Malaysia studies stricter penalties and victim compensation for cybercrime, including Singapore-style caning and UK refund systems.
PUTRAJAYA: The government is conducting a special study to develop a more comprehensive protection mechanism for cybercrime victims, said Minister in the Prime Minister’s Department (Law and Institutional Reform) Datuk Seri Azalina Othman Said.
She said the study by the Legal Affairs Division (BHEUU) would examine measures to assist online scam victims in recovering lost funds, as well as the possibility of introducing stricter penalties for offenders.
BHEUU would also review best practices from other countries in protecting victims’ rights and assess their suitability for implementation in Malaysia, she said.
“BHEUU is conducting an in-depth study on issues involving victims, including cybercrime, online harms and digital offences.
“Some countries have different approaches, such as Singapore, where offenders can face caning as part of their punishment. In Malaysia, the penalties currently involve fines and imprisonment, so this is something we will study,” she told a press conference after attending the National Cyber Security Summit (NCSS) 2026 here today.
Azalina said Malaysia’s existing legal framework focuses mainly on prosecuting offenders under laws such as the Penal Code and Criminal Procedure Code, while protection for victims requires further review.
“We want to study what other countries have in place, including the types of penalties and measures to support victims.
“Currently, victims often have limited options apart from making a report. In some cases, they do not recover their lost money,” she said.
She said mechanisms adopted in countries such as the United Kingdom and Australia, where online scam victims may receive refunds under certain circumstances, would be among the areas examined.
“In the UK and Australia, when a person becomes a victim of an online scam, the banks involved refund the victim’s money.
“In Malaysia, Bank Negara has yet to decide on such a mechanism, but it is being considered as part of the study,” she said, adding that the timeline for completing the study had yet to be determined.
