'Proactive measures required to tackle money games'

KUALA LUMPUR: Relevant authorities and government agencies have been urged to take more proactive action in tackling the problem caused by money game before it gets any worse.
In making the call, MCA Public Services and Complaints department head Datuk Seri Michael Chong (pix) explained that if no proactive action were to be taken, then the Bank Negara Malaysia (BNM) financial consumer alert list will continue to grow.
"Currently in the list, there are some 334 companies and websites that are suspected of operating money games and pyramid schemes without the approval or authorisation from BNM.
"Although BNM has assured us that they will do their best to regulate and protect the public interest, government intervention is very much needed to solve it because if the issue is to be prolonged it will tarnish the image of the country, as foreigners have also fallen prey to such schemes," Chong said during a press conference at Wisma MCA today.
The list was obtained by Chong during the discussion session he had with BNM on steps to curb money games and pyramid schemes. Also present in the discussion last month were Malaysia Direct Selling Association and Malaysia Crime Prevention Foundation.
Familiar names like MonSpace (M) Sdn Bhd, JJ Poor to Rich (JJPTR), and MBI International Sdn Bhd (MBI) are among those listed in the consumer alert list.
To prevent the list from growing, Chong also advised the public to conduct their investment carefully by counter-checking the investment company with the BNM list before investing to avoid falling prey to dubious money game or pyramid schemes.
He revealed that last year, his department had received 22 money game or pyramid scheme related cases amounting to RM7.8 million, and there have been 10 cases so far this year, amounting to RM4.3 million.
"I believe that the amount so far is just the tip of the iceberg, and if it continues, the losses incurred could reach billions in no time as one scheme usually involves hundreds of people," he said.
Despite having publicised numerous complaints every month, Chong said he was perplexed to see people continuing to fall victim to such schemes.
"I guess the root of the problem still lies with the public themselves, they are attracted by the 'great return and low investment' offered by those schemes.
"Must always remember that there's no such thing as free lunch in the world, you must work for the thing you want," he said.
The full list of unauthorised companies can be accessed on the BNM website here: http://www.bnm.gov.my/documents/2017/20170629_FCA_EN.pdf