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.
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
VPU7362
SELANGOR
BSJ3845
JOHOR
JYH9384
PULAU PINANG
PRU6510
PERAK
APB6490
PAHANG
CFD6983
KEDAH
KGC5463
NEGERI SEMBILAN
NEH3314
KOTA KINABALU
SJN270
KUCHING
QAB3219M
Last updated 10 Oct, 2025
Fuel Price
Petrol
RON 95
RM 2.60
RON 97
RM 3.18
-0.03
RON 100
RM 5.00
VPR
RM 6.23
Diesel
EURO 5 B10
RM 2.93
EURO 5 B7
RM 3.13
Last updated 09 Oct, 2025
Related News
Lemon Law: Interim Measures Already Underway
KPDN reportedly finalising plans to introduce Lemon Law provisions to protect car buyers.
21-05-2025
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
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
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
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
Study On Lemon Law's Effectiveness Will Consider Loopholes In Act 599
Government's feasibility study on lemon law will take into account a number of Act 599 loopholes to be fixed.
19-03-2024
KPDN Will Examine Feasibility Of "Lemon Law" Implementation This Year
Feasibility study is being conducted by KPDN on the viability of implementing the “Lemon Law” this year.
11-03-2024
Latest News
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: Over RM48b Set Aside For Sabah, Sarawak Highways
PM Anwar announces major allocation for road and highway projects in Sabah and Sarawak, including the Pan Borneo Highway.
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
Budget 2026: Govt Confirms Introduction of Lemon Law in Malaysia
Budget 2026: Malaysia to Introduce Lemon Law to Strengthen Consumer Protection for Car Buyers
10-10-2025
Over 10 Million Malaysians Benefit From BUDI95 Targeted Fuel Subsidy
MOF says more than 10 million Malaysians have redeemed subsidised RON95 petrol under the BUDI95 scheme.
10-10-2025
2025 Proton X50 Charts Over 5,000 Deliveries in 40 Days
With over 5,000 deliveries made in just 40 days, the all-new 2025 Proton X50 retains its crown as the king of compact SUVs.
10-10-2025
Ops Lancar Activated For Deepavali Traffic Surge
Over 2.1 million vehicles are expected on the road as police launch Ops Lancar from Oct 17–21 to ensure smooth travel.
10-10-2025
JPJ: No Interference in JPJeBid, Number Resale Are Private Deals
JPJ insists its online plate-bidding system is clean, scalpers and resellers act outside JPJ’s jurisdiction.
10-10-2025
Show More
trending_flat