Event for licensed moneylenders mocked for Ah Long link

PETALING JAYA: An award ceremony last week for licensed moneylenders was aimed at raising the image of the industry, a government source said today after online criticism that “Ah Long” (loan sharks) were being honoured.

“The allegations made it sound like the minister is giving awards to Ah Longs, which is a misrepresentation,” a source from the housing and local government ministry told FMT.

The source defended the decision to host the Madani Credit Awards 2024, following criticisms that the event held last Friday was intended to reward an industry often associated with illegal moneylending.

Instead, the event was aimed at rebranding the moneylending and pawnbroking industry as a professional sector that provides much-needed credit access to underserved communities, the source said.

The source also dismissed claims that the awards ceremony was politically-motivated.

The source clarified that licensed moneylenders and pawnbrokers operate under strict regulations set by the ministry, with a maximum interest rate of 2% per month.

“These services provide a lifeline to communities unable to secure loans from banks, helping to prevent reliance on illegal loan sharks.

Without such access, underserved communities might turn to unregulated lenders, the source said.

The source also pointed out that some pawnbrokers are publicly listed on Bursa Malaysia, further highlighting the industry’s legitimacy and its contribution to the economy.

Earlier today, an online news portal reported that the event, organised by a ministry headed by DAP vice-chairman Nga Kor Ming, faced criticism from netizens.

Some alleged that it demonstrated the Chinese-majority party leveraging its government position to benefit an industry perceived as part of its ecosystem.

The awards ceremony, held in collaboration with associations of moneylenders and pawnbrokers, was the first event of its kind in Malaysia.

As of Sept 30, there were 4,315 licensed moneylenders, with 3,141 operating in Peninsular Malaysia under the ministry’s regulation.

The remaining 1,174 license holders in Sabah, Sarawak, and Labuan fall under the jurisdiction of their respective state licensing authorities. During the same period, there were 902 licensed pawnbrokers nationwide, all regulated by the ministry.