Malaysia considers RM1,000 subsidy for motorcycle trade-ins

The Malaysian Transport Ministry is considering a proposal to expand its vehicle trade-in subsidy scheme to include motorcycles. Under the proposed plan, owners could receive a RM1,000 subsidy when trading in an old motorcycle for a new one.

Transport Minister Anthony Loke noted that the suggestion was brought forward by the Malaysia Motorcycle and Scooter Dealers Association (MMSDA). The ministry is exploring funding options, including the potential use of revenue generated from the sale of special vehicle registration numbers, rather than requesting additional allocations from the Ministry of Finance.

This follows a previous matching grant program for older cars, which offered RM2,000 per eligible vehicle. That program saw high demand, exhausting its RM10 million allocation within approximately three months. If the motorcycle scheme is approved and funding is secured, it could be introduced as early as late 2026 or early 2027.