Malaysia plays a key role

This article first appeared in The Edge Malaysia Weekly on September 23, 2024 – September 29, 2024

Despite the fact that countless Malaysians fall victim to scammers every day, a report by the United States Institute of Peace (USIP) reveals a disturbing reality: Malaysians are also deeply involved in organised crime networks in Southeast Asia.

The report, titled “Transnational Crime in Southeast Asia: A Growing Threat to Global Peace and Security”, reveals that Southeast Asia is a fertile ground for transnational criminal networks that exploit millions of people worldwide through illegal, unregulated online gambling and sophisticated scams.

It is estimated that by the end of 2023, these syndicates will have stolen as much as $64 billion annually from victims around the world.

While Myanmar, Cambodia and Laos are the epicenters of the regional fraud industry, most countries in Southeast Asia, including Malaysia, play a role in the activities of these criminal networks. They facilitate the illicit trade in forced labor in fraud centers, provide a financial base for laundering illicit proceeds, and support the development of advanced digital technologies used for sophisticated gambling, scams and financial fraud.

The report shows that these criminal networks enjoy political protection through Malaysian clientelism, shielding the real masterminds and scapegoating the lower-level fraudsters.

In essence, Malaysia is deeply involved in regional organised crime. This is a tragic irony considering the many Malaysians who fall victim to these illegal activities, including pensioners and vulnerable groups, most of whom lose their life savings. The question remains: when will this end?

Aside from the significant trauma, distress and depression caused to victims, the damaging impact of such organised crime networks can undermine regional stability and prosperity if left unchecked. It is imperative that governments, law enforcement agencies and international organisations work together to dismantle these networks to ensure security and confidence in the region.

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