Penang To Extend End-of-life Vehicle Scheme Statewide

GEORGE TOWN, July 3 (Bernama) -- Penang will expand its Strata Scheme for End-of-Life Vehicles (ELV) statewide following the success of a pilot project launched by the Penang Island City Council (MBPP) in September last year, which effectively addressed the accumulation of abandoned vehicles in strata residential areas.

State Local Government and Town and Country Planning Committee chairman H'ng Mooi Lye said the Seberang Perai City Council (MBSP) has begun studying the implementation of a similar initiative in Seberang Perai, adopting an approach similar to that used on Penang Island.

To strengthen the programme, he said the state government will appoint an Authorised Automotive Treatment Facility (AATF) licensed by the Department of Environment (DOE) through an open tender process, which is expected to be finalised by October.

"Once the appointment is finalised, the state government aims to collect between 20 and 30 ELVs each month, particularly from strata residential areas facing vehicle accumulation issues, as well as vehicles removed by local authorities following complaints in public areas," he told Bernama.

H'ng said that since the scheme was introduced, 30 ELVs, comprising 28 cars, one motorcycle and one van, have been voluntarily surrendered for disposal.

He said the state government did not record the total compensation paid to owners, as payments were made directly by the AATF company, with the amount determined based on the vehicle's type and condition.

Commenting on the programme's effectiveness, H'ng said the encouraging response reflected the need for a more systematic mechanism to dispose of old and derelict vehicles.

"The initiative has also helped reduce the accumulation of abandoned vehicles, which often affects parking availability, cleanliness and the overall image of residential neighbourhoods," he said.

He added that feedback from residents, Joint Management Bodies (JMBs) and Management Corporations (MCs) has been overwhelmingly positive, with increasing interest from various parties seeking more information on the scheme.

However, H'ng said the programme still faces several challenges, including the absence of a national ELV policy requiring the disposal of ageing vehicles after a specified period.

He said other obstacles include owners' sentimental attachment to their vehicles, expectations of higher compensation and logistical issues.

Elaborating further, H'ng said logistics and industry participation remain significant challenges, as the AATF involved in the programme is based in Selangor, with no similar licensed facilities operating in the northern region of Peninsular Malaysia.

"This has complicated efforts to sustain the programme over the long term," he said.

To address these issues, H'ng said the state government intends to submit a proposal to the relevant ministry to streamline the disposal process for ELVs, particularly those abandoned in public areas or owned by individuals who cannot be traced or have passed away.

He added that a formal partnership with the newly appointed AATF company is also expected to simplify the disposal process and offer more competitive compensation, encouraging greater voluntary participation.

The End-of-Life Vehicle Scheme was launched by Transport Minister Anthony Loke on Sept 20, 2025, making Penang the first state in Malaysia to introduce such an initiative to tackle abandoned vehicles in strata residential areas.

The programme is implemented through a collaboration between the Ministry of Transport, the Penang state government, MBPP and private sector partners.

To facilitate the initiative, the ministry also introduced the "e-Deregistration" (e-Dereg) system, a digital platform that enables vehicle owners to cancel their vehicle registrations electronically, making the disposal process more efficient.

-- BERNAMA

Penang To Extend End-of-life Vehicle Scheme Statewide

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