Challenges And Opportunities: Implementing An End-Of-Live Vehicles Program In Malaysia

ByMohd Azad Jasmi

In the context of Malaysia, the issue of end-of-life vehicles (ELVs) is an important one to discuss. The proper management of ELVs becomes increasingly important for public safety and environmental sustainability as the number of vehicles on the road continues to rise.

The Malaysian government is currently deliberating the reintroduction of a vehicle end-of-life (ELV) policy, with the goal of implementing it by 2025.

The Environmental Quality (Scheduled Wastes) Regulations of 2005 in Malaysia govern the recycling and disposal of ELVs. The procedures and responsibilities for the collection, treatment, and recycling of ELVs are outlined in these regulations. The objective is to reduce the amount of damage that is done to the environment when vehicles that have outlived their usefulness are taken apart and disposed of.

The presence of hazardous substances within vehicles, such as batteries, engine fluids, and specific components, is one of the primary obstacles in the management of ELVs. To avoid contaminating water and soil, these hazardous materials must be handled and disposed of appropriately.

Finding the solution

Malaysia has yet to formalize its ELV program, but the inclusion of discussions on phasing out old vehicles in a sustainable manner and the recent ELV survey, indicate the government’s commitment to advancing green mobility and exploring options to reduce greenhouse gas emissions from the transportation sector. The public’s input through the survey will play a role in shaping future policies related to sustainable transportation practices in Malaysia.

The Malaysian government aims to establish a comprehensive management framework for the implementation of vehicle end-of-life (ELV) policy by 2025. This development comes after years of discussions and challenges in finding an effective solution to address the complexities surrounding the ELV issue in the country.

Recognizing the importance of an ELV policy, the government is actively studying and exploring viable approaches to introduce an effective management system. By defining the initial steps towards implementing the ELV policy, Malaysia aims to lay the groundwork for a structured and sustainable framework.

The government’s commitment to this initiative indicates a renewed focus on addressing the challenges related to vehicle end-of-life in the country. With the target of establishing the ELV management framework by 2025, Malaysia aims to streamline processes and create a more efficient system for managing and regulating end-of-life vehicles.

As reported by Bernama, the government’s efforts signify a positive step towards finding a practical and workable solution for the ELV issue in Malaysia. The establishment of a management framework is crucial to ensure the proper disposal, recycling, and sustainable management of vehicles reaching their end-of-life stage.

By setting a clear timeline and focusing on defining the necessary policies and strategies, Malaysia aims to create a framework that will promote environmental sustainability, address waste management concerns, and potentially contribute to the growth of the circular economy in the automotive sector.

Overall, the government’s aspirations to define a management framework for the vehicle end-of-life policy by 2025 reflect a determined effort to address the long-standing challenges associated with ELV in Malaysia. This initiative holds the potential to create a more sustainable and regulated approach to managing end-of-life vehicles in the country.

A joint effort between significant partners, including government offices, vehicle makers, and reusing organizations, is critical to lay out a thorough and maintainable ELV the board framework. They can minimize the negative effects on the environment while ensuring the proper recycling and recovery of valuable materials from ELVs by cooperating.

In Malaysia, addressing the issue of old vehicles necessitates a multifaceted strategy that incorporates stakeholder collaboration, public education campaigns, and stringent regulatory enforcement. We can promote a sustainable future for Malaysia’s automotive industry, conserve resources, and protect the environment by giving proper ELV management priority.

To find solutions that are both efficient and long-lasting, the management of used vehicles (ELVs) in Malaysia faces several obstacles. A portion of the key difficulties include:

  1. Dumping and Disposal Illegally: The illegal dumping and disposal of ELVs is a significant obstacle. In rural or public areas, unscrupulous individuals may leave their vehicles, resulting in environmental pollution and unsightly surroundings. Public health and safety are also at risk from illegal scrapping and disposal activities.
  2. Education and awareness gaps: There are a lot of car owners who aren’t aware of how important it is to properly manage ELVs and the dangers that improper disposal could pose to the environment and people’s health. ELVs are handled and disposed of incorrectly as a result of inadequate awareness and education programs. Substances Posing Dangers: Batteries, engine oils, coolant fluids, and electronic components are among the hazardous materials in ELVs. If these substances are not handled and disposed of appropriately, they may be harmful to the environment. To ensure that hazardous materials are recycled or disposed of safely, it is difficult to extract and treat them appropriately.
  3. Facilities and Infrastructure: Effective management may be hindered by inadequate infrastructure and authorized treatment facilities (ATFs) for ELV dismantling, recycling, and disposal. To make it easier to handle ELVs in a way that is better for the environment, ATFs need to be established and made available across the country.
  4. Financial Support and Rewards: The lack of financial support and incentives for recycling and disposing of ELVs can deter vehicle owners and other stakeholders from following proper procedures. Economic incentives, like tax breaks or incentives for recycling, can encourage responsible ELV management.
  5. Partner Coordinated effort: Multiple stakeholders, including the public, vehicle manufacturers, recycling companies, and government agencies, must work together for efficient ELV management. Coordination among these partners is fundamental to laying out an incorporated and productive ELV in the executive’s framework.

