THE Ministry of Domestic Trade and Cost of Living (KPDN) has announced that it will present a series of major consumer protection reforms to Parliament this year, with the introduction of a Lemon Law specifically targeting compensation claims for new vehicle purchases.
Minister Datuk Armizan Mohd Ali said the move aims to close existing gaps in the legal framework while providing more detailed mechanisms for resolving disputes.
“The issue is important, but to ensure the best approach, we must also consider industry acceptance and study best practices from other countries with similar legislation,” he said during a press conference following the Ministry’s 2026 New Year address.
Armizan highlighted that, in addition to the Lemon Law, KPDN plans to amend the Competition Act 2010 and the Competition Commission Act 2010 to strengthen enforcement against cartels and monopolistic practices that harm consumers.
“Both Acts are expected to be tabled for their first reading by the end of this parliamentary session,” he added.
Acknowledging the rapid growth of digital transactions, the Minister said the reforms would also cover e-commerce regulations under the Electronic Commerce Act 2006 to enhance platform accountability and safeguard consumer interests.
“We are evaluating the regulatory framework required to ensure that consumers who purchase via e-commerce platforms receive their goods as promised, both in quality and quantity,” Armizan stated.
Further measures include amendments to the Direct Sales and Anti-Pyramid Scheme Act 1993 to prevent fraud and exploitation, ensuring that the industry develops ethically and sustainably.
Plans are also underway for a Personal Property Security Act, which will establish a formal registration system for movable property used as collateral, providing clarity and security for both consumers and lenders.
Armizan explained that these initiatives are part of KPDN’s broader strategic framework, guided by the theme ‘KPDN KITA: Realising the People’s Aspirations,’ which has been in place since 2024.
The framework focuses on four core pillars: agile enforcement, domestic economic drivers, consumer capability and advocacy, and NACCOL as a nationwide approach.
The Ministry’s strategy is executed through four key variables: government inclusivity and organisational excellence, industry commitment, governance integrity, and public aspiration and participation.
For 2026, three main indicators have been established to ensure public aspirations are translated into tangible outcomes.
“These indicators involve the translation of blueprints – covering policies, strategic plans, and programmes – into footprints in the form of initiatives, programmes, and enforcement actions, ultimately producing imprints that reflect performance indicators, price stability, and public engagement,” Armizan explained.
He emphasised that the primary goal of this approach is to ensure that policies and plans, informed by public consultation, are transformed into concrete actions and measurable benefits that Malaysians can see, experience, and rely upon in their daily lives. - January 21, 2026
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