Trade Advisory: Problems and Precautions

1.   This is an updated trade advisory issued in the interests of Indian Small and Medium Enterprises (SMEs) that intend to or are doing trade with Malaysian entities in Malaysia. It is intended to enhance the commercial cooperation between India and Malaysia by drawing attention to some of the risks faced by Indian SMEs and encourage them to take preventive and/or mitigating action.

2.   The information contained in this advisory is based on trade-related problems that are periodically brought to the High Commission’s attention for information, facilitation and assistance. It is meant to serve as broad guidance cataloguing some major checkpoints that could be observed by Indian companies in trade transactions with Malaysian companies to minimise the possibility of problems or disputes. It does not substitute in any way the Company’s own actions or responsibility in this regard.

3.   Typically, the trade-related problems brought to the High Commission’s attention cover the following issues:

For Export of items by Malaysian Companies:

• Supply of sub-standard goods, inferior quality;
• Supply of sand, stones, salt, bricks, mud, waste etc. in place of desired products;
• Refusal to send consignments on receipt of payment;
• Quantity dispute;
• Stopping communications on receipt of advance payment;
• Dispatch of defective machinery and items;
• Diversion of payment into unassociated bank accounts by third fraudulent parties by hacking into email IDs;
• Taking money for sample dispatch and then stopping all correspondences;
• Hiking prices after signing a contract on various grounds;
• Not providing all relevant documents for customs clearance like original Bill of Lading (B/L), Pre-Shipment Inspection Certificates (PSIC) etc. (on the pretext that it is not mentioned in the agreement etc);

For Import of Items by Malaysian Companies from Indian Companies:

• Refusal to make payment after taking control of consignment exported from India on some pretext;
• Refusal to take delivery of the consignment when the market value of the imported item has gone down from the value fixed in agreement;
• Involving an intermediary buyer with whom all contracts and communications are exchanged, whereas the end/actual buyer, while remaining unknown to the Indian company, refuses to make payment after receiving the goods;
• Non-release of Pre-Shipment Inspection Reports/Certificates (PSIC) in due time after departure of shipment from the Indian port, entailing demurrage on arrival at port in Malaysia;
• Scammed by use of false documents in the name of some other Malaysian company.

A descriptive account of typical modus operandi of offending Malaysian entities is enclosed at Annexure 2.

4.   Accordingly, Indian companies are advised to take due precaution while engaging in business transactions, particularly when dealing with new or unfamiliar companies. A recommended list of check-points is placed below. It is not an exhaustive list of measures or options.

