The Ministry of Domestic Trade and Cost of Living (KPDN) has introduced two interim strategies to protect consumers regarding the right to claim compensation, particularly for the purchase of motor vehicles, before the finalisation of new a new legal framework related to the Lemon Law.

According to KPDN Minister Datuk Armizan Mohd Ali, in collaboration with Bank Negara Malaysia (BNM) and banking institutions, these strategies involve establishing a standard operating procedure (SOP) to process applications for consent letters from consumers.

Additionally, banking institutions have been requested to set up a dedicated internal unit to receive and process any such applications.

“Starting from September 2, BNM has already issued a directive asking banks and other financial institutions to establish an SOP to allow consumers to apply for and obtain a consent letter.

“Following this cooperation, BNM has instructed banking institutions to implement both initiatives by December 3,” he stated.

These strategies are the government’s intervention initiatives aimed at ensuring that consumers have access to fair and effective resolution solutions before the Lemon Law is implemented.

Armizan noted that under the existing legislation, the platform for vehicle consumers to claim their rights is through the Malaysian Consumer Claims Tribunal (TTPM).

He added that through this strategy, consumers can seek solutions to issues they are facing, in line with the consumer protection principles in the country.

“From January to August this year, KPDN received 114 compensation claims for vehicles and 187 complaints involving used vehicles at TTPM were applied. Another 16 complaints have been referred to a special negotiation team as of January to September this year,” he said.

KPDN is currently studying the implementation and enforcement of legislation related to the Lemon Law in Malaysia, which provides redress rights to buyers of motor vehicle and other consumers goods to obtain remedies for products that repeatedly malfunction or fail to meet the quality and performance standards.

The remedies that consumers or buyers can claim under the Lemon Law include repairs, replacements, price reductions, or refunds.