Malaysia legislation

Section 9

of HIRE-PURCHASE (AMENDMENT) ACT 2026

Section 9

Amendment of section 6b

(a)

in the shoulder note, by substituting for the words

“base lending rate” the words “effective interest rate”;

(b)

in subsection (1)—

(i)

by substituting for the words “base lending rate”

the words “effective interest rate”; and

(ii)

by inserting after the words “the continuance of the agreement” the words “based on the prevailing reference rate”;

Hire-Purchase (Amendment)

(a)

the revised effective interest rate; and

(b)

the revised amount of instalments or the revised number of instalments, as the case may be.”;

and

(c)

in subsection (2), by substituting for the words “base lending rate” the words “effective interest rate”;

(d)

by substituting for subsection (3) the following subsection:

“(3)  Where the owner has revised the effective interest rate, he shall serve a notice to the hirer fourteen days prior to the date the revised effective interest rate comes into effect specifying the following:

(e)

by inserting after subsection (3) the following subsection:

“(4)  An owner who contravenes subsection (3) shall be guilty of an offence under this Act.”.

Amendment of section 6c