KOTA KINABALU: The Hire Purchase (Amendment) Act 2026, aimed at strengthening consumer credit fairness and modernising hire purchase agreements, will come into force on June 1, four months after it was gazetted on Jan 30, 2026. Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali said a transition period may be given to hire purchase providers that require time to adjust their systems, documentation and processes to meet the new requirements. The amendments also support digital transformation by allowing the use of technology in hire purchase agreements, including digital signatures and electronic submission of documents to improve efficiency in the agreement process. "This includes the enactment of the Consumer Credit Act 2025 (Act 873), which was passed by the Dewan Rakyat on July 21, 2025 and the Dewan Negara on Sept 4, 2025. "Act 873, which is regulated by the Finance Ministry, came into force on March 1, 2026," he said.

Source: The Star March 15, 2026 08:03 UTC