Combatting Ah Long Syndicates:

Towards a Shari’ah-Compliant Legislative Framework for Financial Integrity in Malaysia

Nehaluddin Ahmad

Zheimie H. Zamri

 

Abstract: Illegal money lending has become a growing issue in Malaysia, especially with the activities of the Ah Long syndicate. This practice poses a significant threat not only to the country's financial integrity but also to the welfare of its citizens. The dual legal system in Malaysia, where civil and Shari’ah laws coexist, makes it challenging to regulate these activities. Despite the efforts made by the Central Bank of Malaysia to curb illegal lending, many Malaysians still resort to Ah Long loans due to limited access to inclusive financial services. In 2021 alone, over 20,000 complaints of violence related to Ah Long's activities were reported. To address this issue, a Shari’ah-compliant legislative framework tailored to Malaysia's context is suggested. This legislation aims to tackle the root causes of illegal lending while ensuring the welfare of the Muslim community. Collaborative efforts among government agencies, law enforcement, financial institutions, and NGOs are vital in combating the Ah Long syndicates effectively. By prioritising adherence to Islamic principles and promoting financial inclusion, Malaysia can progress towards a more ethical financial landscape, bolstering economic stability and societal well-being. This issue is a collective responsibility, aligning with the Islamic principle of avoiding harm to oneself and others, particularly for the Muslim community in Malaysia.