Parliament Approves Hire Purchase Reform to End Outdated Loan Interest Calculations
The Dewan Rakyat has passed the Hire Purchase (Amendment) Bill 2025, officially abolishing the long-standing flat rate and the Rule of 78 in hire-purchase loan calculations — a move that promises fairer and more transparent financing for Malaysians. The Rule of 78, a decades-old method, calculates interest based on the original loan amount, which means