1. Run the credentials check of the Malaysian Company. Since all the companies in Malaysia are registered with Companies Commission of Malaysia (Suruhanjaya Syarikat Malaysia – SSM), the following procedures may be followed to check the genuineness of Malaysian companies.
   • Visit the website https://www.ssm-einfo.my/ and register as e-account member to obtain a login ID & Password.
   • Go to e-Account and log in. You can check from SSM website using either registration number or name of the company and other details.
   • If the said company’s name is not found in the SSM website, it implies that the company has not been registered with the Malaysian Government. In such cases, it is not advisable to do business with such unregistered companies.
   • If the company is registered with SSM and if you wish to obtain company’s business profile, turn over, financial standings, etc., there is a provision to obtain these details by making a nominal online payment as instructed in SSM website for this purpose.
2. Before signing a contract, gather a copy of the business license and enquire about the Company from Companies Commission of Malaysia (SSM) / Suruhanjaya Syarikat Malaysia (SSM).
3. In case of large transactions, it is highly recommended that Indian companies may consult a Business Service Company/Law firm which can provide a report on the business transparency, financial health, reputation, reliability and credentials of the Malaysian entity.
4. Verify payment details through the Royal Malaysia Police’s Commercial Crime Investigation Department (CCID) e-services at Semak Mule (https://semakmule.rmp.gov.my/ ). Avoid making payments to personal bank accounts and ensure communication is conducted through official company email addresses. Be wary of free email services (e.g., Gmail, Yahoo) often used in fraudulent activities.
5. Verify company addresses using online tools like Google Maps. However, the address alone does not guarantee reliability. Be cautious if the address is linked to hotels, malls, public buildings, or residential areas.
6. Reliable companies often belong to relevant industry associations. Key associations include FMM, MRC, MARGMA, AMMI etc. Additional associations can be found on the website of MATRADE (https://www.matrade.gov.my/en/enquiry/97-contents /links-malaysia/348-industries-associations )
7. CTOS, Malaysia’s leading Credit Reporting Agency, offers in-depth background checks on companies. Services are fee-based and available at CTOS (https://ctosbasis.com.my/creditinfo/ ).
8. It is highly recommended that before doing business with any Malaysian entity, Indian companies must collect and retain the copies of both the Resident Identity Card (Malaysian Identity Card i.e. MyKad) and Passport of the proprietor, representative of company and other responsible interlocutor(s) of the Malaysian entity.
9. Exercise caution with communication via mobile numbers. Use the CCID’s Semak Mule (https://semakmule.rmp.gov.my/ ) to check for reports linked to suspicious numbers.
10. Always verify the sender’s email domain to ensure authenticity and protect your personal information.
11. Be extremely cautious of any email claiming to be from a bank representative if it originates from a free email service (e.g., Gmail, Yahoo, Hotmail). Each Malaysian bank maintains its own brand-specific domain—such as [at]maybank[dot]com, [at]cimb[dot]com, [at]rhbgroup[dot]com, [at]publicbank[dot]com[dot]my—and their corporate addresses typically follow a consistent format like [firstname].[lastname][at]bankdomain[dot]com or a first initial plus the last name.
12. Avoid transacting with any company from a B2B platform. Some B2B sites play on human greed by offering products at much lower rates than the market value or vice- verse. These websites should be shunned.
13. Check the list of Malaysian Companies involved in trade disputes with Indian companies till date is attached herewith at Annexure 4, which will updated by the Mission from time to time.
14. The Indian company should not pay or raise an invoice against any third party / company whose credentials are not known.
15. Site visits maybe considered for large transactions. Take photos of the company and the factory during such visits.
16. Check whether products are produced by the company and whether the packages belong to the target company.
17. The Indian company should ensure that all documents required for customs clearance like original BL, PSIC etc. should also be clearly mentioned in the contract / agreement with the Malaysian company.
18. Payment with Letter of Credit (L/C) is recommended when the contract object is of a high value; alternatively, both the parties should operate through an ‘Escrow account’ or ‘Bank guarantee’ route.
19. If payment with Letter of Credit (L/C) or ‘Bank guarantee’ route is not adopted, it is advised to appoint a professional third-party to inspect the products in order to determine whether the products comply with the agreed standard (quality and quantity) or not.
20. Balance amount should be released only after checking the quality and quantity of the consignment received in India. Letter of Credit should be opened with the provision of honouring it on inspection of in-bound cargo at the Indian port and not on placement of Bill of Lading only. If B/L placement is the norm, presence of a Company representative from Malaysian Company maybe insisted upon at the time of inspection of the cargo at the Indian port, especially, if the bulk or value of the consignment is large.
21. For export of any product from India, the Indian exporter must ensure that all the procedural formalities as per Malaysian rules and regulations are carried out. If any Pre-Shipment Inspection (PSI) is required to be carried out by any Malaysian Government-authorized agency and the relevant certificate needs to be submitted for clearance of the cargo at any Malaysian port that must be obtained before the vessel leaves Indian port. Otherwise the ship may get stuck at the Malaysian port and the Indian exporter may accumulate demurrage.
22. The Indian company should insist on having the registered documents and other agreements as signed with the Malaysian company attested by the High Commission of India. This process of attestation of documents by the High Commission involves both the Director of the Malaysian entity as well as the Ministry of Foreign Affairs, Government of Malaysia and thus, weeds out fake companies in most of the cases.
23. Clear definition of what constitute force majeure and what does not will be helpful. Particularly, cost escalation due to unforeseen supply chain disruptions needs to be covered under the contract between the parties.
24. In case of non-settlement of case, Indian Companies are advised to take the matter through judicial process/ litigation with the Commercial Crime Investigation Department (CCID), Royal Malaysian Police as per the local laws and file a police complaint in Malaysia with the help of a local lawyer. For legal representation, please visit the Malaysian Bar Council website (https://www.malaysianbar.org.my/ ).

5.   All the trade-related complaints/grievances maybe addressed to the Directorate General of Foreign Trade (DGFT), Govt. of India and Commercial Representative at High Commission of India, Kuala Lumpur at fscom[dot]kl[at]mea[dot]gov[dot]in, com1[dot]kl[at]mea[dot]gov[dot]in & com2[dot]kl[at]mea[dot]gov[dot]in

*****

Description of the modus operandi or potential tricks adopted by the fraudster companies in Malaysia

