Malaysian Licensed Moneylenders Association - MILMA

The Malaysian Money Lenders Association was established on 14th August 2003. The money lending business in Malaysia has been in existence since before independence. It was operated in small scales by moneylenders who are commonly known as ‘chettys’. Money lending is a legal business, which should be registered under Licensed Money Lenders Acts 1951. Therefore the business is legally accepted and the moneylenders were highly respected by the communities in those days.

Licensed money lending business, has evolved from a small scale industry in the early and mid of the 20th century, to a medium scale industry now, where as some of the licensed money lenders are operating in systematically using enhance financial technology like banks in operating their businesses.

Licensed moneylenders have developed their image as the most ideal avenue for those individuals and small businesses who have trouble to secure micro loans from the banks in a very short period of time. This business have been accepted by Government as a legal business which come under the purview of Ministry of Housing and Local Government, and governed through Money Lenders Act 1951 and Money Lenders Act (Amended) 2003.

There are about 3,100 licensed moneylenders in Malaysia at the moment. Most of them are still operating in small scale in small towns and outskirts.

MILMA since its inception in 2003, has carried out many activities, meetings, road shows, public awareness campaign, and negotiations with the Ministry, Police, Bank Negara and moneylenders to ensure that the licensed moneylenders are not categorized as Ah Long and to ensure that the licensed moneylenders are operating according to the law stipulated by the Government. The association has organized several meetings with the authority to convince them that licensed moneylenders are not public enemy and the authority should be more careful when handling matters related to licensed moneylenders.

The association is also continuously organizing short courses to enhance the awareness and capacity of licensed moneylenders in Malaysia. The association has also vowed to work closely with the Ministry and Police to halt the operation of illegal moneylenders (ah long).

  • To unify the licensed money lenders in Malaysia under one legitimate umbrella
  • To preserve and intensify the image of licensed money lending business in Malaysia
  • To protect the rights and needs of all licensed money lenders in Malaysia
  • Act as intermediary between the Ministry of Housing and Local Government and the licensed money lenders in Malaysia
  • Provide advice and counseling services to prospective money borrowers
  • Enhance the knowledge of licensed money lenders in matters regarding law (Money Lenders Ordinance 1951 {2003}) and money lending matters.
  • Renewal of Money Lending license
  • Submission of money lenders account as per sec. 16.1 of money lenders act
  • Provide details of the prospective borrower
  • Provide business opportunities to the clients
  • Provide legal assistance
  • Provide an avenue for the members to share their problems and identify measures to overcome those problems
  • Provide a nation wide customer data base for money lenders to evaluate their prospects
  • Offer following courses:
    • Money Lending as a career
    • How to operate by not contravening the Malaysian law
    • How to recover the debts ethically
    • Negotiation skills

In recent times, the money lending business in Malaysia has encountered new challenges that are quite damaging for this industry in this country. The emergence of illegal moneylenders, who are notoriously known as Ah Long, has tarnished the image of licensed moneylenders in Malaysia. The Money Lending act, which was amended in 2003 is not only affecting the invisible money lenders but also has intimidating impacts towards the operation of licensed money lenders who are the easy targets for the authorities to take action against. It is not exaggerate to say that not only those who borrow money from Ah Long are facing nightmares but also the licensed moneylenders who have many sleepless nights due to frequent visits of authorities to their premises due to inappropriate reports made by their clients.


  • To be one of the key economic players of the country.
  • To unite and guide all moneylenders and help the government to eradicate “loan sharks ” in the community.
  • To improve the image of moneylenders by being ethical, professional and law-abiding.
  • To work closely with the government and at the same time maintain and improve the livelihood of its members.
President's Message

Making licensed money lending more meaningful and professional is priority for my role as the president of the association especially at a time when the lending process is tainted with bad publicity by the acts of loan sharks.

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MILMA Registration

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Strive to be ethical and professional moneylenders and at the same time contributing to the social economic development of the country


Professional solution to the micro credit needs of the community within the realms of the moneylenders act 1951