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
VQN843
SELANGOR
BSM7096
JOHOR
JYS341
PULAU PINANG
PRY9718
PERAK
APF4734
PAHANG
CFF4641
KEDAH
KGE4827
NEGERI SEMBILAN
NEJ5980
KOTA KINABALU
SJQ4346
KUCHING
QAB3073N
Last updated 27 Feb, 2026
Fuel Price
Petrol
RON 95
RM 2.59
+0.05
RON 97
RM 3.15
+0.05
RON 100
RM 5.00
VPR
RM 6.23
Diesel
EURO 5 B10
RM 3.04
+0.05
EURO 5 B7
RM 3.24
+0.05
Last updated 26 Feb, 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
Updated Fuel Prices From 26 February To 4 March
The Ministry of Finance (MoF) has announced the retail prices of all fuels in Malaysia, for the coming week of 26 February to 4 March, 2026, the rates are as such.
25-02-2026
APAD to Investigate Kelana Jaya LRT Breakdowns, Prasarana Ordered to Explain
Transport Minister has directed APAD to probe recent Kelana Jaya LRT disruptions and warned action may be taken against Prasarana.
25-02-2026
Chery TIGGO CROSS HEV Grand Prize Winner Announced
Joan Gan became the grand prize winner of a Chery TIGGO CROSS HEV, chosen from over 1,300 participants in Chery Malaysia’s year-end PHEV lucky draw.
24-02-2026
LRT3 Set for June 2026 Launch, Contractor Faces RM2.73 Million Daily Penalty for Delays
The Shah Alam LRT3 line is targeted to begin operations by June 2026, with contractors liable for RM2.73 million per day in delay penalties.
24-02-2026
Johor–Singapore RTS Link Fare Expected at RM15 to RM22 Per Trip
Transport Minister Anthony Loke says the RTS Link could cost between RM15 and RM22 per journey, with fares to be announced in 2H2026.
23-02-2026
Public Review Opens for Revised Penang Mutiara LRT with Cross-Sea Link at Core
MRT Corp opens a three-month public review for the Penang Mutiara LRT, featuring a proposed six-kilometre cross-sea link to Penang Sentral.
23-02-2026
Ops Luxury: JPJ Seizes Sambung Bayar Camry, Owner in Legal Trouble
A Toyota Camry Hybrid was recently confiscated by JPJ in Kedah for being part of a sambung bayar scheme with no valid road tax or insurance.
20-02-2026
Fix Public Transport Reliability Before Limiting Car Ownership - Experts
Experts say improving speed, reliability and first-mile connectivity must come before any move to limit car ownership or introduce congestion charges.
19-02-2026
Show More
trending_flat