Budget 2026: Govt Confirms Introduction of Lemon Law in Malaysia

Prime Minister Datuk Seri Anwar Ibrahim has confirmed that the government will move ahead with introducing “Lemon Law” provisions in Malaysia. Announced during the tabling of Budget 2026, he said the Consumer Protection Act will be amended to include elements of Lemon Law, following the enactment of the Consumer Credit Act.
This marks an important step forward for consumer rights, especially for Malaysians who have long struggled with defective or faulty new cars. The move is part of the MADANI government’s commitment to strengthening consumer protection and ensuring fair treatment for buyers who often find themselves at a disadvantage when faced with unreliable products.
The announcement builds on earlier efforts by the Domestic Trade and Cost of Living Ministry (KPDN), which has been working on a proposal to introduce Lemon Law into Malaysia’s legal framework.
-full_normal.jpg)
The ministry has also been gathering feedback from key agencies including the Finance, Transport, and Economy Ministries, the Attorney-General’s Chambers, and the Ministry of Investment, Trade and Industry.
The proposal follows a detailed six-month study carried out from June to Nov last year, which reviewed how Lemon Laws operate in other countries. The study found that Malaysia’s existing laws do not provide enough protection for buyers who end up with defective vehicles, especially in cases where repairs fail to fix the problem or where manufacturers and dealers refuse responsibility.

Currently, consumer recourse depends on a mix of existing laws, including the Consumer Protection Act, the Contracts Act, the Sale of Goods Act, and the Hire-Purchase Act 1967. However, these are often fragmented and unclear, making it difficult for affected consumers to seek fair compensation.
With the Prime Minister’s latest announcement, the long-awaited Lemon Law finally appears to be on its way to becoming reality. Once enacted, it will offer Malaysian consumers clearer, stronger, and more enforceable rights, especially in the purchase of new cars and mark a major milestone in the country’s consumer protection landscape.
Written By
Kumeran Sagathevan
More then half his life spend being obsessed with all thing go-fast, performance and automotive only to find out he's actually Captain Slow behind the wheels...oh well!
JPJ Running Numbers
KUALA LUMPUR
VRF9466
SELANGOR
BSR5731
JOHOR
JA2159J
PULAU PINANG
PSD7430
PERAK
APJ7985
PAHANG
CFH1518
KEDAH
KGH602
NEGERI SEMBILAN
NEK9063
KOTA KINABALU
SJT670
KUCHING
QAB1917P
Last updated 14 Jul, 2026
Fuel Price
Petrol
RON 95
RM 3.97
+1.38
RON 97
RM 4.90
+1.75
RON 100
RM 7.20
+2.20
VPR
RM 8.23
+2.00
Diesel
EURO 5 B10
RM 5.12
+2.08
EURO 5 B7
RM 5.32
+2.08
Last updated 30 Apr, 2026
Related News
No Need To Rush Lemon Law - Experts
Current laws are enough to safeguard consumers, so there is no need to rush the lemon law, expert says.
29-10-2024
Govt Rolls Out 2 Interim Plans Before Lemon Law Finalised
KPDN announced two interim strategies to safeguard consumers prior to the finalization of a new legal framework for lemon law.
16-10-2024
KPDN: New LEMON LAW Legislation Ready By September 2024
KPDN has announced the formation of Lemon Law legislation to improve or enact new law, set to be ready by September 2024.
05-06-2024
Government Considering ‘Lemon Law’ For Old, New Vehicles
The government is currently reviewing and investigating the possibility of passing a "lemon law” for old and new vehicles.
18-01-2024
Sept 2025 Vehicle Sales Down 20%, But EVs Edge Up 2%
Malaysia’s car market softened in Sept with overall sales down 20%, but EVs rose 2% month-on-month.
11-10-2025
Budget 2026: Two-Day 50% Toll Discount For Deepavali
Highway users will enjoy a two-day half-price toll discount during Deepavali.
10-10-2025
Budget 2026: Tax-Free Cars from Langkawi & Labuan Will Be Limited to RM300K
Tax-free cars from Langkawi and Labuan will only be limited to RM300,000 in value from Jan 1, 2026, onwards.
10-10-2025
Jaecoo Replaces Faulty C9 - Silent Lemon Law at Work?
A Jaecoo Omoda C9 broke down just days after delivery. What followed felt like Malaysia’s first unofficial lemon law in action.
08-04-2025
Latest News
7 Countries With Pricier Petrol Than Malaysia (Even Oil-Rich Ones!)
Why is Malaysia's RON95 petrol price locked at RM1.99 while global rates soar? See the global price comparison and how the BUDI MADANI subsidy protects your wallet.
14-07-2026
Market Report: Malaysia's Auto Sector Is Defying All Expectations
Malaysia’s auto sector is defying expectations in 2026! Discover why vehicle registrations are nearing record highs based on JPJ data, how EV sales surged 85%, and what the new policy changes mean for you.
14-07-2026
Zeekr Is Taking Over: Malaysia’s No. 1 Premium EV Brand Is Opening 7 More Outlets Soon
Zeekr Malaysia is expanding! With 11 outlets now open and 18 planned by end-2026, the No. 1 premium EV brand is making it easier than ever to own a Zeekr.
14-07-2026
Sri Petaling’s New BYD Outlet Is A Game Changer—And It’s Getting A 'Stadium' Makeover Soon
Explore the new BYD Sri Petaling showroom—a game-changing EV hub in KL. Get the scoop on the upcoming 'stadium' delivery experience and win a RM39,900 motorcycle!
13-07-2026
RXZ Tragedy At Jabor: A Fatal Wake-Up Call For Malaysia's Convoy Culture
The fatal RXZ convoy crash near Jabor has left many in shock. We look at the details behind the accident and the growing concerns over convoy road safety.
12-07-2026
No Helmet, No Exceptions: JPJ Confirms Summonses For Viral Campaign Convoy Riders
JPJ confirms summonses for helmetless riders in viral campaign convoys. Minister Anthony Loke emphasizes that safety laws apply to everyone, regardless
10-07-2026
No License, No Insurance, And Ketum: The Reality Behind JPJ’s Roadblock Crackdown
Over 91,000 vehicles inspected. More than 42,000 notices issued. These aren't just figures on a report, they represent a massive, ongoing shift in how authorities are policing our roads.
10-07-2026
Hybrid, Petrol, Or EV? Toyota’s Latest Sales Figures Prove Malaysians Love Having Options
UMW Toyota reports 36,200 units sold in 1H 2026. Discover how Toyota's "Multi-Pathway" strategy—from petrol and hybrids to EVs—is winning over Malaysian drivers.
10-07-2026
Show More
trending_flat
