TradeInformer understands that several brokers have been raided by authorities in Malaysia.
At least two brokers are confirmed as having been raided by police over the last two weeks, with some executives held by authorities.
Many brokers are active in Malaysia. However, many of the companies that are based there only use the country as a base of operations, but do not actually take clients from the country.
Problems can arise for both players that are active in the local market and those that use it purely as a place to do business from. This is true of Malaysia and other Southeast Asian countries.
What is striking about the latest raids is they appear to involve a local player that has not historically faced problems from authorities.
Although readers may find a situation like this unusual, companies in the country are usually accustomed to them as they happen frequently.
“They come to the office, they take some people away, and then usually they are out the same day or next day,” a worker at one broker with an office in the country told TradeInformer. “It’s like, ‘ok bye, see you next time’. Our company has not even done anything against local rules, so it feels like a game.”
