Loan shark syndicates in Malaysia should be classified and pursued as organised crime groups due to their increasingly violent and coordinated tactics, says the Malaysian Humanitarian Organisation (MHO).
MHO secretary-general Datuk Hishamuddin Hashim urged authorities, especially the police, to take action against these syndicates under Section 130V of the Penal Code, the same law used against triads, drug cartels, and human-trafficking networks.
Hishamuddin described the loan shark networks as operating like “mafia outfits,” complete with financiers, runners, debt collectors, and even corrupt enablers. He revealed that victims were often threatened, assaulted, and publicly humiliated.
He added that many of these groups disguise themselves as licensed moneylenders but continue to impose exorbitant monthly interest rates—sometimes up to 18% per month, far exceeding the legal limit of 12% annually for secured loans and 18% annually for unsecured ones.
Hishamuddin also urged police to investigate the syndicates under the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001, which criminalises the handling of unlawful proceeds.
Among the victims was businessman Hanizal Mad Dali, 45, who said he applied for a RM9,000 business loan online last year but only received RM4,500.
Hanizal pleaded for stronger enforcement to protect victims and prevent further violence.
