Arson-for-hire at RM400: Johor police uncover loan-shark scheme using fires and threats to pressure debtors

MALAYSIA: Johor police have arrested two local men, aged 45 and 46, alleged to be part of an illegal moneylending syndicate notorious for using arson and paint-splashing to intimidate debtors.

Johor Police Chief Datuk Ab Rahaman Arsad said the men were detained in Segamat on 18 November following intelligence-led operations.

Paid to Burn Homes and Threaten Debtors

Investigations revealed that the suspects had been active since early August, receiving instructions directly from loan-shark operators.

Each arson attack earned them RM800 (approximately US$190) while paint-splashing or posting threat notices brought RM400 (approximately US$97).

The violence was used to terrorise borrowers who struggled to repay illegal loans carrying interest rates as high as 20% to 50%.

Singapore-Based Transactions and Targets

Police said the syndicate advertised heavily on social media and specifically targeted Malaysians working in Singapore, conducting all financial transactions through Singapore-registered bank accounts.

This cross-border structure allowed the gang to mask operations and complicate enforcement.

During the arrests, police seized a Proton Wira, two fake number plates, petrol, paint and mobile phones believed to have been used in multiple intimidation attempts.

Preliminary urine tests showed both suspects tested positive for methamphetamine.

Linked to 17 Cases Across Johor

The arrests have helped solve 17 intimidation cases across the state involving similar violent methods.

Police have submitted 19 investigation papers to the state prosecutor’s office.

One suspect was charged in the Magistrates’ and Sessions Courts on 4 December with nine offences, while ten more charges are expected to follow.

Earlier Arson-Related Loan Shark Case in Johor

The arrests come shortly after a separate high-profile case in November, where a Malaysian driver working in Singapore was extorted by loan sharks after entering his details into a Facebook loan advertisement. The syndicate burned down his parents’ home in Kluang, causing losses exceeding RM300,000 (approximately US$72,700).

Despite the house being destroyed, the criminals continued issuing threats, forcing the family to pay S$7,000 (approximately US$5,200) in “protection money”, before demanding an additional S$5,000 (approximately US$3,700) as an alleged “arson runner’s fee”.

The earlier case also involved cross-border targeting of Malaysians working in Singapore and the use of arson as intimidation — methods similar to those uncovered in Johor police’s latest arrests.