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Budget 2007 to Introduce Car Scrapping Policy?

Posted on August 30th, 2006 in Malaysia Financial News, Malaysia Personal Finance |

Budget 2007

Here’s a translated piece from Nanyang.com.my on the Car Scrapping Policy which might be revealed in the upcoming Budget 2007 announcement. (Many thanks to reader lekboon for the help in translation.)

[Translation begins...]

The government might be announcing the scrapping policy for cars aged more than 15 years in the upcoming Budget 2007, with reimbursement made to the car owners respectively by the scrapping company.

Accordingly, the main reason for the scrapping is to enhance the efficiency of the traffic, the safety of the road users as well as protecting the environment.

According to the auto industry experts, once the policy takes effect, it should be able to boost car sales and get business moving again. Market experts also predict that the national auto maker Proton will be one of the main beneficiaries under the new car scrapping act. Sources also said Proton will be making reimbursements according to market rate and the age of the car.

There are about 80,000 registered cars that are over 15 years old on the road, and a big portion of them are Proton-makes.

It’s also reported that under the policy, Proton will be accepting vehicles manufactured by any manufacturers, which means a non-Proton car owner can scrap their vehicles with Proton, but under the condition that the car owner must purchase a new Proton car.

Proton’s discouraging sales has made the national auto maker anxiously waiting for the scrapping policy to be implemented.

With the increasing number of vehicles on the road, old vehicles will pose threats to the traffic safety, environment and effectiveness in using the resources.

In most countries, scrapping policy is no news as scrapping a car and swapping a new one in return is part of the normal cycle in car ownership. Developing countries such as China has also been practicing the scrap and reimburse policy, whereas Singapore has long been providing perks to car owners to upgrade to newer cars.

[...end of translation]

What say you, my dear fellow Malaysian? Are we ready to take up bicycle-riding?





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  • There aren't even proper bicycle lanes in Malaysia, I don't want to commit suicide :( Even walking at night isn't safe. This is really screwed up man.
  • KY
    this is a total BS, there are cars over 15 years and still with better quality than a new national car.
  • Brian Ng
    Even today Proton quality is not up to Japan status. The Korea can create their technology. Malaysia is only buy technology. But the funny thing is they keep telling people it is Malaysia technology.

    Malaysia Government when you are going to listen to your people. Proton do not bring any economic benefic to our country. The Car Scrapping Policy won’t help the automobile sector. Because the main purpose of the policy is to boost up the proton sales. Some for more than 15 years is still better than Proton.
    Car Scrapping Policy is going to kill all the Kampung people. Proton is the most expensive assembly car in the world.
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