Malaysia legislation

Section 11

of HIRE-PURCHASE (AMENDMENT) ACT 2026

Section 11

Section 14 of the principal Act is amended—

(a)

by deleting subsection (2); and

(b)

by inserting after subsection (3) the following subsection:

“(4)  For the purposes of this section, “net balance due”

means—

(a)

the outstanding amount financed; and

(b)

terms charges accrued and calculated up to the next due date of payment or the day specified in the notice, whichever is later, less any surrender value of a contract of insurance where—

(i)

the contract of insurance is taken to cover the amount financed;

(ii)

the premium for the contract of insurance is paid by the hirer in instalments to the owner; and

(iii)

the surrender value is received or will be received by the owner upon cancellation of such contract.”.

Amendment of section 15

Section 11 — AKTA SEWA BELI (PINDAAN) 2026 | mylaw.my