Lack of automotive disposal facilities won’t block Sarawak owners from matching grant to scrap vehicles, says Hasbi

MIRI (March 2): Owners of vehicles aged 20 years and older in Sarawak will be able to participate in the federal government’s RM10 million Matching Grant Programme despite the lack of required licensed automotive disposal facilities, said Datuk Hasbi Habibollah.

The Ministry of Transport has confirmed that a special interim arrangement has been put in place for applicants from Sarawak and Sabah to ensure they are not disadvantaged in accessing the programme announced under Budget 2026.

“The government is committed to ensuring this programme can be enjoyed inclusively by vehicle owners across the country, including in Sarawak and Sabah. We do not want anyone to be left out simply because of infrastructure gaps,” Hasbi said when contacted.

“Owners in Sarawak or Sabah can head to the Proton or Perodua outlets and they will be advised on the proper procedure of participating in this programme, which includes vehicle deregistration by the Road Transport Department.”

He explained that a special arrangement has been made for Sarawak and Sabah centres which have yet to have an Authorised Automotive Treatment Facility (AATF) — a licensed disposal centre mandatory under the standard programme procedures in Peninsular Malaysia.

The ministry has granted an exemption allowing vehicle deregistration in Sarawak to be processed through Road Transport Department (JPJ) counters or kiosks, rather than fully online via the e-Dereg system.

For the disposal of scrapped vehicles, original equipment manufacturers operating in Sarawak will be permitted to carry out disposal through licensed scrap metal recycling companies, subject to verification and compliance with conditions set by JPJ.

“This is a temporary measure until AATF facilities are established in Sarawak and Sabah. The objective remains the same — to remove old, unsafe vehicles from our roads in a lawful and responsible manner,” Hasbi said.

The AATF mechanism, used in Peninsular Malaysia, ensures scrapped vehicles are disposed of in a controlled manner that prevents the misuse of vehicle registration identities, bars old vehicles from re-entering roads illegally, manages waste materials safely, and supports the circular economy.

The interim framework for Sarawak and Sabah will remain in effect until AATF facilities are operational in both states and the ministry is liaising with the Sarawak government on the way forward, he added.

Under Budget 2026, the federal government is offering a matching grant of up to RM4,000 for scrapping vehicles aged 20 years or older.

The initiative targets approximately 5,000 vehicle owners who will get RM2,000 from the government and up to RM2,000 from participating manufacturers, Proton or Perodua, when purchasing a new, safer, and more fuel-efficient car.