ENZHMS
Link Copiedcheck_circle
Auto News

Budget 2026: Govt Confirms Introduction of Lemon Law in Malaysia

Kumeran Sagathevan

Share via

WhatsApp-Image-2025-10-10-at-17.25.12_43e7a52e.jpg


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


KPDN-LEmon-Law-(5).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.


prev-desktop_vocal-consumer-association-urges-the-introduction-of-the-lemon-law-in-malaysia-65290_cover_2019_service-centre-left-hand-right-hand-tool-cover-full_normal.jpg


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.


Share This Article

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!

Share via

JPJ Running Numbers

KUALA LUMPUR

VRA1655

SELANGOR

BSQ3512

JOHOR

JYX2763

PULAU PINANG

PSC4903

PERAK

APH6581

PAHANG

CFG5949

KEDAH

KGG2081

NEGERI SEMBILAN

NEK4832

KOTA KINABALU

SJR9999*

KUCHING

QAB8364N

Last updated 26 May, 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

Auto News
Budget 2026: Analysts Split on Lemon Law and EV Tax Shifts

Budget 2026: Analysts Split on Lemon Law and EV Tax Shifts

RHB views Lemon Law as a long-term positive; Kenanga bets on short-term gains from EV tax shifts.

Auto News
Budget 2026: MAA Cautions Against Early End to EV Tax Breaks

Budget 2026: MAA Cautions Against Early End to EV Tax Breaks

MAA: Malaysia’s EV policy must stay flexible and evolve with global trends to stay competitive.

Auto News
Lemon Law: Interim Measures Already Underway

Lemon Law: Interim Measures Already Underway

KPDN reportedly finalising plans to introduce Lemon Law provisions to protect car buyers.

Auto News
KPDN To Conclude Study On Lemon Law This Month

KPDN To Conclude Study On Lemon Law This Month

KPDN will conclude its study on lemon law implementation in Malaysia this month.

14-11-2024
Auto News
No Need To Rush Lemon Law - Experts

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
Auto News
Govt Rolls Out 2 Interim Plans Before Lemon Law Finalised

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
Auto News
Lemon Law: Ombudsman Scheme For Auto Industry Included In Study, Says Armizan

Lemon Law: Ombudsman Scheme For Auto Industry Included In Study, Says Armizan

An ombudsman scheme for the auto industry is included in Lemon Law study says Armizan in parliament.

10-07-2024
Auto News
KPDN: New LEMON LAW Legislation Ready By September 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.

Latest News

Auto News
3,500+ Proton Drivers Choose ChargeSini for Home Installation, Here’s Why

3,500+ Proton Drivers Choose ChargeSini for Home Installation, Here’s Why

Buying a Proton e.MAS? Discover why 3,500+ drivers choose ChargeSini for home EV charger installation. Get a 10% public promo!

26-05-2026
Auto News
Genting "Toll" Starts May 28, But Here Is Why Malaysian Bikers Are Celebrating The New Rules

Genting "Toll" Starts May 28, But Here Is Why Malaysian Bikers Are Celebrating The New Rules

Lingkaran Cekap Sdn Bhd introduces a new RM5 road charge for cars entering Jalan Genting Highlands starting May 28, 2026, while motorcycles receive full exemption.

26-05-2026
Auto News
JPJ Terengganu Calls Out Young Riders Over Alarming Rise In Riding Unlicensed & Helmetless

JPJ Terengganu Calls Out Young Riders Over Alarming Rise In Riding Unlicensed & Helmetless

Terengganu JPJ Director Mohd Zamri Samion calls out the casual attitude (sikap sambil lewa) of young motorcyclists riding unlicensed and helmetless.

26-05-2026
Auto News
Anthony Loke Forces Vulnerable JPJ Systems Back Online Despite Active Fraud Exposure

Anthony Loke Forces Vulnerable JPJ Systems Back Online Despite Active Fraud Exposure

Transport Minister Anthony Loke instructs JPJ to postpone its online vehicle transfer system upgrade to the long weekend, keeping the system active despite major fraud warnings.

25-05-2026
Auto News
The End of Crazy Price Drops: A Market Analyst Says EV Pricing Is Finally Becoming "Rational" In Malaysia

The End of Crazy Price Drops: A Market Analyst Says EV Pricing Is Finally Becoming "Rational" In Malaysia

A CIMB Securities automotive analyst reveals why MITI’s new July 1 CBU EV policy will end aggressive price wars and push imported EV showroom prices past RM300k.

25-05-2026
Auto News
10 BIG Reasons To Visit KLIMS 2026 Even If You’re Not A Car Enthusiast

10 BIG Reasons To Visit KLIMS 2026 Even If You’re Not A Car Enthusiast

Discover 10 massive reasons to visit KLIMS 2026 at MITEC from June 12–21, featuring free weekday entry, live RIUH concerts, a Pokémon truck, simulators, and smart transit options.

21-05-2026
Auto News
Game Over, Tonto! JPJ Teams Up With MACC To Hunt Down Secret Lorry Informant Syndicates

Game Over, Tonto! JPJ Teams Up With MACC To Hunt Down Secret Lorry Informant Syndicates

JPJ partners with the MACC to dismantle a secret "tonto" sticker syndicate helping heavy commercial lorries evade law enforcement checkpoints.

21-05-2026
Auto News
254,000 Cars Sold So Far In 2026! A Look At Which Malaysian States Are Freezing In Traffic

254,000 Cars Sold So Far In 2026! A Look At Which Malaysian States Are Freezing In Traffic

Over 254,000 new cars have hit Malaysian roads in the first 4 months of 2026. Discover how MAA’s April sales surged 17% as vehicle production ramped up post-Raya.

20-05-2026

Show More

trending_flat
Carz Automedia Malaysia Logo
About Us

CarzAutoMedia: Stay connected to the latest car news! Get instant updates on new releases, industry trends, and automotive innovations. Your go-to source for 24/7 coverage of everything automotive.

© 2026 CariCarz.com. All Rights Reserved.