1. An Indian company is contacted by the Malaysian company/entity for business. After several rounds of emails and phone calls, the Malaysian company invites the Indian company to visit their facility in Malaysia and meet the executives of the Malaysian company and senior officials of the local Government, projecting this as an apparent exercise at confidence building. The Indian company agrees to visit Malaysia. Just before the departure of executives of Indian company, the Indian company receives a request from the Malaysian company to bring cash for arrangements and gifts for the senior executives and other local officials, citing local cultural values. The Indian company agrees to get cash and gifts and visits the facilities and meets the executives of the Malaysian company. The Indian company is promised of excellent cooperation by the Malaysian company. After the Indian company representative returns to India, the Malaysian company goes silent and stops replying to the communications of the Indian company. The Indian company ends up losing cost on transportation, accommodation and the amount incurred for gifts.
2. The Indian company, wishing to import products from Malaysia, finds a Malaysian exporter from B2B portals and other online sources. The Indian company contacts the Malaysian company. Thereafter, the Malaysian company insists that the Indian company should send a percentage of the total amount as advance. The Indian company, unaware of the credentials of the Malaysian company, makes the advance payment. The Malaysian company receives the payment and thereafter, breaks all the communications with the Indian company, let alone sending the consignment to the Indian company. The Indian company ends up losing the advance payment.
3. The Indian company contacts/is contacted by a Malaysian company through various online sources/social media. After the deal is finalized between the two parties, the Indian company requests for a sample of products from the Malaysian company. The Malaysian company duly sends the samples which are found to match the desired standards. Thereafter, the Indian company places further orders with the Malaysian company and transfers a percentage as advance payment. It is agreed between the two parties that the Indian company will release LC after the consignment is received at the designated Indian port. The consignment reaches the Indian port and after inspecting the bill of lading, Indian company releases the LC. Till this time, the Indian company has not seen the actual product. The Indian company gets to see the actual product after the consignment is released by Customs. After the consignment is delivered to the Indian company, it is found that the product is sub-standard or totally different from what was agreed upon in the agreement between the two companies. The Indian company complains to the Malaysian company about the spurious quality of the consignment to which, the Malaysian company puts the blame on the storage conditions and refuses to accept that it had sent spurious products. The Indian company ends up losing the advance and the amount towards LC.
4. The Indian company contacts/is contacted by a Malaysian company though various online sources. After several rounds of emails/phone calls both the parties conclude an agreement whereby the buyer (the Indian company) has to make an advance payment after which, the Malaysian company will send the consignment to India. After the Indian company makes a part-advance payment, the Malaysian company goes slow on communicating with the Indian company and after repeated requests by the Indian company to send the consignment, asks the Indian company to make the remaining payment. The Malaysian company cites excuses such as the Indian company failed to make advance payment in time, the cost of the raw material has increased, their supplier failed to deliver products in time, etc. The Indian company risks losing the advance payment if it does not make the full payment and losing entire amount in case it pays the full amount and the Malaysian company refuses to supply the goods.
5. The Malaysian company, either before or after the finalization of the deal, insists that the agreement be notarized, with the notarization costs to be shared equally between both parties. The Indian company promptly pays its share of the agreed fee. However, after the Indian company representatives return to India, they are informed that additional payment is required because the notarization fee has either increased or is subject to refund upon the completion of the agreement. This creates a dilemma for Indian company: if they refuse to pay the extra amount, they lose their initial investment. However, if they agree to pay, they risk losing both payments if the agreement falls apart or the promised refund never materializes.
6. Right before finalization of the negotiations between the Indian and the Malaysian company, the Indian company receives an instruction by the employee of the Malaysian company to transfer the advance/full amount in some other bank account, instead of the bank account of the Malaysian company as specified earlier during the negotiations. Following the instructions, the Indian company transfers the advance/full payment to the new bank account. The employee goes silent after the Indian company transfers the amount. Later when the Malaysian company is contacted about the whereabouts of the consignment as promised, the Malaysian company responds that the bank account as given by their employee was not the company’s account or the employee has already left the company and has cheated the Indian company without the knowledge of the Malaysian company. The Indian company ends up losing the entire amount transferred to the bank account of the Malaysian company.
7. The Indian Exporting Company has a steady and smooth business with a Foreign Company. The Foreign Company makes a supply-order which is duly carried out by the Indian Exporter. The Foreign Company is asked by the Indian Company to transfer the fund in its new account, which is fulfilled by the Foreign Company. All the above communications are made through e-mail/whatsapp. However, money does not reach Indian Company bank account. Later it comes to light that during the process, the foreign company is instructed—via email or WhatsApp—to transfer funds to a "new bank account" supposedly belonging to the Indian company. Unbeknownst to both parties, scammers have hacked the foreign company’s email account and created a fake email ID resembling the Indian exporter’s address. The scammers manipulate the correspondence between the hacked foreign email and their fake Indian email, directing the foreign company to transfer the funds into a bank account controlled by the scammers. As a result, the money never reaches the Indian exporter’s account.
8. Malaysian importer places order in bulk amount like onion to Indian exporter on an agreed cost. On reaching at the Malaysian port, the Malaysian company refuses to take delivery on the ground that the market price has gone down for the consignment and the pre-agreed cost would no more be tenable. Indian shipper is stranded with the cargo. Either he has to sell at much lower price or return his shipment back to India or scout for another buyer. In all such eventualities, Indian exporter loses money.
9. Indian importer contacts/is contacted by a Malaysian company representative who happens to be a very smooth talker. They start correspondences through mail/whatsapp. Indian company is asked to send advance for sending sample. Indian company sends advance. Thereafter, all the communications stop from Malaysian side. These are fly-by-night entities with false company address and temporary phone numbers. There will be no trace of them after a short period.
10. Indian company is reached out by a Malaysian company and checked its credentials like business licenses, company registration and found out the company is just freshly established with small amount of registered capital (MYR 10,000-100,000). Then the vigilance must be highly sharpened while placing orders to this kind of companies. The fraudsters can easily register a small company and conduct the economic crimes.
11. Indian company establishes contact with a Malaysian supplier promising high-quality products at great prices. To assess product quality and reliability, the Indian firm places small initial orders. Successful deliveries build trust, leading to a larger order. The Malaysian supplier then defrauds the Indian company by delivering substandard goods and cutting off communication.
12. The Indian company contacts/is contacted by a Malaysian company through various online sources/social media to sell some item(s). After negotiations, both parties finalized the deal with agreed payment terms of 10% advance and 90% via bank transfer under the Document Against Payment (DAP) method. The Indian company was instructed to send the bank documents to an address (on the pretext of bank address) provided by the buyer, which differed from the actual bank branch address. Without verifying the authenticity of this address with the bank, the Indian company sent the original documents via courier. When the shipment arrived at the port, the buyer managed to retrieve the goods without completing the remaining payment. However, the buyer remained unresponsive to any communication of Indian company.

