KUALA LUMPUR: Banks in Malaysia will introduce changes to hire-purchase financing practices following the implementation of the Hire-Purchase (Amendment) Act 2026 (HPAA), which takes effect on June 1, 2026.
In a joint statement, the Association of Banks in Malaysia (ABM), Association of Islamic Banking and Financial Institutions Malaysia (AIBIM) and the Association of Development Finance Institutions of Malaysia (ADFIM) said banks will provide goodwill discounts to eligible customers who choose to early settle existing fixed-rate hire-purchase financing that applies the Rule of 78 method.
