Kuala lumpur: The Dewan Negara today passed the Hire-Purchase (Amendment) Bill 2025, aimed at enabling the use of modern technology to formalise hire-purchase agreements and make them more comprehensive in line with current practices. The bill was approved by a majority vote following debates by 11 senators.

According to BERNAMA News Agency, Deputy Minister of Domestic Trade and Cost of Living Datuk Dr Fuziah Salleh stated that the amendments to the Hire-Purchase Act 1967 (Act 212) include 22 clauses. These clauses recognize digital signatures, electronic documents, and digital verification methods as legally valid for hire-purchase agreements under the Digital Signature Act 1997 (Act 562).

She further explained that while new electronic methods, including automatic document submission, will be allowed, users who are not comfortable with these technologies may still use traditional physical procedures. This ensures that all users have options that suit their comfort levels.

Additionally, Fuziah mentioned the repeal of Regulation 78 for fixed-rate hire-purchase loans. This change would benefit borrowers by calculating interest based on the outstanding loan balance, allowing them to better understand the breakdown of their monthly instalments between interest and principal.

Fuziah highlighted that the savings would be greater if users choose to settle the hire-purchase contract early. Regulation 78 previously caused higher interest payments at the start of the loan, affecting borrowers' financial planning.