By Danial Dzulkifly
KUALA LUMPUR, July 21 — Petaling Jaya MP Lee Chean Chung today called for unlicensed moneylenders, commonly known as “ah long” or loan sharks, to be absorbed into a regulated financing system under the Consumer Credit Bill 2025, arguing that punitive action alone has failed to curb their growing influence.
Debating the bill’s second reading in the Dewan Rakyat today, Lee said the proposed Consumer Credit Commission under the Act must move beyond enforcement by offering simplified registration pathways for informal lenders.
Loan sharks often cater to borrowers who are unable to obtain additional credit from formal financial institutions.
“The existing lending ecosystem reflects a real need, from small traders struggling with cash flow to families unable to pay school fees or patients without access to emergency funds,” he said.
Lee also criticised persistent enforcement failures, pointing to how many loan shark cases are dismissed as civil matters by police despite involving criminal elements under commercial crime.
“Why is it that Bank Negara Malaysia and the (future) Consumer Credit Commission cannot share data with police? These lenders operate openly and advertise without fear, yet enforcement remains toothless,” he said.
He also lamented how loan sharks have been normalised, from red paint splashed on homes of defaulters to threatening debt notices posted in public.
“We cannot view this issue solely through the lens of enforcement and punishment. Instead, we need to design a framework that enables lenders today to become more capable, competitive, and efficient, while ensuring compliance costs are not overly burdensome,” he said.
Lee added that regulation must balance consumer protection with realistic compliance thresholds to avoid driving borrowers and lenders further into the shadows.
In his debate, Lee also raised concerns about buy now, pay later (BNPL) services, criticising platform-specific restrictions that could stifle competition.
“Why are BNPL services like SPayLater and Grab PayLater limited to their own ecosystems? This creates oligopolistic conditions and restricts consumer choice,” he said, urging for open-access infrastructure to promote fair competition in the credit market.
The Consumer Credit Bill 2025 aims to streamline Malaysia’s fragmented credit landscape and establish the Consumer Credit Commission as a central regulatory body.
Among its key responsibilities, the commission will advise the government on a national credit policy, promote responsible lending practices, and oversee licensing based on a “fit and proper” principle.
