Gov’t should relook at Cash for Clunkers scheme to help dispose old cars, says PJ MP Lee Chean Chung

Remember the Cash for Clunkers scrappage scheme programme that was proposed as part of the Vehicle End of Life policy, which never got off the ground? Well, a member of parliament has suggested that the government revisit the topic to see if it can be implemented.

In a post on his Facebook page, Petaling Jaya MP Lee Chean Chung suggested that the programme, in which vehicles beyond a certain age can be scrapped in exchange for cash rebates, should be looked at again, as it would help tackle the issue of disposing of old cars that were no longer in use or roadworthy.

“I suggest that the government seriously study this proposal and consult with relevant industry players. In addition to solving the problem of abandoned vehicles and stimulating the automotive industry, it will also ensure that the average age of vehicles is at a safe-use stage while implementing the goal of carbon reduction and environmental protection,” he wrote in his post.

The CFC topic has been around for a good while, although it started out in different fashion. Initially brought up in 2009 as a Vehicle End of Life policy, the plan required owners of vehicles aged 15 years or older to bring them for mandatory annual inspections as a requirement for road tax renewal, with Failure to pass the inspection requiring the vehicle to be repaired until it was certifiable.

The policy was scheduled to be implemented in 2014, but fell through due to unfavourable response from the public, with then minister of international trade and industry Datuk Seri Mustapa Mohamed saying at the time that “the public is not ready” for such a move.

In 2015, the Malaysia Automotive Institute (later MARii) suggested the policy be changed to follow a Cash for Clunkers scrappage scheme. Under the scheme, owners of vehicles aged 10 years and above could obtain a rebate of up to RM5,000 when they traded in their vehicle (regardless of brand) for a new one from any local OEM producer.

While that also never materialised, talk of the programme never went away, resurfacing in 2018 when transport minister Anthony Loke, who was also transport minister at that time, remarked that the government was looking at the matter. That didn’t progress very far, as the plan was called off following concerns raised by the public over the benefits of such a programme.

Given the response to it on both occasions, restarting the Cash for Clunkers programee to reduce the number of old vehicles on the road looks to be a very long shot, despite Lee’s call to revisit the policy. Do you think an End of Life policy, or for that matter, a CFC scheme, could ever take off here? Share your thoughts with us in the comments section.

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