As per title, any bank already started offering HP based on reducing balance calculation?

They have 18months to comply from Oct2025 so the deadline is Mar2027. Most likely Maybank or CIMB will launch first in 2026.

What is the different compare to the normal HP?

If u settle earlier, you pay less on interest.

But wasn't sure how it compared if follow whole term

Once change to reducing balance loan, the interest rates will also go up. Will not be 2%+ anymore but will start from 4%+ or even higher base. Good for those who usually sell their cars or settle early but no difference if you plan to pay the full tenure.

prefer old way

I completely overlooked at this aspect. So it will benefit car companies also

If you want to see it that way, then yes. But even right now most people don't know how any of this works and just do as they like (i.e. change car based on their fancy). So, I don't think it will make much difference in this aspect. Depending on how the law is implemented, car companies may have more flexibility in providing fancy leasing & financing options that exist in Europe such as Mercedes-Benz Agility etc. (the current version in Malaysia is not as flexible as those in Germany). End of the day, will be win-win for all compared to being restricted to the stupid hire-purchase method for motor vehicles. Simple interest loans are a fucking scam.

current fixed-rate loan also got rebate for early settlement.. and knowing banks, they might increase the interest rate for the reducing balance loan type to offset their loss..
bank will always win. I hope this is not the case.

Do you have any idea what's the ballpark in term of the rebate for early settlement?
I guess the bank can implement lock in period once this policy is in place. Banks are not stupid

i dont know lol. the earlier we settle, the higher the rebate. i use calculator like this car-and-personal-loan-settlement-calculator to check.

yeah, banks may introduce a penalty fee for early settlements if they cannot increase the interest rate.. or whatever tricks they can use.