KUALA LUMPUR, Oct 10 — The government will introduce a vehicle scrapping incentive worth up to RM4,000 under Budget 2026 to encourage owners of vehicles over 20 years old to replace them with new national cars, Prime Minister Datuk Seri Anwar Ibrahim announced in the Dewan Rakyat today.
He said the initiative, introduced in collaboration with national carmakers, aims to encourage the scrapping of old and uneconomical vehicles that pose safety and environmental risks.
Anwar said the initiative is among several preventive measures aimed at reducing the risk of road accidents following a series of recent fatal crashes.
“The government expressed sorrow over the recent spate of tragic road accidents — from the crash involving Universiti Pendidikan Sultan Idris (UPSI) students, to the Ayer Hitam tourist bus tragedy, the police truck accident in Teluk Intan, and the recent lorry collision at Bukit Kajang toll plaza that claimed the life of an infant.
“Stricter measures will be taken to prevent such incidents from recurring. The Transport Ministry is finalising speed limit regulations for heavy vehicles,” he said when tabling the Budget 2026.
Other initiatives include:
- RM2.5 billion for the maintenance of federal roads, including resurfacing potholes, installing street lights in high-risk areas, and replacing damaged road furniture. Of this, RM700 million is allocated to G1–G4 contractors.
- RM5.6 billion in Malaysian Road Records Information System (MARRIS) grants for states to maintain state roads nationwide.
- RM30 million to empower district engineers to expedite minor road repairs, including responding to public complaints via the MyJalan app.
- The Malaysian Highway Authority will install 3,000 LED lights at high-risk highway locations.
To support enforcement of the new speed limits, the government proposes an Accelerated Capital Allowance for heavy vehicle owners to claim the cost of purchasing speed limiters within one year.
Anwar said Social Security Organisation’s (Socso) health screening programme will also be expanded to include public and commercial transport drivers.
