CAP’s Comments on BUDGET 2026

The Consumers Association of Penang (CAP) lauds some of the measures outlined in the National Budget 2026 but is at the same time disappointed that the government is not taking more effective measures to protect the nation’s health and the environment.

CAP welcomes the introduction of the Lemon Law through the amendments to the Consumer Protection Act. CAP has been actively campaigning for a lemon law to protect car buyers from defective vehicles. Lemon Law is a remedy for purchasers of consumer products, particularly motorized vehicles,  that repeatedly fail to meet the standards of quality and performance. We hope the Lemon Law is extended to new cars as well.

We are also glad that the government has agreed to table the Anti-Bullying Bill 2025 at this parliamentary session. Mobilization efforts such as awareness campaigns and skills-building programmes are needed to curb the phenomenon of bullying. By addressing both the behaviour and the underlying social environment, hopefully it will create a long-term cultural shift and prevent future bullying.

It is good that the welfare of the poor and the marginalised are being taken care of with more allocations to meet their needs and to address the increase in cost of living. We hope that the targeted subsidies are delivered directly to low-income and vulnerable groups, and it is ensured that there are no leakages.

Rebates for purchase of energy-efficient appliances are a good move because it offers immediate financial savings for consumers and encourage the adoption of products that reduce long-term energy consumption and environmental impact.

We are very disappointed that the excise duty rate on cigarette products will only be increased by 2 cents per stick; cigars, cheroots and cigarillos increase by 40 ringgit per kilogram; and heated tobacco products will increase by 20 ringgit per kilogram. These are too low to reduce the prevalence of smoking.

We are also disappointed with the minimal increase in the budget allocated to the Ministry of Health, with only RM46.5 billion ringgit allocated for 2026, an increase of only RM1.2 billion compared to last year. Besides providing and improving health care services, the government needs to invest more in preventative measures and health promotion activities to reduce the long-term costs associated with treating chronic diseases and other health issues.

We were also hoping that more measures will be taken and more budget allocated to address pollution, prevent environmental crimes, ensure environmental protection and invest in community-led zero waste efforts. This is not reflected in this year’s budget.

Mohideen Abdul Kader
President
Consumers Association of Penang

Media Statement, 10 October 2025