Malaysia eases scrapping of deregistered vehicles, but hurdles remain

KUALA LUMPUR, 9 OCTOBER 2026 —

The Malaysia Automotive Recyclers Association says owners can now legally scrap or sell for parts vehicles that have not been formally deregistered with the Road Transport Department, but only if they follow a strict process.

Cho Chee Seng, vice-president of the association, told The Star that vehicles left abandoned or in poor condition—even if they appear to have been scrapped—should not be treated as officially disposed of unless their owners complete the deregistration process.

“Owners must ensure their legal responsibility for the vehicle is terminated and prevent misuse of its identity,” Cho said. He noted that an inactive vehicle could still be owned by an individual or company awaiting repairs, dismantling, buyers, or simply left idle.

The deregistration process can be done through JPJ’s e-Dereg system using an Authorised Automotive Treatment Facility (AATF), or manually at any JPJ branch. The vehicle must have no unresolved issues with JPJ, police, or Customs, and no outstanding ownership claims—such as an active hire-purchase loan. All administrative details, including roadtax, must also be settled.

For electronic deregistration, ownership documents are verified before the vehicle is broken up for material recovery, with the AATF issuing a Certificate of Destruction. Manual deregistration requires submitting documents to JPJ before surrendering the vehicle to an AATF.

While Malaysia lacks a national figure for abandoned vehicles, Cho said many old cars remain parked on private property, roadsides, or vacant land for extended periods. The issue is not unique to Malaysia, he added, as lack of awareness, cost, or inconvenience often discourages owners from completing the formal process.

Industry stakeholders are pushing for a more structured end-of-life vehicle ecosystem to simplify disposal, but challenges remain. Hurdles include uncertainty over AATFs, complex documentation requirements, and a lack of financial incentives for owners to dispose of unwanted vehicles.

Currently, there are five licensed AATFs in Malaysia, with the industry collaborating with the Department of Environment and the Malaysia Automotive, Robotics and IoT Institute to improve the system. At an AATF, vehicles undergo depollution—removal of fuel, engine oil, batteries, and refrigerants—before dismantling. Reusable components, such as engines, transmissions, and wheel rims, are recovered, while the remaining structure is processed for material recovery to reduce landfill waste.

Cho said while progress is being made, further simplification is needed to encourage responsible vehicle disposal.

Related: Cho Chee Seng