Penang govt to expand end-of-life vehicle scheme statewide

PETALING JAYA: The Penang government will expand its strata scheme for end-of-life vehicles (ELVs) statewide following the success of a pilot project launched by the Penang Island City Council (MBPP) last September to address the accumulation of abandoned vehicles.

Local government, town and country planning committee chairman H’ng Mooi Lye said the Seberang Perai City Council was studying the implementation of a similar initiative.

H’ng said the state government would appoint an authorised automotive treatment facility licensed by the environment department through an open tender, expected to be finalised by October.

“Once the appointment is finalised, the state government aims to collect between 20 and 30 ELVs a month, particularly from strata residential areas facing vehicle accumulation issues, as well as vehicles removed by local authorities following complaints in public areas,” Bernama reported him as saying today.

He said that since the scheme was introduced, 30 ELVs comprising 28 cars, one motorcycle and one van had been voluntarily surrendered for disposal.

The state government did not record the total compensation paid to owners because payments were made directly by the authorised automotive treatment facility, with the amount determined by each vehicle’s type and condition.

H’ng said feedback from residents, joint management bodies and management corporations had been overwhelmingly positive, with increasing interest from various parties seeking more information on the scheme.

However, he said, the programme still faced several challenges, including the absence of a national ELV policy requiring the disposal of ageing vehicles after a specified period.

Other obstacles included owners’ sentimental attachment to their vehicles and expectations of higher compensation.

The ELV scheme was launched by transport minister Loke Siew Fook on Sept 20, 2025, making Penang the first state in Malaysia to introduce such an initiative.

The programme is being implemented through a collaboration among the transport ministry, the Penang government, MBPP and private sector partners.

The ministry also introduced its e-Deregistration system to enable vehicle owners to cancel their vehicle registrations electronically, making the disposal process more efficient.