CAP Welcomes Consumer-Friendly Budget 2026 Measures
The Consumers’ Association of Penang (CAP) applauds several consumer-focused measures announced on 10 October 2025 in the 2026 Budget, including the long-awaited Lemon Law and the proposed Anti-Bullying Bill.
The Ministry of Education (MoE) should expedite the drafting of new amendments to the Education Regulations (Student Discipline) under the Education Act 1996, as the number of reported bullying incidents in primary and secondary schools has escalated sharply in recent years.
There were 326 reported cases in 2021, though the figure may be understated due to school closures during the Movement Control Order. The number then rose steeply to 3,887 cases in 2022; 6,528 cases in 2023; and more than 7,600 in 2024. Such statistics are deeply alarming.
Bullying in schools is a complex issue influenced by multiple factors, including poor parenting and social environments that expose children to violence and cruelty. The Ministry of Education (MoE) should strictly enforce the Anti-Bullying Act currently being developed. Education, counselling, and community involvement are also essential to ensure that anti-bullying measures take a holistic approach. Every school should establish a confidential and accessible reporting mechanism, such as suggestion boxes, helplines, or digital platforms, to allow students to report bullying safely.
The Lemon Law is a remedy for purchasers of consumer products, particularly motor vehicles, that repeatedly fail to meet standards of quality and performance. It strengthens the Consumer Protection Act (CPA) and give consumers saddled with ‘lemons’ — products that appear attractive but turn out defective — an affordable and accessible avenue for legal redress.
The Consumer Protection Act (CPA) grants Malaysian consumers the right to claim against companies that sell defective goods or provide poor service. However, the existing claim limit of RM50,000 disqualifies most vehicle-related cases from being pursued through the Tribunal for Consumer Claims Malaysia (TTPM).
The RM1.6 billion allocation for the Food Security Fund to boost domestic food production and build up strategic stockpiles of essential items such as rice, sugar, cooking oil, and wheat flour is both timely and necessary. Malaysia’s heavy reliance on food imports makes it vulnerable to price shocks, distribution disruptions, and geopolitical instability. This initiative comes at a time when the agriculture sector is struggling with low productivity, rapid urbanisation, climate change, and water management challenges.
If Malaysia fails to safeguard its food security, consumers will face escalating uncertainties such as the sharp rise in onion prices caused by bad weather in 2023 affecting imports from India. The government must therefore take a holistic approach to agricultural reform — re-examining land use policies, preventing the conversion of agricultural land for commercial or residential purposes, addressing farmers’ challenges, and strengthening the produce distribution chain.
A search on Google Scholar revealed more than 2.8 million research papers on Malaysian agriculture. Even a small fraction of these may contain valuable ideas worth revisiting or adapting from successful models implemented by neighbouring countries.
The RM300 million allocation to clean up and rehabilitate rivers is a positive environmental step, yet it will be futile if enforcement remains weak. Past efforts have often faltered as rivers and drains soon became clogged again with rubbish. The government should monitor all discharge points and take firm action against individuals and businesses that pollute waterways.
CAP also welcomes the government’s proposal of a special tax deduction for the renovation and conversion of commercial buildings into residential premises. In 2017, CAP cited the case of the iconic Arcade in Providence, Rhode Island, which was revitalised by converting its upper floors into 225 sq ft micro-lofts while retaining retail units on the ground floor. Built in 1828, the Arcade is the oldest indoor shopping mall in the United States, and after its conversion in 2013, demand soared with over 4,000 people on the waiting list by 2016. This model demonstrates the economic and social potential of adaptive reuse in addressing urban housing shortages.
Budget 2026 presents a commendable mix of consumer protection, social welfare, and sustainable development measures. The introduction of the Lemon Law, renewed emphasis on education discipline, food security initiatives, and urban renewal incentives signal a government that recognises the daily challenges faced by ordinary Malaysians. However, the true test lies in execution — policies must be followed through with firm enforcement, transparent oversight, and long-term planning. If these measures are effectively implemented, they could significantly strengthen consumer confidence, social harmony, and national resilience in the years ahead.
Mohideen Abdul Kader
President
Consumers’ Association of Penang
Press Statement, 15 October 2025