*****

Advisory:Best Practices and Precautions for Indian Companies Engaging with Malaysian Entities. This advisory aims to safeguard Indian companies from potential risks while engaging in business with Malaysian entities.

1. Indian companies are advised to perform an initial online assessment to verify the credibility, including profile and credentials, of Malaysian companies. This should include reviewing any complaints or fraud reports filed by other parties.
2. Ensure all business engagements with Malaysian companies are supported by properly signed contracts.
3. Incorporate an arbitration clause in contracts to address potential disputes effectively.
4. Insist on obtaining copies of the Malaysia Identity Card (MyKad) and Passport of the proprietor and other key representatives of the Malaysian company.
5. Specify in the contract that all documents required for customs clearance, such as the original Bill of Lading (BL) and Pre-Shipment Inspection Certificate (PSIC), are to be provided.
6. For significant transactions, consult a Business Service Company/Law Firms to evaluate the Malaysian entity's business transparency, financial health, reputation, and reliability.
7. Obtain a copy of the Malaysian company’s business license and verify its legitimacy through the Companies Commission of Malaysia (SSM) / Suruhanjaya Syarikat Malaysia (SSM).
8. For substantial transactions, consider conducting site visits to the company’s premises and document the visit with photographs.
9. For high-value transactions, the preferred payment method is via Letter of Credit (L/C). Alternatively, both parties may agree to use an escrow account or bank guarantee. Letters of Credit should be contingent upon the inspection of inbound cargo at the Indian port, rather than merely upon the issuance of the Bill of Lading. If the placement of a Bill of Lading is customary, it is advisable to require the presence of a Malaysian company representative during cargo inspections, especially for large consignments.
10. Arrange for physical certification of product quality and quantity by either visiting Malaysia or employing a professional third-party inspection agency.
11. Conduct physical inspections of goods at the loading point in Malaysia to ensure compliance with agreed terms.
12. Insist on having the registered documents and other agreements as signed with the Malaysian company attested by the High Commission of India.
13. Check the e-mail ID of the dealing foreign company, whether Malaysia-based or third country-based, every time a correspondence is made. For fund transfer, Indian company must ensure that its bank account is properly communicated to the Malaysian/foreign company through different modes of communications (fax, courier) and not through e-mail only.
14. The Indian company in consultation with the Malaysian company could include a clause in the contract which provides for release of LC only after verification of quality and quantity of goods by an internationally accredited inspection agency at destination port.
15. Obtain proof of the Malaysian company’s existence, such as a company registration document, certified by the Malaysian Ministry of Foreign Affairs and the High Commission of India in Malaysia.
16. Request Quality Certificates for imported products, authenticated by the Malaysian Ministry of Foreign Affairs and the High Commission of India in Malaysia.
17. Insist on having the registered documents and other agreements signed with the Malaysian company attested by the High Commission of India in Malaysia. This process of attestation of documents by the High Commission involves both the Company’s authoritsation as well as Ministry of Foreign Affairs, Government of Malaysia and thus, weeds out fake companies in most of the cases.
18. Confirm that payments are made to the Malaysian company’s official bank account and not to an individual’s account.
19. Verify that the products are produced by the Malaysian company and that the packaging matches the agreed standards.
20. Treat each transaction independently, maintaining stringent documentation and scrutiny processes regardless of any prior successful business dealings.
21. Check the list of Malaysian companies involved in trade disputes with Indian companies available at the website of High Commission of India, Kuala Lumpur.
22. Be extremely cautious of any email claiming to be from a Malaysian Bank representative if it originates from a free email service (e.g., Gmail, Yahoo, Hotmail). Each Malaysian bank maintains its own brand-specific domain—such as [at]maybank[dot]com, [at]cimb[dot]com, [at]rhbgroup[dot]com, [at]publicbank[dot]com[dot]my— and their corporate addresses typically follow a consistent format like [firstname]. [lastname][at]bankdomain[dot]com or a first initial plus the last name. Always verify the sender’s email domain to ensure authenticity and protect your personal information.

1. Do not make advance payments to Malaysian companies whose credentials have not been thoroughly vetted. If advance payment is necessary, both parties should utilize an Escrow account or Bank Guarantee. Indian companies must secure a guarantee before issuing any advance payments.
2. Do not release the balance payment until the quality and quantity of the consignment are verified upon arrival in India.
3. Avoid advance payments via bank transfers unless the Malaysian company’s credibility is beyond doubt.
4. Refrain from making payments through Telegraphic Transfers (TT).
5. Do not make payments to any third-party companies or agents.
6. Do not rely solely on email communications for bank details; verify using supplementary methods such as fax or courier.
7. Avoid signing contracts or transacting with companies through B2B platforms or social media channels like WeChat, WhatsApp, Facebook, Telegram etc. Be cautious of B2B websites offering products at significantly lower rates than market value, as these may be indicative of fraudulent operations.
8. Do not release L/C unless the quality and quantity of the product are satisfactorily verified. Incorporate a provision in the agreement that conditions the release of L/C upon quality assurance by the Indian company.

