Kutu Games: What Do You Need to Know?

One of the most popular money games in Malaysia is to play kutu. Try asking your mother or grandmother; some must have played kutu before. In fact, there may even be your friends or relatives who are still playing kutu nowadays.

Usually, it is considered an easy way to have a large amount of money by collecting money from many people. Each participant will have their turn to receive the accumulated money.

Those who play this kutu will usually use this kutu money to travel or make big purchases such as mobile phones, refrigerators, curtains, or new furniture.

Undoubtedly, most of them also dream of receiving the money before Hari Raya to meet their family's needs.

However, in the excitement of playing kutu, many are not aware that playing kutu is an offense under the Kumpulan Wang Kutu (Prohibition) Act 1971, and anyone found guilty can be fined not more than RM50,000 or imprisoned for not more than ten years, or both.

What is A Kutu Games?

Initially, play kutu was a synonym among the Malay community, especially women, who are usually housewives.

This concept of play kutu is more or less like making a loan, but with people close to us without paying interest or plagued with strict conditions.

This kutu game is considered a group saving scheme requiring several members to 'contribute' an agreed amount of money every month.

Usually, a 'ibu kutu' will also be chosen as the treasurer to manage the collection and distribution of the kutu money. Then, group members will receive the amount of money in turn.

If there are 8 participants and the agreed collection amount is RM200 per month, each month, one group member will receive RM1,600 according to the turn determined through the draw of votes.

On the positive side, this kutu game is a method of forced savings because participants must set aside monthly money to pay the agreed amount.

Is It Worth To Play Kutu?

Nowadays, despite a few obstacles to going to the bank or saving and investing money, the kutu games are timeless and everlasting.

Many people still play kutu, and the modern kutu concept can be seen as people starting to play kutu via online media, such as social media and messaging platforms.

However, one must be aware that the risk of playing this kutu is high because nobody can be trusted fully, even if we play with those who are close and known.

Many problems often arise when the 'ibu kutu' are untrustworthy and run with the accumulated money. Those who have passed their turn may not be much affected, but those still waiting for their turn will suffer the loss.

In addition, there are cases where participants refuse to pay according to their turn, even though they have received the money before. When this happens, other participants will not be able to receive the money as they should.

So, apart from breaking the law, playing kutu is exposed to the risks of being scammed and losing money. Even if you play kutu among your family, anybody can be blinded by a large sum of money. If the problem arises, there will be a family dispute as the one who cheated is a family member.

In terms of investment and money management, playing the Kutu game does not actually give dividends, and the sum of money each participant receives is the same event if they played it for one year or more.

However, suppose the same amount of money was to be invested monthly, for example, into Amanah Saham Bumiputera (ASB). In that case, the money will receive a dividend at the end of the year.

Even if the amount may not be significant at the beginning of the investment, the money will grow over time, especially if the capital and dividends are not withdrawn.

New Style Of Playing Kutu: What Do You Need To Know?

Although it has been slightly forgotten, playing kutu is now back with a more sophisticated method. The participants are bolder and willing to bear the risk as they play through kutu groups offered via Facebook or Telegram groups.

Indeed, this kutu is riskier because we do not know the participants personally, including the 'ibu kutu.'

Many out there want to take advantage of your desire to have a large amount of money at one time. Many scams are offered through Facebook, where you only have to contribute a certain amount monthly. Some even request that the participants look for a downline so that the amount they get is more extensive.

This method is actually similar to the Quickly Get Rich Scheme or MLM because it is a multi-layered kutu game, but what is certain is that the 'ibu kutu' is the most profitable because they always receive a large amount of money every month.

If the 'ibu kutu' runs away, what will happen to the first, second, third, fourth, and other participants? Last year, a nasi lemak seller was fined RM50,000 by the Sessions Court after pleading guilty to organizing a 'kutu money' group by offering multiple returns in 2018.

According to the charges, the woman was accused of organizing a kutu fund with five individuals through the social media site Facebook between January and August 2018. Based on the Court's decision, the woman's offense was severe considering that it was not a traditional kutu method but instead offered multiple returns on the condition of having to find as many members as possible.

Playing kutu can also be illegal when the 'ibu kutu' charges membership fees from participants who subscribe to the kutu scheme. The game also becomes illegal when the 'ibu kutu' demands profit from the participants to enrich themselves.

In addition, kutu games activities are illegal when the fund is widely advertised or promoted to the public.

Therefore, be careful if you want to play kutu. Still, please choose to put money or invest in a government-recognized financial institution to avoid losses due to being conned.

The choice is in your hands; instead of getting stuck in uncertain money games, make a wise decision and do not harm yourself because there are many legal and safe ways to invest and grow your money.

Key Takeaways:

1) Playing Kootu is an offense under the Kootu Funds (Prohibition) Act 1971 and can be fined RM50,000 or 10 years in prison or both if;

a) Membership fees are charged to participants who subscribe to the scheme.

b) The game is advertised or promoted to the public.

2) It has a risk where the head of the scheme may misappropriate funds and cause capital loss.

3) Subscribing to the scheme does not give returns or profits to the participants and can even cause losses.

4) It is important to be careful when playing Kootu, or it is better to avoid it and use the money to invest in places that give profit and offer low risk so that money can grow.