Tending to these difficulties requires an extensive methodology including stricter implementation of guidelines, public mindfulness crusades, foundation improvement, monetary impetuses, and partner joint effort. By handling these difficulties, Malaysia can upgrade its ELV the executives rehearses, advance manageability, and alleviate the natural effect of end-of-life vehicles.

The challenges

The Malaysian government has faced several challenges in implementing an effective end-of-life vehicle (ELV) program. Some reasons for this uphill battle include:

  1. Lack of Enforcement: One of the primary challenges is the lack of strict enforcement of regulations related to ELV management. Despite having guidelines and policies in place, the enforcement of these regulations has been inconsistent, leading to non-compliance and improper disposal practices. This lack of enforcement undermines the effectiveness of any ELV program.
  2. Limited Awareness and Education: Many vehicle owners and stakeholders have limited awareness and understanding of the importance of proper ELV management. Insufficient education and outreach programs contribute to a lack of knowledge about the environmental impact of improper disposal and the available options for recycling or proper disposal. Increasing awareness and education is crucial to changing behaviors and promoting responsible ELV management.
  3. Financial Implications: ELV management involves costs associated with the collection, transportation, dismantling, and recycling. The financial implications of establishing proper infrastructure and facilities for ELV management can be a significant challenge for the government. The lack of financial incentives or support for ELV recycling may discourage stakeholders from participating in proper disposal practices.
  4. Fragmented Stakeholder Engagement: Effective ELV management requires collaboration among multiple stakeholders, including government agencies, vehicle manufacturers, recycling companies, and the public. However, coordinating and engaging these diverse stakeholders can be challenging due to differing interests, lack of coordination, and limited communication channels. Building consensus and ensuring active participation from all stakeholders is essential for successful implementation.
  5. Infrastructure Development: Establishing an efficient network of authorized treatment facilities (ATFs) and recycling centers across the country is crucial for proper ELV management. However, the development of such infrastructure requires significant investment and planning. The lack of adequate infrastructure, particularly in rural areas, hampers the accessibility and convenience of responsible ELV disposal options.
  6. Shifting Market Dynamics: The automotive industry is evolving rapidly, with technological advancements and changing consumer preferences. Keeping up with the market dynamics and adapting ELV programs to accommodate new vehicle technologies and materials can be a challenge. Updating regulations and strategies to align with industry developments is necessary for a comprehensive and future-proof ELV program.

Overcoming these challenges requires a multi-faceted approach, including strengthening enforcement mechanisms, raising awareness among the public and stakeholders, providing financial incentives, fostering stakeholder collaboration, and investing in infrastructure development. By addressing these issues, the Malaysian government can enhance its ELV program and promote sustainable practices in the automotive sector.

How other countries are doing it

In countries like Japan and Germany, payment or incentives to sellers of end-of-life vehicles (ELVs) are provided to encourage proper disposal and promote sustainable practices. These payment or incentive schemes vary based on the specific regulations and programs implemented in each country. Here are a few examples:


  1. Recycling Fee: In Japan, vehicle owners are required to pay a recycling fee at the time of purchasing a new vehicle. This fee is used to support the environmentally-friendly disposal and recycling of ELVs.
  2. Deregistration Incentives: Some local governments in Japan offer incentives, such as tax reductions or exemptions, for vehicle owners who properly deregister their vehicles and dispose of them through authorized recycling facilities.


  1. Vehicle Take-Back Obligations: In Germany, vehicle manufacturers are legally obligated to take back ELVs free of charge. This obligation ensures that owners can return their vehicles to manufacturers or authorized collection points for proper disposal.
  1. Scrap Value Payment: Vehicle owners may receive a scrap value payment when they surrender their ELVs for recycling. The amount of payment depends on factors such as the weight of the vehicle, its components, and the current market prices for scrap materials.

It’s important to note that the specific payment or incentive schemes can vary across regions within a country and may be subject to changes in regulations over time. These examples highlight the general approaches taken in Japan and Germany to incentivize proper disposal of ELVs and support the recycling process. The payment or incentive structure in any country is typically designed to offset some of the costs associated with responsibly managing ELVs and to encourage participation from vehicle owners.

