KUALA LUMPUR — Loan sharks in Malaysia, often referred to as ah longs, are adopting increasingly disturbing tactics to pressure defaulters — including staging mock funerals and publicizing them on social media to instill fear and shame.
Datuk Seri Michael Chong, head of the Malaysian Chinese Association’s (MCA) Public Services and Complaints Department, revealed a shocking new trend during a press conference at Wisma MCA on July 1. He described how one borrower, Mr Tan, was shocked to find a photograph of himself set in a mock funeral posted online. The post included curses and a joss stick, suggesting his symbolic “death.”
“This is a form of psychological warfare,” said Mr Chong. “They are not just threatening anymore. They are humiliating borrowers in the most culturally offensive way possible.”
Mr Tan had initially borrowed RM10,000 (S$3,022) for his business in February 2025 and had repaid RM6,000. Prior to that, he had cleared five loans totaling RM50,000. On June 26, he received a disturbing image of a staged wake in his name, which was later removed from social media.
In another incident, Mr Chong highlighted the case of Mr Chan, who had borrowed RM700 but ended up paying RM1,000 to a man identified as Mr Kai Qiang. Mr Chong suspects the lender may be a rogue runner acting independently from a licensed lender. Mr Chan reportedly took loans from nine different ah longs, settled two on his own, and has so far paid RM4,800 out of RM12,500 owed on the remaining seven.
Mr Chong also shared the heartbreaking story of Madam Kuek Bee Bee, 63, whose son Chang Kok Wah, 37, fled their Cheras home on June 17, leaving his family to endure harassment from debt collectors. Despite having paid RM13,000 of his debts in May 2025, her family continues to receive threats, including menacing phone calls and warnings of possible abductions involving her grandchildren. On one occasion, their home was locked from the outside with chains and a padlock. A note was left instructing them to contact several unknown numbers. The family has since filed three police reports.
As of June 2025, the MCA has documented 165 complaints related to illegal moneylending, involving a total of RM18.6 million in debts. According to Mr Chong, over 85 percent of the victims are from the Chinese community. MCA’s deputy chief Ivan Tan stressed the need for stricter legislation to combat the growing menace of unregulated loan sharks and rogue agents. He said stronger enforcement and legal reforms are essential to protect borrowers from psychological abuse and financial exploitation.