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

VQA4843

SELANGOR

BSK2639

JOHOR

JYL3095

PULAU PINANG

PRV7870

PERAK

APC5948

PAHANG

CFE1895

KEDAH

KGD926

NEGERI SEMBILAN

NEH6287

KOTA KINABALU

SJN7141

KUCHING

QAB5352M

Last updated 19 Nov, 2025

Fuel Price

Petrol

RON 95

RM 2.65

+0.05

RON 97

RM 3.25

+0.05

RON 100

RM 5.00

VPR

RM 6.23

Diesel

EURO 5 B10

RM 3.07

+0.05

EURO 5 B7

RM 3.27

+0.05

Last updated 13 Nov, 2025

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
2026 Proton Saga Garners Over 10,000 Bookings In Just Five Days!

2026 Proton Saga Garners Over 10,000 Bookings In Just Five Days!

All-new 2026 Proton Saga charts just over 10,000 bookings in just 5 days - one booking placed every 43 seconds!

18-11-2025
Auto News
Lamborghini Among 92 Luxury Cars Seized In KL JPJ Crackdown

Lamborghini Among 92 Luxury Cars Seized In KL JPJ Crackdown

JPJ’s Ops Luxury has targeted high-end offenders since July, issuing over 400 notices and seizing 92 of luxury vehicles.

18-11-2025
Auto News
Lady Driver Cheats Death Following ECRL Construction Beam Collapse in Batu Caves

Lady Driver Cheats Death Following ECRL Construction Beam Collapse in Batu Caves

Lady driver narrowly escaped death as massive steel structure from the ECRL project collapsed onto her car along the MRR2.

Auto News
Penang Police Strengthen Security For Mutiara LRT Project

Penang Police Strengthen Security For Mutiara LRT Project

Penang police are coordinating with agencies to ensure the Mutiara LRT project proceeds safely without compromising public security.

18-11-2025
Auto News
Works Ministry Reviewing ANPR Toll Payments With JustGo App

Works Ministry Reviewing ANPR Toll Payments With JustGo App

Govt is reviewing the ANPR system paired with the JustGo app to streamline toll payments and reduce congestion.

18-11-2025
Auto News
Activate Your X50 RFID and Win Up to RM500 in Toll Credits

Activate Your X50 RFID and Win Up to RM500 in Toll Credits

Activate your Proton X50’s built-in Touch ’n Go RFID and stand a chance to earn up to RM500 in toll rebates.

Auto News
Trans Borneo Railway Feasibility Study To Conclude By Mid-2026

Trans Borneo Railway Feasibility Study To Conclude By Mid-2026

Govt has begun a feasibility study for the Trans Borneo Railway, which could link Sabah, Sarawak, Brunei and Kalimantan.

18-11-2025
Auto News
LRT3 Enters Final Testing Phase, Govt Targets Dec 31 Opening

LRT3 Enters Final Testing Phase, Govt Targets Dec 31 Opening

LRT3 line is now in its final round of safety and reliability tests, with its launch date hinging on Dec results.

18-11-2025

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.

© 2025 CariCarz.com. All Rights Reserved.