PETALING JAYA: With the increase in the price of basic necessities, crime watch groups have cautioned Malaysians against turning to illegal moneylenders even if they are in need of extra cash in view of the current school holidays and the coming Hari Raya.
Malaysian Crime Prevention Foundation vice-chairman Datuk Seri Johny Ch’ng Ewe Gee said besides having to repay the amount at an interest, borrowers who defaulted might face serious repercussions from these ah long.
“Think twice when borrowing money from these loan sharks as there is a high price to pay.
“It is not worth the hassle and trouble for a temporary respite.
“I believe it is better to plan and spend prudently according to our means,” he said.
Kuala Lumpur Crime Prevention Practitioners Association chairman Bok Siew Mun agreed with Ch’ng, saying that borrowing from illegal sources would not only bring trouble to the borrowers and their family members, but also to the people around them.
“Many have fallen victim to ‘attractive’ offers made by these unlicenced moneylenders, especially via social media platforms and posters pasted on trees and buildings.
“Borrowing from them is never a good idea, even if you are facing a cashflow problem,” he said, citing many cases of violent acts by debt collectors such as throwing red paint, locking doors with padlocks and other threatening methods, as well as actual physical harm.
In some cases, Bok said victims would also be pressured into borrowing more to settle one debt with another loan.
He added that licensed lenders and some banks were also enticing people into taking up loans through phone calls, which was not good as they would be burdened with long-term debts.
“The loan will never get paid off and may result in the borrower being declared bankrupt,” he said.
During the Feb 24 tabling of the revised Budget 2023, Prime Minister Datuk Seri Anwar Ibrahim announced that the bankruptcy status for 120,000 insolvents would be automatically lifted today.
“As at January, there are more than 260,000 bankruptcy cases recorded, the majority involving young Malays who have the potential to contribute to the economy.
“The government will amend the Insolvency Act so that bankruptcy cases can be automatically released quickly.
“While waiting for the amendments, cases with debts of less than RM50,000 will be lifted from bankruptcy if certain conditions are fulfilled,” said Anwar, who is also the Finance Minister.
