Key facts
- Loan sharks in Malaysia have escalated tactics from paint-throwing to petrol bombs and arson.
- Victims are subjected to psychological intimidation, including mock funerals staged on social media.
- The Malaysian Chinese Association (MCA) is launching a nationwide initiative with its youth and women's wings to assist victims and gather data.
- Police are escalating serious cases involving arson and threats to life to the Criminal Investigation Department.
- Six individuals believed to be 'runners' for a loan shark syndicate have been arrested in connection with arson and paint-splashing incidents.
Loan sharks in Malaysia have escalated their violent tactics, moving beyond paint-splashing to firebombing homes and employing psychological warfare through mock funerals staged on social media. The Malaysian Chinese Association (MCA) has launched a nationwide initiative, involving its youth and women's wings, to address the growing problem and support victims.
MCA Public Services and Complaints Department head Datuk Seri Michael Chong stated that these acts are becoming increasingly rampant, with perpetrators showing no regard for the law. He noted that the cost of these violent acts, including the creation of petrol bombs, is often added to the borrowers' accounts, further increasing their debt. Even victims who have spoken out publicly or lodged police reports have faced retaliatory attacks, including petrol bombs and paint splashing at their homes.
Chong revealed that the MCA has engaged with the police, including the Commercial Crime Investigation Department (CCID). Serious cases involving arson and threats to life are now being referred to the Criminal Investigation Department (CID). The MCA's initiative aims to strengthen public awareness, educate victims on filing proper police reports, and assist them in doing so to ensure cases reflect their seriousness and prompt immediate action. Wanita MCA deputy chairperson Tee Hooi Ling highlighted that many victims are family members affected by loans taken by spouses or children, even if they were not the primary borrowers.
Recent arrests include six individuals, two of them women, believed to be 'runners' for a loan shark syndicate involved in criminal intimidation, including paint-splashing and Molotov cocktail attacks across several states. These arrests followed a report by a retiree whose house was splashed with red paint, believed to be linked to his tenant's unlicensed loan. The perpetrators are reportedly paid between RM400 and RM800 for such acts. The MCA has also noted that some individuals posing as lenders are actually criminal extortionists, particularly those advertising online, and urged the public to avoid them. As of June, the MCA's department recorded 165 loan shark-related cases involving approximately MYR18.6 million, with over 85% originating from the Chinese community.