Complaints/Grievances: In additon to reporting the Malaysian authorities mentioned in Annexure-5, all the trade-related complaints/grievances maybe addressed to the Directorate General of Foreign Trade (DGFT), Govt. of India and Commercial Representative at High Commission of India, Kuala Lumpur at fscom[dot]kl[at]mea[dot]gov[dot]in, com1[dot]kl[at]mea[dot]gov[dot]in & com2[dot]kl[at]mea[dot]gov[dot]in

*****

List of Malaysian companies involved in trade dispute with Indian companies

1. A Vista Enterprises/Anisar Resources/Piramal Resources & Vitro/ Samex Resources Group (Malaysia)
2. Grow Express Sdn. Bhd.
3. 4th Empire Trading Sdn Bhd
4. Chunghwa Picture Tubes (Malaysia) Sdn Bhd.
5. FN Resources Sdn Bhd.
6. Tesla Enterprise (Malaysia)
7. Zapos Enterprise
8. Shahul Hameed
9. Sky wealth Global
10. TST Spectrum Global, Malaysia
11. SharminUni Trading Sdn Bhd
12. Al Asia Chemical Industry Sdn Bhd
13. Venturian Minerals Sdn Bhd
14. Asian Re Global Services
15. Fast Aid Medical (M) Sdn. Bhd.
16. Cly Rubber (M) Sdn Bhd
17. Royal Arwa General Trading LLC & Axios Credit Bank Ltd.
18. Acacia Valley Sdn Bhd.
19. Al Sobel Group
20. Rose Management Services Sdn Bhd
21. AA Overseas Sdn Bhd.
22. DSHA Global Link Sdn Bhd
23. Afaweez Resources
24. Dignity Brand Sdn Bhd (Acacia Valley)
25. K.B. Timber Industries Sdn Bhd
26. Sutharsan Trading
27. Asfafa Enterprise
28. Everyday Brush Industries (M) Sdn. Bhd.
29. Ayesha Maju Enterprise (M)
30. Sani Maximo Trading Company
31. Arabian Petroleum Services Sdn Bhd
32. SS Brands Marketing Sdn Bhd
33. Premium Dynasty Enterprise
34. Kundan Collections Sdn Bhd
35. Power Traders
36. Mass Worldwide Sdn Bhd
37. 786 Z Mart
38. B. Mathavon Stores (M) Sdn Bhd
39. Agriscale Resources Sdn Bhd
40. Qureshi Resources Sdn Bhd
41. Tin Indo Sdn. Bhd.
42. ATC Worldwide Enterprise
43. Aavin International Sdn. Bhd.
44. Hero Exim Sdn Bhd
45. Sky Wealth Global
46. Venturian Minerals Sdn Bhd
47. AJ Kencana Company
48. The Pearls Works
49. Wan Hai Lines (M) Sdn Bhd
50. Saviour Trading Sdn Bhd
51. Malaysia Chemical Exporters
52. Noor Lv Enterprise
53. Kah Glove Sdn. Bhd.
54. Xylene Marketing
55. Pak Land Commodities Sdn Bhd
56. Green Bay Asia Sdn Bhd
57. Fatemi Resources Sdn. Bhd
58. MHDNRR Enterprise And Ziofy Resources
59. Engro Foods Sbn Bhd
60. Ecotrade Group (Malaysia) Sdn Bhd
61. Patel Food Trading Sdn Bhd
62. Alkanest Entreprises (Earlier Patel Food Trading Sdn Bhd)
63. Winner Fresh Food Supply
64. Worth Planner Sdn Bhd
65. Naj Import & Export
66. LKG Import & Export Sdn Bhd
67. Gsion Resources (M) San Bhd
68. Orel Entrepreneurs
69. Sky Gloves
70. AR Rayyan General Trading
71. Longcane Industries Sdn Bhd
72. Saeeda Multilink Sdn Bhd
73. Alkahest Enterprise Sdn Bhd
74. Global Oil Export
75. Parakkat Trading
76. Top Ace Resources Sdn Bhd
77. Southern Steel Berhad
78. Yuva Venture
79. Waahaj Enterprise
80. Noor LV Enterprise
81. Lusuka Minerals Sdn Bhd
82. Star Revolution Sdn Bhd
83. Asfara Trading
84. POM GOLD
85. MFS Persada SDN Bhd
86. IZZLN ENTERPRISE
87. Zahid Al Ahad (M) Sdn. Bhd
88. VB Soap Manufacturing (M) Sdn Bhd
89. Pakland Commodities & Engro Foods
90. Sitara Banu Enterprise
91. Greenbay Asia Sdn Bhd
92. De Salma Trading (M) Sdn Bhd
93. Navdeep Nijjar Global Management Sdn Bhd
94. Yudi Trading
95. Martoney Oil Sdn Bhd
96. Ns Expert Marketing
97. B&V Global Enterprise
98. Pagoda Foods (Malaysia) Sdn Bhd
99. Al Noorani Foods Enterprise
100. Kong Long Huat Chemicals Sdn Bhd
101. AMRL Resources
102. LKG Import & Export Sdn Bhd
103. Zetter Resources
104. Guinea Foods Sdn Bhd
105. NT Agri Trade
106. Stchem Trading Sdn Bhd
107. Vaniithas Curry Sdn Bhd

