Politicians and non-governmental organisations have been asked to help the government counter problems posed by illegal money-lenders.

We hope politicians and NGOs can help us raise awareness of the matter among the people. If we can't get rid of loan sharks, at least we can reduce the amount of money borrowed, Home Ministry parliamentary secretary Abu Zahar Isnin said in the Dewan Rakyat today.

He was responding to a question by Joseph Mauh anak Ikeh (BN-Selangau) who asked the minister for details, according to states, of illegal money-lenders who have been issued restricted residence status, and cases of loan sharks who have been banished.

Abu Zahar said to-date, two persons, one each from Kedah and Pahang, have been imposed with restricted residence for their involvement in the crime.

However, he said it was difficult to pin down illegal money-lenders as they do not leave any trace, such as accounts or records.

Abu Zahar said those who were detained by the police and placed under detention are counselled on the implications of their actions.

Social problems and violence

At this juncture, Raja Ahmad Zainuddin Raja Omar (BN-Larut) asked the parliamentary secretary to explain how the matter can be solved as people find it easier to get a loan from money-lenders compared with government-aided funds, such as Amanah Ikhtiar.

Abu Zahar conceded that it was easier to obtain such loans but warned of the risks involved.

He said loan sharks have not only violated the countrys laws by operating without a licence, but they have also caused social problems by forcing borrowers to pay for high interest rate of about 18 percent imposed on the loan.

There are times when money-lenders are even killed when the defaulting borrower cannot stand the threats and other nonsense used to recoup the loan, he replied.

The loan sharks also resort to violence when they cant get their money back, he said.

Abu Zahar said the government has provision for small traders and this group should take advantage of the easy loan and payback schemes.