Malaysia urged to consider caning and tougher laws to disrupt scam networks

Malaysia should consider imposing harsher punishments, including caning similar to measures recently adopted in Singapore, to curb the misuse of bank accounts and disrupt scam syndicates, according to consumer advocates, law enforcement officials and crime experts.

However, they cautioned that stricter penalties must be accompanied by stronger financial controls, institutional accountability and cross-border enforcement to effectively combat fraud.

Consumers’ Association of Penang (CAP) president Mohideen Abdul Kader urged Malaysia to emulate Singapore’s move to impose caning on scammers, arguing that even if the immediate impact is felt mainly by low-level money mules, the deterrent effect would be significant.

He said corporal punishment would discourage individuals from allowing their bank accounts to be used for purposes other than their own. Emphasising that bank accounts are strictly for personal use, Mohideen added that any form of abuse should not be tolerated.

Mohideen noted that a single mule account could be linked to a large number of scam victims, and that overseas syndicates would find it far more difficult to operate without access to local bank accounts through which funds can be transferred.

In November 2025, Singapore’s Parliament passed the Criminal Law (Miscellaneous Amendments) Bill, introducing sweeping changes that include caning for serious scam offenders and online sexual predators. The reforms aim to address the surge in digital crime, protect vulnerable victims and modernise criminal sentencing frameworks.

Under the new law, members of scam syndicates and those aiding them — such as money mules who provide bank accounts, SIM cards or Singpass credentials — face caning of up to 24 strokes. Money mules may be subjected to up to 12 strokes of discretionary caning.

Addressing concerns over disproportionate punishment, Mohideen said the objective was not necessarily to reach overseas masterminds directly, but to weaken the local ecosystem that enables scams to function.

Even if the immediate impact falls on low-level actors, he said the cumulative effect would be a reduced pool of local channels for fund transfers, making it significantly harder for foreign syndicates to operate.

He also stressed that the law must clearly distinguish between deliberate enablers and vulnerable or coerced individuals to avoid miscarriages of justice.

Police Support for Tougher Laws Ahead of Cybercrime Bill

Bukit Aman Commercial Crime Investigation Department director Rusdi Mohd Isa said he fully supports imposing harsher punishments on scammers, similar to those adopted by Singapore.

He noted that the government is expected to introduce the Cybercrime Bill in 2026, adding that the Computer Crimes Act 1997 has not been amended since it came into force.

He said authorities are eagerly awaiting tougher punishments to curb the misuse of bank accounts and disrupt scam networks.

With Singapore introducing caning as one of the penalties, Rusdi said Malaysia should also consider similar measures, stressing that laws must evolve with changing times to curb scams effectively.

Deterrence Alone Not Enough, Say Experts

Financial forensics expert Raymond Ram said mandatory caning is primarily intended as a deterrent, noting that Singapore’s move sends a strong signal that scam-related crimes carry serious consequences.

He drew parallels with how mandatory caning previously reduced loan shark harassment cases.

However, Ram cautioned that harsher punishments alone do not materially disrupt the business model of scam syndicates, which are designed to absorb losses at the mule level.

He said low-level actors are easily replaced, while leadership and financial controllers often remain insulated overseas.

Arresting and punishing local mules, he added, addresses only the visible end of the crime while leaving the command structure and money flows intact.

He argued that the most effective deterrent lies in rapid financial disruption, including swift fund-freezing powers, stronger accountability for banks and telcos, and coordinated cross-border enforcement.

Need for a Holistic and Transnational Response

Bar Council member New Sin Yew echoed calls for a broader approach, noting that scam crimes are becoming increasingly complex and technologically driven.

He said scammers now employ artificial intelligence, deepfakes and highly sophisticated tactics, making increased punishment alone insufficient.

He stressed that tackling scams requires a holistic response involving law enforcement agencies, financial institutions, payment gateways, technology companies, social media platforms, telcos and internet service providers, alongside sustained public education.

He also highlighted the cross-border nature of scams, where funds are often moved overseas to evade domestic enforcement.

While stronger penalties may play a role, he said they cannot by themselves resolve a problem that is transnational and technology-driven.

Existing Legal Provisions and Focus on Victims

Crime analyst Kamal Affandi Hashim noted that Malaysia already has provisions for caning under Section 420 of the Penal Code, which covers cheating and dishonestly inducing delivery of property.

However, he said its application depends on the availability of sufficient evidence.

Beyond punishing offenders, Kamal stressed that anti-scam efforts should also focus on assisting victims, some of whom may be accidental, targeted or compliant after being manipulated into believing they cannot be scammed.

He called for a three-pronged approach involving prevention through public education and media outreach; intervention via rapid responses such as the 997 hotline, bank account freezes and legal assistance; and timely legislation to help victims recover funds while offenders are brought to justice.