Johor police have dismantled an unlicensed loan shark syndicate that preyed on Malaysians working in Singapore through a social media recruitment operation.
Four suspects were arrested on 17 Apr 2025 during raids across Johor Bahru, reported Malay Mail.
Malaysian Police Arrest Four in Loan Shark Crackdown
Johor police chief Datuk M Kumar announced the arrest of four individuals connected to an illegal moneylending operation.
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Three Malaysian men aged between 30 and 34, along with a 27-year-old woman, were apprehended by the Johor Baru Selatan district police’s D7 Criminal Investigation Division.
The suspects allegedly served as foot soldiers for a loan shark syndicate that has been active across Johor and Pahang since March.
All four tested positive for methamphetamine at the time of arrest.
Police seized several items during the raids, including a car, four mobile phones, a can of paint, a small knife, house keys with keychains, victim information sheets, and materials used for writing threat notes.
Social Media Loan Scheme Targeted at Overseas Workers
The criminal group specifically targeted Malaysians employed in Singapore by advertising loan services through popular social media platforms like Facebook and TikTok.
Kumar explained that loans were transferred directly into borrowers’ bank accounts without formal agreements.
Interest rates charged by the syndicate ranged from 20 to 50 percent, with all transactions conducted through Singapore-registered accounts.
The group allegedly received payments between RM100 (S$30) and RM350 (S$107) to intimidate borrowers who failed to repay their loans on time.
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These intimidation tactics included splashing paint on properties, locking victims’ homes, and issuing threats.
Following the arrests, police believe nine separate cases have been solved – six in various parts of Johor, including Johor Baru Selatan, Johor Baru Utara, Kluang, and Seri Alam, with an additional three cases in Pahang.
The suspects face charges under Section 427 of the Penal Code for mischief, Section 29B of the Moneylenders Act 1951 for harassment of borrowers, and Section 15(1)(a) of the Dangerous Drugs Act 1952 for drug use.
Under Malaysia’s Moneylenders Act, unlicensed moneylenders can face fines ranging from RM250,000 (S$76,000) to RM1 million (S$305,000), imprisonment for up to five years, or both. Repeat offenders may also face caning.
The suspects were scheduled to be charged at the Batu Pahat Magistrates’ Court on 8 May 2025.
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