*****

REPORTING OF INCIDENTS AND ASSISTANCE

Indian Traders are advised to exercise caution due to a rise in fraudulent activities allegedly originating from Malaysia. This document serves as a guideline to help businesses mitigate the risk of commercial fraud.

Lodging Complaints Against a Malaysian Company: If fraud is suspected, complaints can be lodged with the following agencies:

1. Royal Malaysia Police (Commercial Crime Investigation Department) Address: Aras 33, Menara 238, Jalan Tun Razak, 50400 Kuala Lumpur Tel: 03-26101222 | Fax: 03-26101000 | Email: urusetia_jsjk[at]rmp[dot]gov[dot]my
2. Asian International Arbitration Centre (AIAC-Malaysia) Address: Bangunan Sulaiman, Jalan Sultan Hishamuddin, 50000 Kuala Lumpur Tel: 603-2271 1000 | Fax: 603-2271 1010 | Email: enquiry[at]aiac[dot]world | Website: https://www.aiac.world/ (On the mutual consent of both parties to resolve through AIAC Arbitration Rules)
3. The Malaysian Bar Council (for hiring legal assistance) Address: Wisma Badan Peguam Malaysia, 2 Leboh Pasar Besar, 50050 Kuala Lumpur, Malaysia. Website: https://www.malaysianbar.org.my/

Legal Advice: Lastly, if needed, aggrieved parties or the complainant can hire specialized Malaysian lawyers or law firms for assistance. The Malaysian Bar Council, body of legal practitioners, can be found at http://www.malaysianbar.org.my/

Bank Fraud in Malaysia: It is advised to be extra vigilant in safeguarding their personal information and downloading files or applications from unverified sources onto mobile devices. In case of any bank fraud, following should be done immediately:

• Notify your banks
• Contact the following authorities in Malaysia:
  • NSRC Hotline 997 or nfcc[dot]admin[at]jpm[dot]gov[dot]my
  • The Commercial Crime Investigation Department (CCID) Scam Response Centre at Tel: 03-26101222, Fax: 03-26101000, Operations Room: 03-26101599
  • BNMTELELINK / BNMLINK at bnmlink.bnm.gov.my or call 1-300-88-5465 (Functional from Monday - Friday, 9.00 a.m. - 5.00 p.m. This will facilitate immediate measures for general enquiries and complaint)
  • Lodge a police report to facilitate investigation.

Cyber Frauds:Please refer Annexure 6.

*****

Advisory: Cyber Fraud Cases

Cyber fraud is a growing concern worldwide, and Malaysia has seen a sharp rise in such cases, affecting both individuals and organizations. According to CyberSecurity Malaysia, as of August 2024, there were 4,174 reported cyber incidents, with fraud making up the majority at 2,778 cases. Below is a detailed breakdown of common cyber fraud tactics used in Malaysia:

