MAA welcomes gov’t transfer to implement lemon regulation in Malaysia, however says clear definition, standards is required

As introduced throughout the tabling of Price range 2026 by prime minister and finance minister Datuk Seri Anwar Ibrahim, the federal government is ready to amend the Client Safety Act 1999 to include components of a lemon regulation in Malaysia to guard the rights of shoppers with regard to automotive purchases.

This follows on a six-month feasibility research carried out final yr, which concluded that there was a necessity to ascertain a particular authorized framework to deal with points and limitations associated to client safety within the automotive trade. Subsequently, the home commerce and value of residing ministry (KPDN) drafted a cupboard paper earlier this yr proposing amendments to the Client Safety Act 1999 to incorporate provisions for a lemon regulation.

Whereas no timeframe for the enactment was indicated, the transfer was heralded by the Malaysian Automotive Affiliation (MAA). In an announcement, the affiliation mentioned it helps and welcomes the federal government’s transfer to amend the Client Safety Act 1999 to incorporate the lemon regulation provision, which is in step with its earlier suggestion to combine this component throughout the present Act relatively than creating a brand new regulation.

In an effort to guarantee efficient implementation of the lemon regulation, the affiliation proposed that clear definitions and standards must be established to establish what constitutes a “lemon” car, together with limits on restore makes an attempt and timeframes.

It added that there was additionally a necessity for truthful and standardised processes be set for evaluation, mediation and determination to keep away from ambiguity and misuse of the supply. Moreover, stakeholder engagement and consciousness programmes are additionally wanted to coach each shoppers and trade gamers on their rights and obligations beneath the amended regulation.

A lemon regulation is a type of client safety, and there have been many calls to implement it right here previously. In essence, it requires vehicles beneath guarantee which can be discovered to be faulty or unsafe to be absolutely repaired by the producer. Within the occasion the car is deemed to be irreparable after an inexpensive variety of restore makes an attempt, the customer may be provided a refund or substitute.

The scope of what’s lined by a lemon regulation differ relying on how it’s applied, but it surely typically covers defects that may considerably affect the performance or security of the automobile. International locations akin to the US, Australia, Canada, Singapore and the Philippines have already adopted some type of lemon regulation.

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