather than leaving the road permanently.

Because the program requires your car to be permanently scrapped (not resold), you should look at the deal through different scenarios.

For a car that no longer runs or holds little resale value, the RM4,000 discount on a new national car is a straightforward gain.

Share your thoughts with us via TRP’s Facebook, X, Instagram, or Threads.