By DayakDaily Team
KUCHING, Dec 19: Kota Sentosa assemblyman Wilfred Yap has urged the federal government to introduce dedicated anti-scam legislation, warning that Malaysia’s existing legal framework is outdated, weak and insufficient to address the growing scale and sophistication of scam cases nationwide.
Yap said the steady stream of media reports detailing Malaysians losing their life savings, from retirees cheated of retirement funds, families pushed into debt to small business owners wiped out, underscored a serious and escalating national problem rather than isolated incidents.
“As the Kota Sentosa assemblyman, I am deeply concerned by the sheer frequency and scale of scam cases reported in the media.
“Despite repeated warnings, enforcement actions and public advisories, the losses continue to mount. This points to a hard truth that our current legal framework is not keeping pace with modern scam syndicates,” he said in a statement today.
He noted that scammers are currently prosecuted mainly under Sections 417 and 420 of the Penal Code, which deal with cheating and dishonest inducement, laws he said were designed for traditional fraud and are increasingly inadequate against technology-driven scams operating across digital platforms and borders.
Authorities also rely on the Communications and Multimedia Act 1998, particularly Section 233, to act against scam messages circulated via WhatsApp, SMS and social media. However, Yap said the law focuses on improper communication and carries penalties that do not reflect the severe financial devastation suffered by victims.
While the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 (AMLA) plays a role in tracing and seizing scam proceeds, especially involving mule accounts, Yap described it as largely reactive.
“In many cases highlighted by newspapers, action only begins after funds have already been transferred, withdrawn or moved overseas, when it is often too late. This explains why so many victims, despite reporting quickly, are told that recovery is unlikely. Our laws are still built to respond after the damage is done,” he said.
Yap pointed to Singapore’s Protection from Scams Act as a model, saying its preventive approach and tough stance against mule accounts, through severe penalties, swift asset forfeiture and restitution orders, has significantly disrupted scam networks.
“Malaysia’s experience, reflected repeatedly in newspaper reports, shows that mule accounts remain a weak link. Penalties are inconsistent, deterrence is insufficient, and syndicates continue to exploit this loophole,” he said.
Stressing that scams are not minor crimes, Yap said they destroy livelihoods, undermine confidence in the digital economy and erode public trust.
“The daily headlines should be a wake-up call. Malaysia must move beyond outdated, fragmented legal tools,” he said.
He urged the federal government to not only introduce a dedicated anti-scam legislation, but also grant enforcement agencies pre-emptive powers to halt suspicious transactions, impose tougher penalties on mule account holders, and strengthen real-time cooperation between banks, telecommunications companies and law enforcement.
“Protecting Malaysians from scams is not optional. It is a responsibility, and the time to act is now,” he stressed. — DayakDaily
