Budget 2026: Lemon Law set to be introduced in Malaysia


During the tabling of Budget 2026 today, Prime Minister Anwar Ibrahim announced that a new “Lemon Law” will soon be realised under the upcoming amendment to the Consumer Protection Act 1999 — a move aimed at strengthening consumer rights and offering better protection for buyers of products ranging from clothing and electronics to cars.

The Lemon Law will grant consumers protection against broken or defective products. Sellers will be held more accountable for the products they sell and must ensure that consumers are given proper recourse when a product fails to meet expected standards of quality and safety.

The law has long been championed by consumer rights groups and will mark a new age of consumerism in Malaysia once it is implemented — shifting the balance of power to favour buyers instead of sellers, and allowing more consumer confidence. 

The Lemon Law has been examined through a six-month legal study conducted by the Government from June to November 2024. This was then followed by a proposal from the Domestic Trade and Cost of Living Ministry (KPDN) to amend the Consumer Protection Act 1999 — resulting in its proposal today.

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