KUALA LUMPUR, June 16 — Inspector-General of Police (IGP) Tan Sri Khalid Abu Bakar today advised Malaysians to not fall for investment companies which guarantee annual returns of 16 per cent and above.

In a press conference here, he rubbished promises of immediate monthly returns exceeding the said quantum, labelling such businesses as "fly-by-night” schemes.

"But to Malaysians again, I want to advise. If there are any offers to invest in any business which promise returns exceeding 16 per cent a year, we have to review what is that investment about.

"Because any investments which promise returns or profits exceeding 16 per cent a year, that is necessary for us to suspect,” Khalid told reporters.

Khalid was responding to a query on the status of a case involving 71 Chinese nationals in Bukit Jalil after they were allegedly misled to invest in controversial firm Monspace (M) Sdn Bhd.

Khalid said investigations are still ongoing together with Bank Negara Malaysia (BNM).

"That one, let us investigate. Those reports, we have received them. So our side, together with BNM will gather evidence to investigate this case and take the next course of action,” he said.

In May, BNM had announced that any financial fraud and scams would be pursued by an inter-agency initiative led by the Attorney-General’s Chambers under the National Coordination Committee to Counter Money Laundering.

Monspace is a multi-level marketing company which has been listed as an illegal business in BNM’s updated Financial Consumer Alert.

Former IGP Tan Sri Musa Hassan, is the president of MonSpace Net Inc, a subsidiary of the controversial company.