1. Phishing Scams – Fraudsters impersonate legitimate institutions, such as banks or government agencies, to trick individuals into revealing sensitive information like passwords or financial details. These scams often involve emails, text messages, or fake websites designed to appear authentic.
2. E-commerce Fraud – Scammers set up fake online stores or create fraudulent listings, collecting payments for non-existent products. In some cases, they exploit legitimate e-commerce platforms to defraud buyers. The number of e- commerce fraud cases has fluctuated over the years, with a notable increase to 9,575 cases in 2021.
3. Telecommunication Fraud (Macau Scam) – Criminals pose as officials from the police or Bank Negara Malaysia, falsely accusing victims of being involved in illegal activities. They use fear tactics to pressure victims into transferring money for verification or investigation purposes.
4. Investment Scams – Fraudsters promote fraudulent investment opportunities promising high returns with little or no risk. They use persuasive tactics and sometimes forge documents to appear legitimate, preying on individuals’ financial aspirations.
5. Love Scams – Scammers create fake profiles on dating platforms or social media, building relationships with victims to gain their trust. Once a connection is established, they fabricate emergencies or business opportunities to solicit money.
6. Ransomware Attacks – Cybercriminals infiltrate systems, encrypting files and demanding ransom payments for decryption keys. In some cases, attackers also steal sensitive data and threaten to release it if the ransom isn’t paid, a tactic known as "double extortion."
7. Parcel Scam – Victims receive fake notifications about packages from abroad, often from scammers posing as customs officers. They claim that taxes or fees must be paid before the package can be released, tricking victims into transferring money.
8. Business Email Compromise (BEC) – Attackers hack or spoof a company’s email account to send fraudulent payment requests to employees, vendors, or customers. This scam exploits trust within business communications.
9. Identity Theft – Fraudsters steal personal details to commit various crimes, such as unauthorized transactions or creating fake identities. These details are often obtained through phishing or data breaches.
10. Online Scams and Fraud – Criminals use multiple tactics, including fake friend scams, where they impersonate someone the victim knows to request money or sensitive information.
11. Cyber Blackmail – Scammers obtain compromising information or images of victims, using threats to release them unless a ransom is paid. These cases often involve hacking or deception.
12. Web Defacement – Hackers alter website content, replacing it with political messages, defamatory statements, or showcasing their hacking skills. Such attacks can damage an organization’s credibility and spread misinformation.
13. Data Breaches – Cybercriminals illegally access and steal confidential data, including financial records and personal identification details. This information is often sold on the dark web or used for other criminal activities.
14. Malicious APKs (Android Application Packages) – Attackers distribute harmful mobile applications that, once installed, can steal personal data, monitor user activity, or even take control of the device. These apps often appear as legitimate software.
15. Denial of Service (DoS) Attacks – Cybercriminals overwhelm a website or server with excessive traffic, making it unavailable to genuine users. This can cause operational and financial damage to businesses.
16. Fake Loan Scams – Fraudsters advertise non-existent loans, asking victims to pay upfront fees or share sensitive information, only to disappear without providing any loan.
17. Lottery or Prize Scams –Victims are falsely informed that they have won a lottery or prize and are required to pay taxes or fees to claim their winnings. Scammers use official-looking documents or emails to appear convincing.
18. Fake Charity Scams – Criminals solicit donations for fraudulent or non-existent causes, often exploiting natural disasters or emergencies to create a sense of urgency.
19. Social Media Marketplace Scams – Fraudsters pose as sellers on social media platforms, advertising products or services, collecting payments, and failing to deliver as promised. These scams take advantage of the trust users place in informal marketplaces.

As cyber threats continue to evolve, it is crucial to stay informed and exercise caution when sharing personal or financial information. Always verify sources, use strong security measures, and report suspicious activities to authorities.

Advisory: Best Practices and Precautions advised to avoid cyber fraud

1. Keep Systems Updated – Regularly install updates for operating systems, apps, and security tools to protect against vulnerabilities.
2. Use Strong Authentication – Enable multi-factor authentication and use unique, complex passwords to enhance security.
3. Maintain Secure Backups – Back up important data frequently, storing at least one copy offline or in secure cloud storage.
4. Be Vigilant with Links & Attachments – Always verify the source before clicking on links or opening attachments.
5. Shop and Pay Securely – Purchase from reputable websites, use secure payment methods, and check seller ratings.
6. Verify Unusual Claims – Confirm any suspicious demands directly with the official organization before taking action.
7. Research Before Investing – Consult financial experts and verify platforms before committing to investments.
8. Exercise Caution in Online Relationships – – Be mindful of sharing personal or financial details online, especially with unfamiliar contacts.
9. Install Protective Software – Use reputable antivirus programs and avoid opening unknown email attachments.
10. Double-Check Payment Instructions – Confirm account details through a second communication channel before transferring money.
11. Monitor Financial and Identity Information – Regularly review bank statements, credit reports, and consider identity theft monitoring services.
12. Be Skeptical of Urgent Requests – Stay cautious when receiving unexpected demands for money, particularly from unknown sources.
13. Protect Sensitive Data and Privacy – Use secure channels for personal information and report any blackmail threats immediately.
14. Secure Websites & Online Platforms – Use strong passwords, update software, and monitor for suspicious activity.
15. Use Encryption and Conduct Security Audits – Encrypt sensitive data, conduct security checks, and limit stored personal data.
16. Download Apps Safely – Only install applications from verified sources and review permissions carefully.
17. Watch for Unusual Resource Usage – Monitor devices for unexpected slowdowns or performance spikes, which may indicate malware.
18. Manage Traffic and Network Security – Use security tools to detect and manage unusual network activity.
19. Report Harmful or Illegal Content – Notify the relevant authorities or platforms when encountering suspicious content.
20. Validate Financial Offers and Advertisements – Confirm legitimacy before accepting financial offers or making payments.
21. Stay Skeptical of Prizes and Lotteries – Be cautious of unsolicited winnings and never pay fees to claim a prize.
22. Donate Wisely – Verify the authenticity of charities before donating and avoid high-pressure solicitations.
23. Trade Safely on Online Marketplaces – Use platforms with buyer protection and be wary of deals that seem too good to be true.