Establishing the policies

Here are some policy suggestions that the Government of Malaysia could consider for the implementation and adoption of an end-of-life vehicle (ELV) program:

  1. Mandatory Recycling and Disposal: Enact legislation that makes it mandatory for vehicle owners to properly recycle and dispose of their ELVs through authorized recycling facilities. This policy would ensure that ELVs are not abandoned or illegally dumped, promoting environmental sustainability.
  2. Extended Producer Responsibility (EPR): Implement an EPR framework that holds vehicle manufacturers responsible for the proper management of ELVs. Manufacturers should be required to establish collection networks, take back ELVs, and ensure their environmentally-friendly dismantling and recycling.
  3. Financial Incentives: Introduce financial incentives for vehicle owners to encourage them to participate in the ELV program. This could include scrap value payments or tax incentives for properly disposing of their ELVs through authorized facilities.
  4. Collaborative Partnerships: Foster collaboration between the government, automotive industry, recycling industry, and other stakeholders to develop a comprehensive and efficient ELV management system. This partnership can help establish collection networks, recycling infrastructure, and ensure the proper flow of ELVs from end-users to recyclers.
  5. Public Awareness and Education: Launch public awareness campaigns to educate vehicle owners about the importance of proper ELV disposal and the environmental benefits of recycling. Promote the availability and convenience of authorized recycling facilities to encourage participation.
  6. Monitoring and Enforcement: Implement a robust monitoring and enforcement mechanism to ensure compliance with ELV regulations. This can involve regular inspections of recycling facilities, tracking of ELV documentation, and penalties for non-compliance.
  7. Research and Development: Invest in research and development to explore innovative and sustainable methods for ELV recycling and material recovery. This could include exploring advanced technologies for dismantling, processing, and recycling ELV components and materials.


By adopting these policies, the Government of Malaysia can establish a comprehensive ELV program that promotes environmental sustainability, facilitates responsible vehicle disposal, and supports the growth of the local recycling industry.

To Consumers

  1. Financial Incentives: ELV programs often provide financial incentives to consumers who retire their old vehicles, such as cash incentives, trade-in bonuses, or tax credits, making it more affordable to purchase a new vehicle.
  2. Safety: ELV programs encourage the retirement of older vehicles, which may lack modern safety features. This promotes road safety and reduces the risk of accidents.
  3. Environmental Responsibility: ELV programs ensure proper disposal and recycling of vehicles, minimizing the environmental impact associated with vehicle waste and hazardous materials.
  4. Access to Affordable Parts: ELV programs promote the reuse of vehicle parts, providing consumers with affordable options for repairs and maintenance.
  5. Improved Vehicle Efficiency: By retiring older vehicles, consumers have the opportunity to replace them with newer, more fuel-efficient models, saving money on fuel costs.

To Car Manufacturers

  1. Market Demand: ELV programs create demand for new vehicles as consumers retire their old ones, stimulating sales for car manufacturers.
  2. Environmental Compliance: ELV programs ensure that car manufacturers meet environmental regulations and recycling targets by properly managing end-of-life vehicles.
  3. Resource Efficiency: ELV programs encourage the recycling and reuse of materials from retired vehicles, reducing the need for raw materials and promoting a more sustainable manufacturing process.
  4. Brand Reputation: Car manufacturers that actively participate in ELV programs demonstrate their commitment to environmental responsibility, enhancing their brand reputation and customer loyalty.

To the Government

  1. Environmental Conservation: ELV programs contribute to the government’s efforts to reduce pollution, conserve resources, and promote sustainable waste management practices.
  2. Economic Stimulus: ELV programs create jobs in the dismantling, recycling, and automotive sectors, contributing to economic growth and employment opportunities.
  3. Regulatory Compliance: Implementing ELV programs helps governments meet environmental regulations and targets related to vehicle disposal and recycling.
  4. Public Health and Safety: Retiring old and unsafe vehicles through ELV programs enhances road safety and reduces health risks associated with vehicle emissions and hazardous materials.

By recognizing these benefits, consumers, car manufacturers, and governments can work together to implement effective ELV programs that promote sustainability, resource efficiency, and a cleaner automotive industry.


The implementation of an effective end-of-life vehicle (ELV) program holds significant benefits for consumers, car manufacturers, and the government. As consumers, we can enjoy financial incentives, improved safety, and environmental responsibility by participating in these programs. Car manufacturers can tap into market demand, comply with regulations, and enhance their brand reputation. The government, in turn, can achieve environmental conservation, stimulate the economy, and ensure regulatory compliance.

It is my sincere hope that the government, through its relevant agencies, will take the necessary steps to initiate policy adjustments and engage with stakeholders, consumers, financial institutions, and car manufacturers to drive the successful implementation of ELV programs. By working together, we can create a sustainable future, where end-of-life vehicles are managed responsibly, resources are conserved, and the automotive industry thrives in an environmentally friendly manner. Let us envision a greener and more prosperous Malaysia, where the lifecycle of vehicles is carefully considered, and the benefits of ELV programs are realized by all.

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