Malaysia legislation

Section 13

of HIRE-PURCHASE (AMENDMENT) ACT 2026

Section 13

Section 18 of the principal Act is amended—

(a)

by substituting for paragraph (1)(b) the following paragraph:

“(b) the hirer may recover from the owner, the difference between the value of the goods and the balance outstanding under the hire-purchase agreement, if any, at the time of the owner so taking possession of the goods.”;

(b)

by substituting for subsection (2) the following subsection:

“(2)  Where the owner takes possession of any goods comprised in a hire-purchase agreement, the owner is not entitled to recover any sum, whether under a judgment, an order or otherwise, which exceeds the balance outstanding under the hire-purchase agreement.”;

(c)

by deleting paragraph (3)(a); and

(d)

by substituting for paragraph (3)(aa) the following paragraph:

“(aa) the balance outstanding under the hire-purchase agreement is—

(i)

the outstanding amount financed; and

(ii)

terms charges accrued and calculated up to the time of the owner so taking possession of the goods, 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

(C)

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

Amendment of section 43

Section 13 — AKTA SEWA BELI (PINDAAN) 2026 | mylaw.my