Pinoys in Malaysia warned against pawning passports

MANILA, Philippines - The Philippine embassy in Kuala Lumpur has warned Filipinos against using their passports as collateral in personal loans, saying it is strictly prohibited because the passports are government property.

The embassy issued the warning after receiving reports about Filipinos who used their passports as collateral for personal loans transacted with individuals or informal lending institutions in Malaysia.

The report also said that Filipino workers in Malaysia disappeared with no intent of redeeming their passport after collecting their loan proceeds ranging from Malaysian ringgit (RM) 1,000 (around $322) to RM5,000 ($1,612).

The embassy believes the Filipinos involved are not concerned about the importance of their passport because they can simply lodge a police report for their “misplaced” or “lost” passport, which they can submit to the embassy as part of their application to have their passport replaced.

“However, if they are caught by the lenders (loan sharks or “ah long” in local parlance) before they can leave Malaysia, they may be physically harmed or, in extreme cases, killed,” the embassy said.

The embassy reminded Filipinos in Malaysia that using passports as collateral is a violation of the passport law, which may result in the cancellation of their passport by the DFA.