Scam Syndicate Bust: Labuan MP Urges Property Owners To Screen Tenants

LABUAN, June 3 (Bernama) -- Labuan Member of Parliament Datuk Dr Suhaili Abd Rahman has urged property owners on the duty-free island to exercise greater caution when renting out their premises to prevent them from being misused for online scam operations.

He said the recent police raid at a commercial building in downtown Labuan, which led to the arrest of 57 individuals believed to be involved in an international investment scam syndicate, should serve as a lesson to all property owners.

"The tenants had apparently misrepresented the purpose of renting the premises, claiming that the space would be used for agro-related investment activities.

"However, nobody would have expected that the premises would instead be used as a calling centre to carry out fraudulent investment schemes targeting victims overseas," he told Bernama today.

Suhaili said landlords should conduct thorough background checks on prospective tenants, including verifying their business activities and supporting documents before entering into tenancy agreements.

He commended the police and other enforcement agencies for their swift action in dismantling the syndicate.

“I believe this is the second raid on this island thus far involving investment scams. The authorities acted quickly and professionally; their success has helped protect potential victims and safeguard Labuan's reputation as a secure and reputable place for business and investment," he said.

Suhaili stressed that criminal syndicates often disguise their operations as legitimate businesses, making vigilance among property owners increasingly important.

He said the building raided was previously operated as Sara Hotel before the management decided to cease hotel operations in December 2025. 

It was then converted into commercial office space and rented out to various tenants.

On June 1, police raided the premises and arrested 57 individuals aged between 20 and 46 believed to be linked to an online investment scam syndicate targeting victims in South Korea. The suspects comprise 48 Chinese nationals, eight Vietnamese and a Malaysian.

The Sessions Court here yesterday granted a remand order against all the suspects until June 6 to facilitate investigations.

-- BERNAMA