Penang will roll out its strata scheme for end-of-life vehicles (ELVs) across the state, following the success of a pilot project on Penang Island that collected 30 abandoned vehicles in its first eight months.
Local government, town and country planning committee chairman H’ng Mooi Lye said the Seberang Perai City Council (MBSP) was studying how to replicate the initiative on the mainland.
“The state government will appoint an authorised automotive treatment facility licensed by the environment department through an open tender, which we expect to finalise by October,” he told Bernama on 3 July.
Once the tender closes, the state aims to collect between 20 and 30 ELVs per month. Priority targets include strata residential areas with vehicle accumulation problems and vehicles removed by local authorities after public complaints.
Since the Penang Island City Council (MBPP) launched the pilot in September 2025, 30 ELVs comprising 28 cars, one motorcycle and one van have been voluntarily surrendered for disposal. The state government did not track total compensation paid to owners because payments were made directly by the treatment facility, with amounts set by each vehicle’s type and condition.
H’ng said feedback from residents, joint management bodies and management corporations had been “overwhelmingly positive,” with growing interest from parties seeking information about the scheme.
However, several challenges remain. Malaysia still has no national ELV policy requiring the disposal of ageing vehicles after a set period. Owners’ sentimental attachment to old cars and expectations of higher compensation have also slowed uptake.
The ELV scheme was launched by Transport Minister Loke Siew Fook on 20 September 2025, making Penang the first state in Malaysia to introduce such an initiative. It is a collaboration among the Transport Ministry, the Penang government, MBPP and private sector partners.
The ministry also rolled out its e-Deregistration system, which lets vehicle owners cancel their registrations electronically, streamlining the disposal process.
Source: Bernama
