Malaysia legislation

Section 12

of HIRE-PURCHASE (AMENDMENT) ACT 2026

Section 12

Subsection 15(6) of the principal Act is amended by substituting for paragraph (a) the following paragraph:

“(a) “balance outstanding under the hire-purchase agreement”

means—

(i)

the outstanding amount financed; and

(ii)

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—

(A)

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

(B)

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

Hire-Purchase (Amendment)

(C)

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

Amendment of section 18

Section 12 — AKTA SEWA BELI (PINDAAN) 2026 | mylaw.my