Lemon Law To Protect Buyers Rm4 000 Trade In Grant For Old Cars

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BUDGET 2026 | The government and national carmakers will provide a matching grant for car owners who trade in their old cars for new ones.
Under the scheme, the two will provide up to RM4,000 for those who dispose of their cars older than 20 years old and replace them with a new national car.
“Cars older than 20 years are not economical and pose a safety risk,” said Prime Minister Anwar Ibrahim in his Budget 2026 speech in the Dewan Rakyat today.
In addition, he said elements of a lemon law will be included in the Consumer Protection Act 1999 to safeguard the rights of consumers from purchasing defective vehicles.
Prime Minister and Finance Minister Anwar IbrahimAnwar, who is also the finance minister, said the Act will be amended to include the law that seeks to provide consumers with a remedy so they can obtain compensation for products that fail to meet standards.
He further referenced the Consumer Credit Bill 2025, which was passed in the Dewan Rakyat in July to protect the interests of credit consumers in the nation.
The bill aims to establish the Consumer Credit Bill to address significant gaps in the unregulated industry, especially businesses that target vulnerable credit consumers susceptible to exploitation.
In June last year, the Domestic Trade and Cost of Living Ministry said it was aiming to introduce a lemon law or amend existing acts related to defective vehicles in March this year for a more comprehensive consumer protection framework in line with current demands.
In November, however, Domestic Trade and Cost of Living Minister Armizan Ali told the lower house that a study on the need for a lemon law in Malaysia will conclude soon.
Domestic Trade and Cost of Living Minister Armizan AliAnwar also affirmed that moves to separate the roles of the public prosecutor and the attorney-general are at the engagement stage, with input being considered from all relevant stakeholders.
“The law reform team that has been established is reviewing comprehensive reforms to criminal and contract laws, including by drafting a new Admiralty Jurisdiction Bill and a new Coroners Bill,” he added.
Public transport initiatives
Meanwhile, Anwar also announced a slew of public transport initiatives in his Budget 2026 speech.
Among others, he said the free MyRailLife passes currently provided to people with disabilities and schoolgoing children will be expanded to include children below six years old.
Prasarana will spend RM1 billion replacing 26 trains serving the Kelana Jaya LRT line. In addition, it will receive 310 new buses to increase frequency in high-demand areas by February 2026, and 300 vans for the Demand Responsive Transit (DRT) programme.
Prarasara will acquire 1,450 electric buses and 300 electric vans in phases up to 2030 to transition to a low-carbon fleet. - Mkini

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