1. Refrain from Password Reuse – Never use the same password for multiple accounts, and avoid weak credentials.
2. Don’t Click Recklessly – Ignore suspicious links or pop-ups and keep software updated to prevent security risks.
3. Avoid Sharing Sensitive Information – Never provide personal or financial details without verifying the recipient.
4. Don’t Shop on Unverified Sites – Avoid unfamiliar platforms and be skeptical of extremely low-priced deals.
5. Refuse to Engage with Threats – Ignore intimidation attempts and never transfer money without proper verification.
6. Don’t Fall for Unrealistic Returns – Reject investment schemes promising abnormally high profits.
7. Don’t Send Money Without Verification – Always confirm the identity of online contacts before making payments.
8. Don’t Immediately Pay Ransoms – Seek expert advice and isolate affected devices instead of paying attackers.
9. Don’t Rely on a Single Communication Channel – Verify any payment or account changes via an alternative method.
10. Don’t Overshare Personal Documentation – – Only provide personal documents on secure and trusted platforms.
11. Don’t Act on Unconfirmed Financial Requests – Verify urgent money requests through official sources.
12. Don’t Engage with Blackmailers – Avoid negotiating with extortionists and report threats immediately.
13. Don’t Neglect Website Security – – Regularly update site security measures and change default credentials.
14. Don’t Retain Unnecessary Data – Remove outdated personal or business records to minimize data exposure risks.
15. Don’t Install Unofficial Apps – Avoid downloading apps from unknown sources and review requested permissions.
16. Don’t Overlook Strange Slowdowns – Investigate sudden device slowdowns as they may indicate malware activity.
17. Don’t Leave Systems Unmonitored – Continuously track network activity and update outdated security infrastructure.
18. Don’t Dismiss Harmful Content – Report illegal or suspicious content instead of ignoring it.
19. Don’t Proceed with Unverified Financial Offers – Decline unsolicited loans or investments from unknown entities.
20. Don’t Pay for Unconfirmed Prizes – Never send money to claim lottery winnings without proper verification.
21. Don’t Donate Without Checking – Confirm a charity’s authenticity before making any contributions.
22. Don’t Make Unprotected Online Transactions – Use buyer-protected payment methods and verify seller credibility.

By following these cybersecurity best practices, you can protect yourself from scams, fraud, and online threats.

*****

1. Police : 999
2. Fire : 999
3. Hospital : 999
4. Civil Defence : 999
5. NSRC : 997 (online scam/fraud)
6. Malaysian Red Crescent (MRC): +603 4257 8122

1. +603 2031 999
2. +603 2266 3333

1. +603 2149 6590 (Hotline)
2. +603 2149 6593 (Enquiries)

Commercial Crime Investigation Department: The Commercial Crime Investigation Department, under the Royal Malaysian Police is the relevant authority for handling cases of commercial fraud in Malaysia.

Malaysia Computer Emergency Response Team (MyCERT): CyberSecurity Malaysia provides assistance on cybersecurity incidents, including malware, intrusion, and hack attempts. Reports can be submitted online via MyCERT. MyCERT advises users to perform updates based on the latest security announcements by vendors and follow security best practice policies to determine which updates should be used. For more information, MyCERT can also be contacted through the following channels:

Bank Fraud in Malaysia: The public is advised to be extra vigilant in safeguarding their personal information and downloading files or applications from unverified sources onto mobile devices. Users of financial services also have an important role to keep themselves informed of emerging threats through advisories issued by financial institutions, BNM and other authorities, and taking precautions to protect themselves. Account holders who encounter suspicious transactions involving their bank accounts should immediately:

• Notify your banks
• Contact the following numbers:
  • NSRC Hotline 997 or nfcc[do]admin[at]jpm[dot]gov[dot]my
  • The Commercial Crime Investigation Department (CCID) Scam Response Centre at Tel: 03-26101222, Fax: 03-26101000, Operations Room: 03-26101599
  • BNMTELELINK / BNMLINK at bnmlink.bnm.gov.my or call 1-300-88-5465 (Functional from Monday - Friday, 9.00 a.m. - 5.00 p.m. This will facilitate immediate measures for general enquiries and complaint),
  • Lodge a police report to facilitate investigation.

[Bank and NSRC Advisory: Bank officials would never request sensitive information such as credit or debit card numbers, the card verification value (CVV) number, one-time password (OTP) or transaction authorisation code (TAC), online banking username and password from customers. NSRC only takes calls from the public and do not make outgoing calls.]

Legal Advice: Lastly, if needed, aggrieved parties or the complainant can hire specialised lawyers or law firms in Malaysia for assistance and proceed with the lodging of FIR and further pursuing the matter through the local legal procedure. The Malaysian Bar Council, body of legal practitioners, can be visited at http://www.malaysianbar.org.my/

More information on latest threats/frauds related to cyber and finance in Malaysia: The latest threats and measures that individuals can take to protect themselves against evolving threats can be obtained from the following webpages:

• Malaysia Emergency Response Team (MyCERT): https://www.mycert.org.my/
• CyberSecurity Malaysia: https://www.cybersecurity.my/en/index.html
• National Anti-Financial Scam Centre and National Scam Response Center (NSRC): https://nfcc.jpm.gov.my/index.php/en/
• Amaran Scam Facebook Page at https://www.facebook.com/amaranpenipuan/
• Bank Negara Malaysia (the Central Bank of Malaysia): https://www.bnm.gov.my/
• BNM Scam Notice : https://www.bnm.gov.my/consumer-info/scam-notices
• National Cyber Security Agency (NACSA): https://www.nacsa.gov.my/

*****