Malaysia Vehicle Replacement Scheme Gets Proton Trade-In Boost

On January 29, 2026, the Malaysian government announced the rollout of the Malaysia vehicle replacement scheme, a matching grant initiative designed to remove cars aged 20 years and older from the road while accelerating the transition to newer, safer, and more environmentally friendly vehicles. The policy aligns with national goals to modernize the vehicle fleet and reduce emissions without disrupting consumer affordability.

Malaysia vehicle replacement scheme framework and incentives

Under the scheme, owners of aging vehicles are encouraged to replace them with newer models through a combination of manufacturer-led incentives and government support. The government contribution is capped at MYR 2,000 per eligible vehicle, forming a matching structure intended to stimulate participation while sharing costs between public and private stakeholders.
Key objectives of the scheme include:

• Phasing out high-emission vehicles over 20 years old

• Improving road safety through newer vehicle adoption

• Supporting gradual electrification and cleaner powertrains

Proton trade-in support under the Xchange Programme

In line with the Malaysia vehicle replacement scheme, Proton has expanded trade-in support for qualifying older vehicles across its entire model portfolio. Incentives are enhanced through the government’s matching grant, allowing buyers of the Proton Saga and Proton e.MAS 5 to access combined benefits of up to MYR 2,000, while customers purchasing other Proton models can receive incentives reaching MYR 4,000.
This initiative builds on Proton’s Xchange Programme first introduced in May 2025, reinforcing the automaker’s role in supporting national automotive transition policies. By integrating government backing with existing trade-in mechanisms, Proton aims to lower replacement barriers and accelerate the uptake of modern, efficient vehicles across Malaysia’s passenger car market.