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.


Tagged:

Budget 2026 Lemon Law
Lemon Law
Budget 2026
Lemon Law Malaysia
Share This Article

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!

Share via

Related News

Auto News

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

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

Auto News

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

14-11-2024
Auto 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
Auto News

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

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 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

Buying A Car Soon? 5 Big Changes That Took Effect On 1 June That You Need To Know

Buying a car in Malaysia? The Hire-Purchase Amendment Act 2026 took effect on 1 June. Here are 5 new rules on EIR and car loan interest you must know.

03-06-2026
Auto News

No Extra Cost, But Check Your Filter? 4 Essential Things Every Diesel Driver Needs To Know About The B15 Rollout

Malaysia officially rolled out the B15 biodiesel blend on June 1. Find out if your Hilux, Ranger, Triton, or Mazda diesel engine is compatible based on latest manufacturer statements.

03-06-2026
Auto News

APAD Demands Answers: Prasarana Ordered To Submit Urgent Report Following Scary LRT Derailment In KL

APAD launches an immediate independent investigation into Prasarana following the Ampang Line LRT train derailment near Chan Sow Lin station due to a faulty track switch.

29-05-2026
Auto News

Up to RM200,000 Off?! Sime Motors MotorExpo 2026 Is Bringing the Biggest Car Rebates of the Year to KL

Secure the biggest car discounts of the year at Sime Motors MotorExpo 2026 from June 5-7 at XOX Arena KL, featuring rebates up to RM200,000 across 10 elite brands.

29-05-2026
Auto News

Proton Delivered Real Engines To These 6 Malaysian TVET Hubs And Universities

Proton delivers advanced factory production engine units to 6 Malaysian TVET hubs and universities, including UTHM, UMPSA, and ILP Marang, with plans for future EV parts.

28-05-2026
Auto News

Infographic Reveals Which ASEAN Country Has The Cheapest Fuel (Spoiler: Malaysia Is In The Top 2!)

An official Information Department infographic reveals Malaysia has the second cheapest RON 95 petrol in ASEAN at RM1.99/L via Budi Madani, trailing only Brunei.

28-05-2026
Auto News

"If You Build A Service Center, We Pay For It" — Volt Auto’s Massive Cash Injection To Upgrade Dongfeng Malaysia

Volt Auto CEO Soh Ming announces 100% funding for local Dongfeng service centers in Malaysia, enforcing strict 70% after-sales showroom requirements alongside 2026 CKD assembly plans.

28-05-2026
Auto News

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